Any general contractors in this group?

Question

Trying to get a second opinion on a rehab for rental.

Thomas Franklin · Answer

@Donte Rome I suggest that you interview, at least three General Contractors and ask the following questions. In addition, I strongly recommend that you verify all licenses and Insurance Policies.

1. How many homes have you rehabbed and/ or renovated? What was the magnitude, of your projects?

2. How many projects is your company currently undertaking?

3. Do you work with Investors that need to adhere to strict timelines and scope of work?

4. Do you have multiple Sub Contractors, for similar trade skills, such as plumbers, electricians, flooring crews, painters, etc.?

5. Would you be willing to provide a copy of your GC License, your Certificate of General Liability Insurance, and your Certificate of Workman's Compensation Insurance?

6. Are you bonded?

NOTE:

To be “bonded” means the Contractor must purchase a Surety Bond, which serves as a form of Insurance to protect the Contractor’s Customers if he or she fails to complete the job properly or fails to pay for permits, subcontractors, or other financial obligations.

7. Are all of your Sub Contractors Licensed and have Workman's Compensation Insurance? Would your Sub Contractors be willing to provide such information, or would you be willing to sign a waiver stating "All your Sub Contractors have Workman's Compensation Insurance?"

8. Do your Sub Contractors have the ability to verbally communicate, with English Language Only Speakers?

9. Do you pull all necessary permits?

10. Do you provide a written warranty, for all labor? If so, what is the length, of the warranty? (a minimum of 1 year)

11. Do you provide all applicable warranties, for materials?

12. Who is in charge of the job site, to ensure timelines are met and the Scope of Work is properly completed?

13. How do you handle dirty work such as debris disposal and clean up?

14. Would you be willing to receive four draw payments that would correspond to four phases of the rehab project?

15. Would you provide references, from past clients?

Bruce Woodruff · Answer

I'm your huckleberry. PM or post your questions. There are a couple others as well....

Thomas Franklin · Answer

@Bruce Woodruff Thank you. You are absolutely correct. I did not want to overwhelm @Donte Rome, with too much information and have him miss important aspects that I was trying to convey. With that said, I will provide the following supplemental information.

If the General Contractor that you are interviewing does not provide you their GC License, their Certificate of General Liability Insurance, and their Certificate of Workman's Compensation Insurance, this should be a Red Flag, for you telling you to move on to another GC.

If the General Contractor that you are interviewing does not give you specific answers, to the other questions, this should be a Red Flag, for you telling you to move on to another GC.

You should contact their Insurance Company and verify all Policy information such as, but not limited to the Policy Number, Coverage Limits, and the policies’ date of expiration. In addition, you should also visit your state’s Department Of Business And Professional Regulation and check the GC’s License that it is current and valid. You should also check, if any complaints, liens, lawsuits, etc. have been filed against their license. Vet! Vet! Vet!

Bruce Woodruff · Answer

Maybe post some pics? Give us an address? How else are we supposed to give an opinion?

Be careful in 'just doing a demo'...you can open up a lot of boxes with the City re zoning and planning. You may not be able to build it back like you think. Codes and ordinances change a lot and you will have to comply with the new ones.

Mark Van · Answer

@Donte Rome Did you find any contractors for your rehab project? I'm Looking also having trouble...

Thomas Franklin · Answer

@Bruce Woodruff We can keep adding and adding items, to a “List Of Things To Do.” I was just trying to get @Donte Rome through the Initial Vetting Process. In addition, to the Scope Of Work, the project should be broken down into phases where each Line Item, in each phase has a starting and ending date assigned. The contract should also include “Performance Clauses” such as x% will NOT be paid, if the project is not completed, on the agreed to date. A good GC will always factor in a Cushion Time, to the date of completion, for “what ifs.” These “what ifs” occur 99.9%, of the time.

Bruce Woodruff · Answer

Good advice @Thomas Franklin, I would just not ask if they are 'willing to provide' proof of insurances....I would demand to see all of this paperwork before signing a contract.

Donte Rome · Answer

agreed. I have a post in those groups as well so I will wait on them to respond.

Patrick Knapp · Answer

@Donte Rome

What do you want?

Andrew Postell · Answer

@Donte Rome if you know what you need but just need it in your area then try some local real estate meetup groups.  Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too.  Even facebook might have some good local groups for you.  But post locally for this.  That’s the best bet.

Any general contractors in this group?

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