What’s the Biggest Challenge You’ve Faced with Contractors?

Question

Post:
Hi everyone,

I’m a licensed contractor, and my main goal here is to learn about the biggest challenges investors face when working with contractors. I often hear about issues like:

• Delays in project timelines
• Going over budget
• Quality problems
• Poor communication
• Lack of transparency with costs
• Problems with permits or licensing

Delays in project timelines

Going over budget

Quality problems

Poor communication

Lack of transparency with costs

Problems with permits or licensing

But I’d love to hear directly from this community: what has been the most painful part of working with contractors in your real estate projects?

My goal is to collect these insights and try to build a system or approach that makes the renovation process more reliable, transparent, and profitable for everyone involved.

Looking forward to your thoughts and experiences!

Cheers,
Maksym Hrabets

Bruce Woodruff · Answer

Coming at this from a slightly different angle.....What is the biggest challenge with customers?

There are many good Contractors who still have a project go south....The reasons, in my experience, are usually one of these 3: 1) Changing the Scope Of Work, this will kill a project (and a relationship) quicker than anything 2) Micro-managing the project...y'know, hanging out on the jobsite all day long, then spending half the night there having a glass of wine with their friends and changing things, 3) Not keeping up with payments....an honest Contractor deserves to be paid promptly.

Just my $.02...

Maksym Hrabets · Answer

@Alan F.

Thanks for sharing this information, Alan. I really appreciate it — definitely something important to keep in mind here in California.

Maksym Hrabets · Answer

@Bruce Woodruff

Hi Bruce, thanks for sharing your perspective — it’s very insightful. I actually own a construction company myself and right now I’m gathering feedback from professionals and investors to better understand both sides and improve the quality of service we provide.

Your points about scope changes, micro-managing, and payment timing really resonate — these are definitely situations that can affect both trust and workflow. It’s helpful to hear this directly from someone with experience, and I’ll take it into account as I continue developing my business.

Appreciate you taking the time to share your thoughts!

Alan Asriants · Answer

Hey Maksym, dealing with contractors requires plenty of experience and trial and error. Small time renovations have their seperate headaches from larger scale ones.

Typically its best to control contractor with proper payment installments. Most contractors doing cosmetic rehabs dont have the best skills when it comes to budgeting, planning, etc. So they are always asking for money left and right. Typically this is a red flag and I never give significant upfront deposits unless it is a larger scale job. Contractors that don't ask for money up front are usually more confident in themselves and their budget.

I also leave enough pieces of the pie when a contractor is finishing up. For example if the labor cost is 10k, I'll leave at least 3k until they finsih all items on the punchlist. many people leave $500-1000 and thats not enough for the contractor to return.

BTW if you need a decent contractor in the LA area, I am happy to introduce you. He is solid and executes quickly. He has managed very large scale projects. Reach out anytime

Chris Howell · Answer

@Maksym HrabetsI’m an investor first, and I’ve been rehabbing my own properties for about 20 years. I’ll take on other people’s projects occasionally, but my perspective is always as an investor. The most important thing for me is trust—and that ties directly into price and time.

If you want to build strong relationships with investors, here’s what matters:

1. Be Fair on Pricing

I know what materials cost and how long a rehab should take, so if a bid comes in way too high, I know right away the contractor isn’t treating me fairly. A better approach is to give a bid you’re comfortable with and then offer a first-time discount—say 5% to 10%. Let the investor know, “I’d like to prove myself and show you I’m trustworthy, and I’m willing to take a small pay cut to earn that trust.” If you follow through on quality and promises, that discount will come back to you many times over in repeat work.

2. Honor Your Timeline

For me, the timeline is your word. If you promise six weeks, I expect six weeks. Even if it means you work late nights or weekends, you get it done. If your painter doesn’t show up, that’s not an excuse—it’s your responsibility to bring in another painter, even if he costs more, or grab a brush yourself. Investors hate when timelines slide with excuses. Hitting deadlines consistently builds massive trust and respect.

