Better Communication with Contractors
How to Communicate with Contractors
Important keys to reduce waste in time and money.
5 Factors for Contractor Success
Without question, if it is necessary to manage your contracting projects and not allow contractors to manage you.
A major issue in the investor experience with the fix and flip project is issues with contractors. Those that are conscientious and diligent in meeting deadlines, are sometimes in short supply.
When you have invested in property that requires rehab or needs some work, it is certain that you will be involved with a contractor
in some of these areas:
Electrical
Carpentry / cabinetry / flooring / windows
sheetrock / drywall
plumbing fixtures / piping
Painting
Exteriors / roofing /landscaping / gutters / chimneys, etc.
Pressure washing
and more...
Therefore, the relationship of contractor and investor is key to the success of the project.
However, it can be very difficult when certain problems like these show up...
Failure to communication
Unclear communication
Complete shut down of communication
Cross communications and misunderstandings in communication
Tendency to ignore or forget communication. hmmm
To have a fairly smooth and successful completion of your rehab project.
The investor, You will need to have daily, constant, and effective communication with contractors. If there is no reporting on
progress or no news, it is nearly always bad news.
1) Communicate, communicate, Communicate with Your Contractor.
You need to know what is happening, when it’s happening, what the costs and projections are, what the deadlines are, how closely the schedule is being adhered to, etc. If you don’t know, they don’t know, so start the conversation.
2) Show up at the site daily, you need to be Seen by Your Contractor.
Be a constant face on the job site. Show the contractor that you are hands on, that you will be there when you say you will and pop in unannounced to keep them on the job.
3) Regardless of the outcome, don't tell them their job
If you don’t want to get bulldozed by a contractor, return the favor and maintain a professional relationship.
You can assert your stance as a professional AND be flexible to their advice regarding the project.
That doesn’t mean you take every suggestion they make, but you should’ve accounted for appropriate changes
in the budget and schedule when applicable.
4) Have integrity
This is especially necessary to set up at the beginning!
For instance, if you’re going to use a draw schedule, make sure your contractor understands up front
how it’s going to work, when they will receive draws, how much, and what you are expecting.
Then, don’t deviate from your word once the work begins. Don’t promise to give more than you can,
and don’t give less without justification. Remember, this relationship goes both ways.
5) Inspect the work and Make Sure They Complete the Job!
There is little you can do to persuade a deceitful contractor to finish a job—and you probably don’t want them to!
If you’ve had a contractor abandon a job, your best move is to hire someone reliable to finish the job.
But, that’s not what I’m talking about. I’ve seen people make the mistake of paying the contractors when
they’re “done” without doing a final inspection check list.
This is your job.
Do a final walkthrough with a roll of blue tape and a notepad.
Mark up things like chipped paint, unhung towel bars, missing handrails, poorly done calking, or missing trim.
Even the best contractors miss things, so get in there, create a punch list, and get the items
knocked out as quickly as possible. Don’t pay the contractor’s final payment until this is all done!
Time is money.
We know this. Contractors know this.
If you want a job done well and ahead of the deadline, offer an incentive.
It is possible to build lasting, cooperative, mutually beneficial relationships with contractors that last for the duration of your investing career. Don’t get discouraged if you find a dud. Network with other investors and with multiple contractors. Connect with a mentor or coach when things get sticky. And, most importantly, keep going!
If you know what you’re doing, flipping a property can be an amazing experience that puts MONEY in your pocket.