Incentives/Penalties to keep Contractors on Schedule

Incentives/Penalties to keep Contractors on Schedule

Las Vegas, NV · Member since 2018 · 86 posts · 38 votes

BP members, I'm have a little frustration keeping contractors on a deadline in my fix and flips... Primary problem is dealing with the big box retailers installing new carpet. I have been rescheduled two times and not quite confident when this will get done and have been waiting 2+ weeks already.  I'm aware of liquidated damages clause or on-time bonuses but wondering if you any of you had success putting these clauses to good use in your contracts?  What incentives or penalties have you used to keep these contractors on task, even the big box retailers? 

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  • Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    8y

    It's not uncommon for investors to have penalty clauses the same way they have bonus ones.

    Also big box retailers are not necessarily the best place to get your materials and especially labor.

    They can definitely be good for some things but I wouldn't rely on them as a "one stop shop" kinda deal.

    I'd look for more local supply stores and subs/trades that can install without the big box mark up.

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