3. Be Straight on Materials

I usually bid materials plus 3–5% to cover the time of picking up and managing them. That’s fair—I don’t think it’s honest to mark up materials beyond reason. If I can get everything at Lowe’s delivered in a couple of hours, I don’t need to pad that cost. Investors notice when you’re being straight with them, and it matters.

At the end of the day, it’s not complicated: be honest and be reliable. Too many GCs only care about squeezing profit out of each job. If you put the relationship first, stay fair on price, and always finish on time, you’ll have more work from investors than you can handle.

Hope this gives you a good direction to build on!!

Chris Howell · Answer

@Maksym Hrabets

Here are my tips as an investor and as a contractor.  I believe if you stick to these points you will be great relationships with investors.

1. Be Honest and Respect the Budget

If you’ve been in the game long enough, you already know what it costs to rehab a property. Don’t come back with surprise increases after the project starts. Nothing kills trust faster than shifting numbers. Stick to the budget you quote.

2. Stay on Schedule

Time is money for investors. Delivering work on time—or better yet, ahead of schedule—sets you apart. Efficiency matters, and if you consistently beat deadlines, most investors will happily pay you a little more because they know you won’t cost them holding time or missed rent.

3. Make Investors a Priority

Even if their job is smaller or one of several you’re running, don’t push them to the back of the line. If you miss their deadlines, they’ll move on to someone else. Reliability beats size every time.

4. Come in Under Budget

If you can deliver quality work for less than you estimated, you’ll earn instant trust. Investors will know you’re not inflating invoices or adding fake repairs just to squeeze extra money. A contractor who saves them money will always get more work and steady checks.

5. Handle Unseen Issues With Integrity

Unexpected problems happen. How you handle them determines whether you get called again. If you miss something during the bid, own it. For example, I once re-roofed a house where hidden layers of shingles and extra decking added unexpected costs. I told the investor I’d cover the extra labor if they bought the decking. They offered to pay anyway, but I stuck to my word. That small loss earned me their trust, and they hired me for multiple projects after—where I made far more than I gave up.

Maksym Hrabets · Answer

Thanks for sharing your perspective — really solid points. I’m curious to learn more from your experience.

If you don’t mind me asking:

• In which state do you usually work with investors?
• Do you have any benchmarks on pricing for common projects (like flooring installation, painting, or basic rehab work)? I’m curious whether you position yourself below market, above market, or right at the average — and how that affects investor decisions.
• From your experience, what matters most to investors when choosing a contractor: strictly price, speed, or the trust that you’ll handle surprises fairly?
• Also, if you have good supplier contacts for cheaper materials (like kitchens, flooring, etc.), how do you usually handle that with investors? Do you pass the discount on to them, or do you keep your labor price lower and earn from materials?

In which state do you usually work with investors?

Do you have any benchmarks on pricing for common projects (like flooring installation, painting, or basic rehab work)? I’m curious whether you position yourself below market, above market, or right at the average — and how that affects investor decisions.

From your experience, what matters most to investors when choosing a contractor: strictly price, speed, or the trust that you’ll handle surprises fairly?

Also, if you have good supplier contacts for cheaper materials (like kitchens, flooring, etc.), how do you usually handle that with investors? Do you pass the discount on to them, or do you keep your labor price lower and earn from materials?

Your approach sounds very professional, and I think it would be valuable for many contractors here to understand how you’ve built it.

Alan F. · Answer

Be particularly mindful of Business & Proffessions section 7159, very few investors (especially on this forum) understand that T&M remodeling contracts are not legal in California. The CSLB is very strict on this.

Maksym Hrabets · Answer

@Alan Asriants

Hi Alan, thank you for sharing your experience — it’s really helpful. I actually own a construction company myself and right now I’m doing some research to better understand the needs and expectations of clients in order to improve the quality of our services.

Your point about payment structure and leaving enough at the end of the project is very insightful. Feedback like yours helps me see things from the investor/agent side as well, which is extremely valuable.

Appreciate you taking the time to write such a detailed answer!

What’s the Biggest Challenge You’ve Faced with Contractors?

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