How to establish a relationship with contractors and rehabbers

Question

How do you go about establishing a relationship with a contractor? Is it best to do this when you've already bought a property going into rehab, or before you have anything under contract? What is the extent of an investor’s due diligence when looking to work with a contractor?

Below are some things I've considered, but I'd rather get other's more qualified opinions:
1. Do I ask the contractor if they charge a fee for rehab estimates?

2. Are there any documents that should be signed to establish the relationship?

3. What things should be discussed upfront to promote and protect both parties interests?

4. Should this be a long term relationship or short term relationship?

What other questions are there that I should be asking? What am I not considering?

Ian Kee · Answer

It's a good idea to start meeting people before you have something under contract. Interview a bunch of different contractors so you get the feel for what the contractors in your area generally focus on. A good contractor shouldn't charge you anything for a bid. That said, if you constantly ask for bids but never give them any work, they'll probably stop showing up to do bids for you. Yes you should have a written and signed agreement with them as to what work will be performed, and how they will be paid. If you like their work and they communicate well, of course it should be a long term relationship! The more work you give them the better deals you'll start getting.

Daniel Harbuz · Answer

1. Do I ask the contractor if they charge a fee for rehab estimates? Yes they should bring it up. Some will be keen to do it for free but some charge as well.

2. Are there any documents that should be signed to establish the relationship? An order of work as far as budgets, expected work an time lines. You can also ad bonus and penalties for coming in over or under time estimates.

3. What things should be discussed upfront to promote and protect both parties interests?

Whatever is important to you. its probably helpful if you give an overview of what you are doing with the property so they can recommend materials and work.

4. Should this be a long term relationship or short term relationship? Up to you