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Jesse Buchanan
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Contractors versus running crews for fix and flips

Jesse Buchanan
Posted
A partner and I are in the midst of two fix and flips northeast of Tulsa and haven't been particularly impressed with the quality and speed of licensed contractors. For what seemed like a decent amount of money there were still paint drips on wood trim and other cosmetic errors that shouldn't have been made. My partner who's out there has shifted to running his own crews of labor to keep the jobs going.

Should I just keep trying out different contractors or does this just come with the territory now with prices and the scarcity of contractors?

Thanks,

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Bruce Woodruff
#3 All Forums Contributor
  • Contractor/Investor/Consultant
  • San Diego / Phoenix
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Bruce Woodruff
#3 All Forums Contributor
  • Contractor/Investor/Consultant
  • San Diego / Phoenix
Replied

You will find the good ones if you keep looking. I would suggest you guys do not run the jobs yourselves, it opens you to to huge liability. Unless you are going to do it legit and actually hire all the workers, get Workers Comp and all that good stuff?

For instance, as an Owner/Builder, you must pull the permits, and this instantly makes YOU responsible for the satisfactory completion of said permit, and you also must know applicable codes.

If one of your Subs has an employee that is not completely legit, then that falls on you as well, and you might not have even known about it.....!

Do you have state-legal Contracts, Change Orders and other forms all ready to go? Nope....

Here's a good read....

https://rhlaw.com/2012/12/18/the-perils-of-acting-as-an-owne...

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