Hi all! We have a really hard time finding a general contractor for our repair project in a buy & hold SFH in Kansas City, MO. We hired a property manager after purchasing the house and both contractors they sent in are "skeptical about providing a quote if they cannot use their own materials". In their experience "it has lead to a lot of headaches and delays with the project". We are out of state investors and were going to stick to David Green's advise of getting quotes without the materials for fair comparison + being able to select the material we want, put it on our credit cards. Do you think it's reasonable for contractors to refuse a quote without materials? Should we keep looking?
As a long-time Contractor I would never bid on a job where the customer wanted to provide materials themselves. Nothing but headaches....and it's just plain rude. You want to buy the products, but I bet you won't be there to meet the trucks, inspect the materials, unload them or see to their security until they are installed. Right?
You expect the GC to do all that for you for free correct? And then when there is a mistake in the order (because the customer never knows what the H they're doing) then it's a big delay which gets blamed on guess who? Yep, the GC....
@Svetlana Kazantseva if you want to save money (or use your CCs), then it's only fair to pay the GC the money it is costing them to do this your way....I would offer them 20% to start and see what they say. But you will lose any good GCs and end up with the new, inexperienced, unlicensed guys...it just ain't worth it....
Ok, from a Contractor! (Roofer)...
(with J's Roofing - Richardson, TX)
Sure, at times we'll do "labor only" jobs but, we have higher "labor" prices for those type of jobs, and the warranty we would provide on the work, is very limited! Thus, who or how would you proof who/what is at fault if something happens!? Defective materials (that we didn't get), or the person/company that did the work? Hey, things happen, and if something happens that is our fault, we take care of it. (as it should be) And oh, if we're short on materials, or it's not exactly what we need and have to wait or go get the correct stuff!? Guess who pays for that delay, change order, or whatever is appropriate!?!? And in the case of, "I'll get the materials, can you tell me exactly what to get!?" HUH!? lololol SUUUUUuuuure we'll give you a list, and charge you for providing that list! :P
Not saying you shouldn't buy your own materials, not at all, I DO understand your process. But again, realize, that for these "labor only" jobs, your footing most of the responsibility... just how it works or in the end how it winds up.
If you have questions about Roofing or other things, feel free to reach out!
@Svetlana Kazantseva absolutely it is reasonable to ask. I only do GC work for friends and my clients. I focus on flipping houses and running my property management company. But I always bid labor only. Then I have them set up a text to purchase at Home Depot, and my client pays for all the material. We charge $100 to $250 for time spent going to Home Depot, depending on the size of the project. But I absolutely agree you get a labor-only bid.
@Svetlana Kazantseva absolutely it is reasonable to ask. I only do GC work for friends and my clients. I focus on flipping houses and running my property management company. But I always bid labor only. Then I have them set up a text to purchase at Home Depot, and my client pays for all the material. We charge $100 to $250 for time spent going to Home Depot, depending on the size of the project. But I absolutely agree you get a labor-only bid.
Questions: #1 - Are you a state licensed GC? If you are....#2 - IDO you jderstand that it is waaay different for a part timer like yourself than a full time Contractor who makes all of theur money full time as a GC?
@Bruce Woodruff - In the last five years, in Kansas City, MO, I have renovated 170 houses, mostly full rebuilds from the foundation. You do your thing, and I will do mine. I stated very clearly I do not do public GC work or did you miss that somehow?
@Bruce Woodruff - In the last five years, in Kansas City, MO, I have renovated 170 houses, mostly full rebuilds from the foundation. You do your thing, and I will do mine. I stated very clearly I do not do public GC work or did you miss that somehow?
Ok, seeing as ego seems to be getting in the way of comprehending what Bruce was saying, I will try to help clarify. As a person who's done a few ten's of thousands of flips....
The O.P. comment and question was speaking to pricing of GC's who do GC as primary business, income, FT focus. There is a universe of difference in operations between those who do it FT, as a business, as their singular focus, vs a person such as yourself who does it on the side.
You chimed in inferring how you do it, the side-gig-guy, not doing it as a FT business, is a "correct" and normal way and reasonably expected of the professional business's to do it that way.
GC's who do JUST GC as their primary business, they have things nailed down a whole lot more to systemization, because they have-to, efficiency is profit and inefficiency bleeds $.
