Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Land & New Construction
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 6 years ago on . Most recent reply

User Stats

912
Posts
107
Votes
Patrick Philip
  • Florida
107
Votes |
912
Posts

Looking for advice for Home Building Contracts with GC's?

Patrick Philip
  • Florida
Posted

I have done some flips, but never a new home build. I'm doing my first one with an "owner-builder" so pulling the permit is not an issue (I know how to do all the paperwork stuff).

In the future, if I need a GC to pull the permit, I would like to still have the option of firing him from the job if things don't go well. I would want full control over what subs are used. And if he's not willing to do that, I want to make sure that he's going to stay on schedule with a heavy penalty for getting behind schedule. Also, I would want a lot of retainage left that he will get only on 100% completion.

Am I being realistic here?

I wouldn't mind just paying someone to sign the permit, and then handling everything myself to be honest.

Most Popular Reply

User Stats

4,756
Posts
4,407
Votes
Greg Dickerson#2 Land & New Construction Contributor
  • Developer
  • Charlottesville, VA
4,407
Votes |
4,756
Posts
Greg Dickerson#2 Land & New Construction Contributor
  • Developer
  • Charlottesville, VA
Replied

@Patrick Philip I don't think you will find a GC to agree to all of your terms. Especially the penalty clause. Thats very unusual for residential construction. Also it is a violation of contractor law in most if not all state for a GC to pull a permit for you without otherwise being involved in the project. A GC can act as a CM and pull permits and oversee the project with you in control and you paying all bills directly but you will need a CM contract with them.

Best thing to do if you want to use a GC turn key is to find one that does the type of homes you are looking to build. Make sure they have been in business for 5 years or more, check with current and past customers and make sure to check some of their current job sites. You can tell a lot about a GC by the way his sites look and how many subs are on the job.

For contracts you can check out NAHB, AIA and DBIA for example contracts as well as local attorneys who specializes in real estate and construction law.

Loading replies...