Rental Property Investor · Minneapolis, MN · Member since 2023 · 4 posts · 1 vote
Hello all!
I am doing a 3rd unit addition to a duplex in Minneapolis, MN. I am wondering if there are any general contractor recommendations that anyone here has worked with?
I do have a couple companies already planning to submit a bid. I am hoping to have one or two more companies that are trusted bid the project as well. Any recommendations are appreciated and thanks in advance!
@Max Horn it is super important to get multiple bids and talk to multiple people on a project like this. There will be a lot of Contractors who say they can help with this, but not many can. Working with the city to add another unit is difficult, especially if you do not have that relationship. I suggest speaking with @Bruce Runn as he has done conversions in minneapolis. He is his own GC, but he may have a good list of contacts for you
Put it in your head, none are to be trusted. You and your contractors relationship should be crystal clear. Have all the proper contracts and protections in place. Trust alone will get you burnt.
I have a feeling your thinking by getting as many bid's as possible, some way some how that will lead you to picking the "right" one, and it won't, bid's are just that, bids. It means nothing of quality, time efficiency, experience, it's just numbers.
One should always start by vet'ing the co/contractor themself; what kind of work have they done, what's the quality, efficiency, warranty, when things went wrong they did ___.
Bid's are a LAST step in the process, after already identifying the 2/3 contractors one wants to work with.
The vast majority of persons I've known to have a "GC Nightmare" start the story with "I got bid's.... they had a great bid.... it was hell.". Do yourself a favor, don't make a # on paper your sole vetting process. FIRST vet the company, the operators, put in the work to make it's a good fit THEN work to get best price.
Like @James Hamling said, it's all about the way you select and vet your GCs. As we say all the time here, you need to verify their State Contr License, Liability Insurance, Bond, Worker's Comp first.
Then you can start requesting a couple bids. When you do get a Scope Of Work/Bid/Proposal, look at it carefully. Is it well written and extremely detailed? Every phase of the project should be covered completely and nothing left to chance. Then ask how they handle changes.....ask to see their Change Order process and paperwork.
Then and only then, ask for references, but be aware that no smart person will give you anything but great references, you will need to read between the lines yourself.
And finally, trust your gut....do they show up on time for meetings? Do they seem smart, well-spoken, honest, no BS kinda guys?
Here is some info from a post I just made on another questions. It can give you some things to discuss with your Attorney and your Insurance Agent.
"We insure a lot of contractors that do work in NYC. Some of the requirements we see from the Building Owners, Property Managers, and General Contractors are:
1. Required coverage: General Liability, Business Auto Liability, Workers Compensation and Umbrella Liability. Depending on the profession, they may also require Professional Liability, Environmental coverage, etc. Depending on when the improvements (build out, HVAC, etc.) become your property, an Installation floater could also be required. Lastly, some larger jobs require a performance bond from the contractor.
2. Typical Limits for the General & Auto Liability are $1,000,000 per occurance. Workers Comp. limits are statuatory. Umbrella limits vary between $1mm and $5mm ($5mm is becoming more common)
3. other clauses/requirements. Contractor is required to:
a. Name the Owner, GC, etc. as an additonal insured
b. some ask for 30 day notice of cancellation
c. Contractors Insurance must be Primary & Non-contributory
d. Generally they require the Contractors coverage to waive subrogation
4. In the contract is generally language requiring the Contractor to Indemnify and Hold Harless in favor of the Owner/GC/other. I have seen contracts the require the Contractor to maintain Insurance for 3 or 5 years for specific coverage (ie. Completed Operations)."
Discuss with your Attorney, what documentation they would want to see if they had to sue the contractor. You may never need it, but it pays to have that info if needed.
@Max Horn it is super important to get multiple bids and talk to multiple people on a project like this. There will be a lot of Contractors who say they can help with this, but not many can. Working with the city to add another unit is difficult, especially if you do not have that relationship. I suggest speaking with @Bruce Runn as he has done conversions in minneapolis. He is his own GC, but he may have a good list of contacts for you