Pay For Renovation?
Am doing a good size renovation project which I own the property,, I will be buying the material, etc its the labor I have a question about... I have semi contractor not a real general contractor with his crew will be doing the work, my question is in regard to the pay I just want to protect myself and not let it get out of hand ,, he is telling me it will be a crew of 4 at total of 60 dollar/hr..which am ok with but how to protect it from from dragging more than the 6-7 weeks time line,, I thought about pay for the whole job a total amount a lump sum an agreed dollar amount just divided weekly for the life of the job., but from asking around people tell me usually they get paid hourly..and there is always be more things will arise that was not in the original renovation plan. any suggestions would be greatly appreciated.. thanks
thanks for the reply,
how much and how can I hold cash if am paying him by the hour, say if he dose not agree to get paid by the job Phase?
and I have to deal with city inspectors am the owner so so no way around, it i Guess.
If NC is like most of the country there are a lot of contractors that are slow, and bidding work with very little profit margins. 6% to 10%. Here in calif we hold a 10% retention until completion of project. You might want to put your project out to bid and get at lest 3 to 5 bids. A good contractor will get in and get out and not waste any time on his labor. The time you can save will save you plenty. A 4to 6 week project sounds like a pretty nice size job, Im sure Chris can agree with that. Check your local contractors and see how they will work with you, you might be very surprised. good luck and happy hammering
If NC is like most of the country there are a lot of contractors that are slow, and bidding work with very little profit margins. 6% to 10%. Here in calif we hold a 10% retention until completion of project. You might want to put your project out to bid and get at lest 3 to 5 bids. A good contractor will get in and get out and not waste any time on his labor. The time you can save will save you plenty. A 4to 6 week project sounds like a pretty nice size job, Im sure Chris can agree with that. Check your local contractors and see how they will work with you, you might be very surprised. good luck and happy hammering
ok here is the latest on this renovation, I found someone that would do the labor for 15000 just labor and some hourly rate for unseen problems like rotten wood, studs, etc. but here is my question in his propasl he wants to be paid 1200/a week even though we agreed on 15000 cap what if the job is not even close to being finished, by the time the 1200 rack up and get close to the 15000 total,, I am thinking to make him make up a phases list and if he can cut it to weekly pahses where he get paid accordingly then be it, so what do you think? thanks in advance
Your proposal sounds reasonable- pay for completed phases of work. You might consider something like the traditional arrangement where you pay about a quarter of the total amount to start the work, then make progress payments as he completes phases, and the final quarter when the project is complete- making the hourly payments for the unforseen problems when the work is actually done. This would both give him something to live on now, and an incentive to get the project finished.
One point- you have already lost three months rent/time value of your money. I hope the lower price from this contractor more than makes up for this...
Chris
Are you really asking about a performance mortgage?