A GC who does 3, 5, 10 projects at a time, every day, week in and week out, they don't have time for random persons to derail their system. The cost of that person, and derailing the system, is too great. They know every hour crews sit waiting on materials, every trip to get those miss-ordered items, it's $____ gone, and TIME, more time lost which means longer time to get completed and onto next job. So it's a direct cost, and an indirect cost.
Hi all! We have a really hard time finding a general contractor for our repair project in a buy & hold SFH in Kansas City, MO. We hired a property manager after purchasing the house and both contractors they sent in are "skeptical about providing a quote if they cannot use their own materials". In their experience "it has lead to a lot of headaches and delays with the project". We are out of state investors and were going to stick to David Green's advise of getting quotes without the materials for fair comparison + being able to select the material we want, put it on our credit cards. Do you think it's reasonable for contractors to refuse a quote without materials? Should we keep looking?
I would suggest getting the quote with the materials. (They can always break the cost out separate on the bill.) That shouldn't take away your choice - such as, do you want this tan tile or this brown plank, which ceiling fan, etc. You can also pay for the materials separately. Just let the GC know that's what you'd like to do. My GCs in KC get everything (after I agree), and then at checkout Home Depot or whomever calls me for my credit card information. I'm not doing things like choosing which thickness sheetrock or plywood to buy, but things which are variable I choose what I want. I have found the contractors also appreciate doing it that way because they don't have to lay out the money for the materials. The only push back is if the contractor wants to charge a markup on the materials. I usually don't use those contractors. I pay them appropriately for their time instead.
Have never heard of anyone expecting a contractor to do a job for free, but I guess there's all types out there.
Have never heard of anyone expecting a contractor to do a job for free, but I guess there's all types out there.
Lol, not free...what I meant was that a LOT of homeowners/investors want to buy/pay for the materials and then expect the GC to a) be there with their crew (on payroll) to meet the delivery trucks, b) inspect and sign for said materials, c) get their crew to unload and put the materials into the house/storage unit wherever, d) take responsibility and accept liability in case of damage or theft, e) Etc
This is a very common attitude for a homeowner because they (usually) have never run their own business and do not understand that a GC should be compensated for EVERYTHING.....
What people dont understand is that the contractor will make the SAME amount of profit whether they " buy" materials or the contractor gives them a complete price . I get great discounts from my suppliers , because of how much I buy , I mark up materials to retail , exactly what the customer pays . Now I am responsible for damage to those materials . If the customer buys materials its all on them .
When i show up Monday morning with 4 guys and there are no materials , or the wrong materials , no big deal , the customer still gets charged for the lost time . ( My guys expect a paycheck ) .
Pick up 50 sheets of drywall and then load them into the house ? It will cost you more than if I ordered them and had the job loaded .
Too many things to go wrong when the contractor doesnt control the entire flow of the job , and the customer will always pay for the loss of time .
and the customer will always pay for the loss of time .
I haven't read all the replies and comments on here so someone might have already suggested this.
I was mentored by a fellow BP member (https://www.biggerpockets.com/users/olus) to request Labor Only quotes from Contractors. Materials are handled by opening a Home Depot Pro account, and setting up Text2Confirm. My contractor goes to pickup whatever materials he wants himself, but checks out at the Pro Desk with my Phone Number. Home Depot Pro Desk texts me that the contractor is trying to checkout and lists all the items in their cart. I can do a quick review and make sure all the items correspond to what he is doing for the job. I reply by text to confirm the purchase and the transaction is approved and the materials are billed to me.
This might work for you.....
I haven't read all the replies and comments on here so someone might have already suggested this.
I was mentored by a fellow BP member (https://www.biggerpockets.com/users/olus) to request Labor Only quotes from Contractors. Materials are handled by opening a Home Depot Pro account, and setting up Text2Confirm. My contractor goes to pickup whatever materials he wants himself, but checks out at the Pro Desk with my Phone Number. Home Depot Pro Desk texts me that the contractor is trying to checkout and lists all the items in their cart. I can do a quick review and make sure all the items correspond to what he is doing for the job. I reply by text to confirm the purchase and the transaction is approved and the materials are billed to me.
This might work for you.....
