What is the norm to get a scope of work from a project manager?

Question

I’m under contract for my first house flip and using a hard money loan, which requires a scope of work. I had a general contractor walk the house with me, but I haven’t received a response after a few days. I found another gentleman who is more of a project manager, who isn’t licensed and has been having subs visit the house to get me a bid. He seems diligent, but it’s taking longer than expected. How long does it usually take for a bid? I went under contract on Friday afternoon and walked the house with the project manager on Monday morning. I’m nervous because I have a time frame for the purchase agreement. I can’t close in 15 days; that’s my first mistake!

Bruce Woodruff · Answer

I don't know what the PM guy has going on...is he working for himself or you, or who? He won't work for free, that's for sure.

I would stick with finding a good GC and let him develop the SOW with you. Go back and forth on it a few times to get it as comprehensive and detailed as possible...this will avoid issues later on in the project.

To develop a good SOW should take only a few days or 2-3 meetings. To get that transferred to a solid budget/bid could take 1-2 weeks ....they have to get subs out to give them a solid number and then compile all this into a contract document that makes sense to everyone.

As the others have said - this is critically important! Take the time to find a really good GC and make sure that your SOW/Proposal/Contract are rock solid and define every detail of the project. PM me if you need any help.

Best of luck!

Jonathan Klemm · Answer

Hi there @Irma Leibas - Well first off congrats on getting under contract for your FIRST FLIP! Amazing!

Finding the right partner GC will be the most important thing you will do on this project - PLEASE do not rush this process and thoroughly vet your contractor. This PM person, does he have a business, or is this some side job?

The more you can spoon-feed any contractor, the better and quicker you will get information back in return. I tend to agree with Chris regarding the scope of work; this should be something you have laid out clearly for them to understand.

We have several examples of SOWs we could share with you. Is the property in Hammond or Chicago area?

Irma Leibas · Answer

Thanks a bunch for all your responses! They’ve been super helpful in guiding me through this process. I know it’s all part of the learning curve, and I’m keeping my fingers crossed that things work out for the best. In the meantime, I’m going to dive deeper into references and take a closer look at the property, making sure I have a clear idea of what I want with the PM. Right now, I’m on the hunt for different types of contracts that might be a good fit.

Chris Seveney · Answer

Typically the scope of work would come from you on what you want done and the contractor will give a schedule of values based on that, or they give a bid and you write a scope to confirm the work. If you outsource it to a PM thats good but they will want to get paid for it.

Jonathan Klemm · Answer

@Irma Leibas No problem glad we could help.

When you say looking for good contracts, are you referring to the contract you will use between yourself and the subcontractors? I've got several contracts I could share (more specific to Chicago, Illinois, though), but it would never hurt to have your state-specific attorney review all the language.

Personally, I'd suggest finding a quality general contractor over a project manager. Unless your project manager is just going to hire a GC and he is just a secondary layer of protection for you.

What is the norm to get a scope of work from a project manager?

What is the norm to get a scope of work from a project manager?

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