For Those Who GC Their Own Rehabs...
I am looking for some tips about GC'ing my own rehabs and hiring my own sub's. So far I have come up with the following:
1. getting multiple WRITTEN quotes (if not working exclusively with a sub that you trust)
2. NEVER pay before work is completed
As you can tell I am not very far with my list. Any additions to this list would be very appreciative. I am interested in any recommendations on insurance coverage with sub's, (do I carry it or do they) so that I am not responsible for a sub getting hurt on the job.
Thanks as always for any replies!
[addsig]
Hi Two,
Add to the list among others...
Have subs give you a copy of their workers comp and general liability certificate and ensure that certificates
are up to date.
Understand what materials and supplies will be used...and why....(comparing apples with apples)
Ensure (within reason) that they need to
start and finish up in a timely manner.
The remove any and all trash / debris
they create.
Withold a percentage (10 - 20%) until work passes inspection.
Once work is complete and all bills paid,
obtain lien release from them....
(although their supplier can come back to you if they fail to pay suppliers invoices...you can get releases from them as well)
Understand what warranties cover.
You should carry a builder risk policy yourself....get one where material is covered upon delivery, not just installation.
Good luck
Quote:
On 2003-08-06 16:13, NC_Yank wrote:
...
Withold a percentage (10 - 20%) until work passes inspection.
...
For my rehabs, I was thinking of paying my GC in 1/3 increments. So, when 1/3 of the work is completed, they get 1/3 of the money. Same for the second and final 1/3s of the work. Does this sound reasonable to you as a GC?
Be careful of sub-contractors that do not pay thier bills for building materials. If they do not pay for materials in cash, then they must furnish you with a lien release. Check with your building department. Florida has tough laws on this.
I always prefer to furnish the materials, then I know that the bill is paid. Materials like concrete, I will give the contractor a check with his name and the supplier's name.
Good luck.
Chuck
[/quote]
For my rehabs, I was thinking of paying my GC in 1/3 increments. So, when 1/3 of the work is completed, they get 1/3 of the money. Same for the second and final 1/3s of the work. Does this sound reasonable to you as a GC?
[/quote]
The percentages I use with my clientel or subs is based more upon the value of the work completed, not necessarily the amount complete. Example; drywall has 3 phases to it.......hanging, finishing and sanding. My subs have different people to complete each task. Do I bill in one third increments...no....because the hanging is the most expensive part of it.
With established clientel (repeat customers) I try to bill them as late as possible as a favor to them. With new clients on small jobs where I am providing the material, I require 50% upfront which will not only pay for my material but my time invested (or wasted if things get ugly) in the project.
In over 20 years of business, I have had only one client that I had to sue in order to recover money owed to me........I won and recovered my money but it was a small amount that if I did lose...I would not be hurt......it was a matter of principle.
I would suggest that Rehabbers buy their own material so as not to have suppliers come back on with liens.....at least until you can establish a trusting relationship with a GC or a subcontractor.
Check with your GC or subs to ensure that whatever suppliers you utilize they are satisfied with.........there are some suppliers as well as lending institutions that they may refuse to do business with.
In short, you must both come to a fair and equitable agreement that you can both live with in case things go wrong.