Great! How much do you pay your Contractor to go pick up materials for you? The shopping/loading/unloading/taking responsibility for everything? Just curious...
I would assume if you're a fair person, it would be about 20% on top of materials cost? If your Contractor is doing all of this for free, then you should fire them, because they're just stupid, and working with stupid Contractors will eventually get you in trouble........
I haven't read all the replies and comments on here so someone might have already suggested this.
I was mentored by a fellow BP member (https://www.biggerpockets.com/users/olus) to request Labor Only quotes from Contractors. Materials are handled by opening a Home Depot Pro account, and setting up Text2Confirm. My contractor goes to pickup whatever materials he wants himself, but checks out at the Pro Desk with my Phone Number. Home Depot Pro Desk texts me that the contractor is trying to checkout and lists all the items in their cart. I can do a quick review and make sure all the items correspond to what he is doing for the job. I reply by text to confirm the purchase and the transaction is approved and the materials are billed to me.
This might work for you.....
Heads up, the lumber at Home Depot is the worst (it's hard to find a piece that isn't crowned or twisted, the PT is literally still wet and weighs a ton, etc.) plus it's more expensive than the local lumber yard where contractor's get wholesale pricing (30-50% off retail/ what you pay at Home Depot). I keep an account at several of these "contractors only" places even though I'm no longer a contractor.
When I was a contractor, sure I would definitely mark materials up 10-20%, but I'd still be saving my clients 20-30%, plus the lumber would be straight and not wet. I would always have everything delivered straight to the job site. Why would you pay a contractor to drive back and forth to the store and shop for you, load and unload etc. when you can have it delivered to the job site for free? What you're suggesting is fine for handyman-type stuff but for bigger projects you'd be spending more for less this way. The job will also go slower if your workers are at the store instead of working.
@Svetlana Kazantseva I guess that you also bring your own steak to a restaurant ?
I am a contractor , Its a business , we are not labor providers , we provide a finished product . Yes we mark up materials , we mark up subs , we mark up the dumpster . We make money on every thing we do .
No real , licenced and experienced contractor will work like that , not gonna happen .
If you find some one that does , it will cost you more .
I get asked this questions once or twice a year by potential customers , and I tell them I will subtract the amount that I pay for materials , not what you pay . You get no warranty what so ever . If we run short or something is wrong , the whole crew will sit and wait at our hourly service rate until materials arrive . We dont pick up materials , we have them delivered .
^THIS 100%
Heads up, the lumber at Home Depot is the worst (it's hard to find a piece that isn't crowned or twisted, the PT is literally still wet and weighs a ton, etc.) plus it's more expensive than the local lumber yard where contractor's get wholesale.
This is a total tangent, but very interesting nonetheless. In my experience the most common types of lumber (2x4s, 4x8 sheet goods, etc.) are actually significantly cheaper at the box store. I asked my local lumber yard sales rep about it when I saw the unit prices on a lumber package I bought from him were 1.5x and he explained that the orange and blue boxes actually sell these items at a loss to get contractors in the door, then make all their money on fasteners, tools, etc. I checked and sure enough their prices on nails, H2.5s, H clips, etc were double or triple what I paid at the lumber yard. I now get most of my dimensional lumber from the box store but I still order specialty lumber and fasteners in bulk from the lumber yard. The box store lumber can be sketchy, but if you have a good relationship with the pro desk they'll pick out the best pieces for you when they pull your order.
For big builds or remodels, I used to get my framing lumber from the lumberyards (usually) sometimes Home Depot. Pricing was similar, but lumber quality of course a little better at the lumberyard...
But the main reason I would/will buy a large lumber order from the lumberyard is this - they know how to stack the loads. There is nothing worse than getting a lumber load with the plywood on top, and the Pressure Treated on the bottom. You have to have your crew unstack literally everything and re-stack it. After the first time that happened with Home Depot, I told their Pro Desk guy that if I got an order stacked like that I would refuse delivery. That got their attention........
For big builds or remodels, I used to get my framing lumber from the lumberyards (usually) sometimes Home Depot. Pricing was similar, but lumber quality of course a little better at the lumberyard...
