Hello BPs, I've spoken to couple of contractors who's quoting as much as price of an already built multi units. I can't go with someone with no name as I don't have bandwidth to spend every day.
As a developer, how much day-to-day involvement is required with the contractor? Is it even necessary if I go with good, reputed contractor?
Can you suggest any good contractors who specialize in building multi-units in the Philadelphia area?
@Ravi Chandra. This is what I wrote last week when you posted separately about accuracy of construction costs in Philadelphia. It seems you’re encountering the very obstacles I predicted….
I believe the biggest obstacle you will face is the need to rely on a 3rd party builder for a 4 unit building. Good general contractors, particularly those who build ground up must have financial means to advance projects outside of merely relying on your bank draws and construction knowledge. Most who possess both attributes recognize its more profitable to simply build for themselves which leaves very few qualified builders for 4 unit ground up projects and those who are truly qualified have to be incentivized monetarily to take on such a build which cuts into your margins. I previously relied on 3rd party GC's building quite a few single family to 4 unit buildings throughout Philadelphia and eventually transitioned to self performing. Most come to the same conclusion. I believe that will be a paint point for you and may be better to simply buy a recently constructed building where there's less risk and far less time involved. If you feel strongly about building, working with a good design team will be helpful.