Contract for GC flipping a house

[Michael J.]

Does anyone have a solid contract they would care to share for flipping a house using a GC?  One that favors the owner more than the GC?

[Scott E.]

If you're getting into flipping houses, you're really getting into team building. You shouldn't be looking for a contract that  "favors" anybody. Instead make sure the contract is fair to both parties from day 1, and that expectations on pricing, draws, change orders, etc are all very clear.

[Bruce Woodruff]

Yeah, you don't want a contract that 'favors' the homeowner...that might even make it an illegal contract. 

1) Just make sure you have a very clear SOW (Scope Of Work) that identifies every nuance of the project so there is little room for misunderstanding down the road.

2) Make sure that the contract has a payment schedule identified (in the contract) with specific guidelines for payment. None of this 30% in advance, 30% after framing stuff....

3) Make sure that you use COs (Change Orders) to clearly identify what the changes to the contract are, what they cost, the new total contract amount, and the additional time extension caused by the CO.

[Will Barnard]

Quote from @Michael J.:

Does anyone have a solid contract they would care to share for flipping a house using a GC?  One that favors the owner more than the GC?

 I certainly hope the GC’s you attempt to hire don’t read this post, they won’t work with you. If you have a one sided contract in this industry, it will not work out well for either side, why would anyone want that?

Each contractor will have their own contracts for you to sign and you should make yourself familiar with items that should and should not be in each. The contract should protect EACH party involved.

SOW, draw schedule, and a time schedule should certainly be included. I also recommend instituting a penalty to contractor for work performed late (beyond permissible delays) and a bonus to contract to finishing early. When you flip, time is money.

[Bruce Woodruff]

Quote from @Will Barnard:

I also recommend instituting a penalty to contractor for work performed late (beyond permissible delays) and a bonus to contract to finishing early. When you flip, time is money.

As long as it goes both ways.....I've had so many customers ask me if I would do a late finish penalty of $500 a day. I'd say "sure, as long as you'll do an early finish bonus for the same amount"........

Always crickets. :-)