But the main reason I would/will buy a large lumber order from the lumberyard is this - they know how to stack the loads. There is nothing worse than getting a lumber load with the plywood on top, and the Pressure Treated on the bottom. You have to have your crew unstack literally everything and re-stack it. After the first time that happened with Home Depot, I told their Pro Desk guy that if I got an order stacked like that I would refuse delivery. That got their attention........
On top of this my framer stacks the unused lumber the lumber yard comes back picks it up and gives us a credit for the lumber that is not used.. that adds up for us in a 90 home project we are currently 2/3rds the way through.
For big builds or remodels, I used to get my framing lumber from the lumberyards (usually) sometimes Home Depot. Pricing was similar, but lumber quality of course a little better at the lumberyard...
But the main reason I would/will buy a large lumber order from the lumberyard is this - they know how to stack the loads. There is nothing worse than getting a lumber load with the plywood on top, and the Pressure Treated on the bottom. You have to have your crew unstack literally everything and re-stack it. After the first time that happened with Home Depot, I told their Pro Desk guy that if I got an order stacked like that I would refuse delivery. That got their attention........
And we have open credit with the lumber yard we can spend 200 to 300k plus a month with them and pay like we pay all our other vendors Net 30 dont have to pay in advance and get a 30 day float.. this allows us to have the house framed and get the framing draw from my bank so we are not advancing personal funds big cash flow issue. at least if your doing a subdivision or volume. Most rehabbers dont really spend that much on lumber. So small orders from home depot i get that.
Heads up, the lumber at Home Depot is the worst (it's hard to find a piece that isn't crowned or twisted, the PT is literally still wet and weighs a ton, etc.) plus it's more expensive than the local lumber yard where contractor's get wholesale.
This is a total tangent, but very interesting nonetheless. In my experience the most common types of lumber (2x4s, 4x8 sheet goods, etc.) are actually significantly cheaper at the box store. I asked my local lumber yard sales rep about it when I saw the unit prices on a lumber package I bought from him were 1.5x and he explained that the orange and blue boxes actually sell these items at a loss to get contractors in the door, then make all their money on fasteners, tools, etc. I checked and sure enough their prices on nails, H2.5s, H clips, etc were double or triple what I paid at the lumber yard. I now get most of my dimensional lumber from the box store but I still order specialty lumber and fasteners in bulk from the lumber yard. The box store lumber can be sketchy, but if you have a good relationship with the pro desk they'll pick out the best pieces for you when they pull your order.
I agree it's a mixed bag on pricing and of course varies from yard to yard, store to store, item to item. I was speaking very generally however even on items where box stores and lumber yards are cost-competitive, it's not really an apples to apples comparison IME because the quality from the yard is usually a lot better, plus it's delivered for free while my local HD charges $100 per delivery, isn't easy to work with on scheduling, and usually only drops it at the curb. I get much better customer service from my local yard, they pick up returns, extend credit, know what they're doing, handle and stack material better, etc.
For example I just did 3 decks for our properties and got grey select Trex in bulk pricing from the lumber yard. It was around 30% less than HD pricing on my PRO account there. My guy at the yard took the time to make sure it was all from the same batch so each piece was a perfect color match, as the color varies a little bit batch to batch and looks like crap if it's mixed IMO. Good luck with that from the box stores where half the time the product has already been used then returned, put back on the shelf damaged and it takes forever going through each one to make sure you're not buying junk. You can forget about color-matching... The hidden fasteners were $140 per bucket at HD, only $80 each from the yard. HD is asking like $4 PER JOIST HANGER these days which is ridiculous, the yard hard them for half that. I have never had good luck getting PT from HD because it's always soaking wet and weighs a ton, then dries up and shrinks leaving big gaps, plus half of it is usually crowned or twisted and completely unusable so it's a non-starter for me, I get that from the yard where it comes straight and dry ready to go. The delivery guy was there at 6:30am before Home Depot even opens, then used his crane to put it all right on top of the deck joists for me so I could start installing it right away and get all the decking done in a day rather than spending that whole day hand-selecting each piece, loading on the truck, unloading at the job site, carrying each 20' heavy-*** piece across the yard and up a step ladder onto the deck which I wouldn't even have been able to do by myself, etc. It would have taken an extra couple of days, I would have had to hire help, and it would have cost at least 40-50% more and taken a lot longer if I'd gone the HD route in this example.
Just one example, but my point is that if anyone is doing all of their business through a box store, they're doing it wrong IMO. Like I said that's fine for small projects here and there, unit turns, handyman type stuff. It might not make much of a difference for that but for anything bigger like a deck or a remodel, there are much better options. To the OP's original question, this is the context of why most contractors don't like to let clients buy their own materials.
Heads up, the lumber at Home Depot is the worst (it's hard to find a piece that isn't crowned or twisted, the PT is literally still wet and weighs a ton, etc.) plus it's more expensive than the local lumber yard where contractor's get wholesale.
This is a total tangent, but very interesting nonetheless. In my experience the most common types of lumber (2x4s, 4x8 sheet goods, etc.) are actually significantly cheaper at the box store. I asked my local lumber yard sales rep about it when I saw the unit prices on a lumber package I bought from him were 1.5x and he explained that the orange and blue boxes actually sell these items at a loss to get contractors in the door, then make all their money on fasteners, tools, etc. I checked and sure enough their prices on nails, H2.5s, H clips, etc were double or triple what I paid at the lumber yard. I now get most of my dimensional lumber from the box store but I still order specialty lumber and fasteners in bulk from the lumber yard. The box store lumber can be sketchy, but if you have a good relationship with the pro desk they'll pick out the best pieces for you when they pull your order.
I totally get what you're saying. Most of my jobs are small-medium residential remodels, which is why the box store approach tends to work a little better for me. I can't imagine going to my Lowe's pro desk and ordering a lumber package for an entire house. The lumber yard is definitely the way to go in that situation.
Bottom line, which I think we're all in violent agreement about :) ... materials procurement is a complicated game of strategy and the "right" answer varies from job to job, material to material, business to business, and town to town. Just look at the debate we're habing over lumber - thats just one material and we've barely scratched the surface. OP needs to compensate their contractor in some way shape or form for the time and expertise it takes to play "the game", or at least understand why many will be wary of the headaches that come with a customer who's trying to figure it out for themselves so they can save a few bucks.
Have never heard of anyone expecting a contractor to do a job for free, but I guess there's all types out there.
Lol, not free...what I meant was that a LOT of homeowners/investors want to buy/pay for the materials and then expect the GC to a) be there with their crew (on payroll) to meet the delivery trucks, b) inspect and sign for said materials, c) get their crew to unload and put the materials into the house/storage unit wherever, d) take responsibility and accept liability in case of damage or theft, e) Etc
This is a very common attitude for a homeowner because they (usually) have never run their own business and do not understand that a GC should be compensated for EVERYTHING.....
Many moons ago was doing a job for an investor who pressed he knew what he was doing, would take care of all materials, would have everything set for us.
Than the drywall truck showed up, with our 340 sheets. Investor is there to meet driver, signs for delivery, and driver says, "so, you got some more guys hiding inside because I'm not sitting here all day waiting for you to unload them" and investors eye's get real big and he just says "WHATTTTT....." and I couldn't help myself, I just laughed.
I had installers there, not labors. I refused to order them to do that kind of stupidity damage to their bodies, so I told em, if he wanted their labor, feel free to ask em for it.
The guys agreed, eventually, after about 4X rate labors would have been. And know what, I think he was lucky at that. Were talking 10,20yr experienced guys, they don't do that kind of labor. And I'm not Hercules nor dumb, or free.
I haven't read all the replies and comments on here so someone might have already suggested this.
I was mentored by a fellow BP member (https://www.biggerpockets.com/users/olus) to request Labor Only quotes from Contractors. Materials are handled by opening a Home Depot Pro account, and setting up Text2Confirm. My contractor goes to pickup whatever materials he wants himself, but checks out at the Pro Desk with my Phone Number. Home Depot Pro Desk texts me that the contractor is trying to checkout and lists all the items in their cart. I can do a quick review and make sure all the items correspond to what he is doing for the job. I reply by text to confirm the purchase and the transaction is approved and the materials are billed to me.
This might work for you.....
Great! How much do you pay your Contractor to go pick up materials for you? The shopping/loading/unloading/taking responsibility for everything? Just curious...
I would assume if you're a fair person, it would be about 20% on top of materials cost? If your Contractor is doing all of this for free, then you should fire them, because they're just stupid, and working with stupid Contractors will eventually get you in trouble........