Rehabber · Niantic, CT · Member since 2012 · 443 posts · 150 votes
Hi - I have a couple of templates but am not in love with any of them. Are there any samples here on BP or can someone point me in the right direction?
I'm looking for a good scope of work template that helps detail the work to be performed so there is little to nothing left out; and one that would detail the costs as well, plus, perhaps, milestones.
I'm finding that contractors will quote for an entire job, which is of course better than trying to give me an hourly rate ... but at the same time, how do I know what they're charging for different aspects? Ex: I'm embarking on a rehab that includes new windows, sheetrocking, painting, refinishing hardwoods, etc. I need to spell out milestones so we're clear on when the payments are coming, and I'd also like to know what each aspect costs me. If we have an unexpected expense, ideally I'd love to be able to point to another area of the rehab and tell the contractor to ditch that work b/c of this other cost that arose.
Second - maybe this would be included in the scope of work, but I'd also like to have the contractor sign paperwork that spells out that he/she is an independent contractor.
In my experience (at least how I use it), "substantial completion" generally means that everything is done, but it reserves the right of the client (you) to ask for additional fixes or repairs should you find out that something was missed, something was done incorrectly, etc. I'll generally make my final payment when the contractor finishes the job, and then have my project manager go through a full inspection check-list at the end of the project. I may ask the contractor to come back at that point if we find something wrong, but I won't make them wait until that point to get their final check.
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I think there is a significant piece missing to the "definition" of "substantial completion" as given in this quote. What's missing: permits must be closed, and all building code inspections must first pass of course. If a code official believes more work is needed to pass, that IS substantial IMO ...
The Appendix to the contract (which is also included there) has the Scope of Work. The one in that template isn't very complete, but should give you an idea.
Rehabber · Niantic, CT · Member since 2012 · 443 posts · 150 votes
13y
Great, thanks!
Question - I checked out your template, which I like. How do you agree upon what it means to have a "substantial" completion of exterior or interior work? My idea of substantial and my contractor's might vary.
Also, do you have a percentage in mind for the first payment? I'm wondering how you came up with the $800 initial payment on a $5800 job. I've heard some investors talk about paying for the first week's worth of materials and work, then laying out other milestones after that.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
13y
In my experience (at least how I use it), "substantial completion" generally means that everything is done, but it reserves the right of the client (you) to ask for additional fixes or repairs should you find out that something was missed, something was done incorrectly, etc. I'll generally make my final payment when the contractor finishes the job, and then have my project manager go through a full inspection check-list at the end of the project. I may ask the contractor to come back at that point if we find something wrong, but I won't make them wait until that point to get their final check.
For reference, some investors will hold back 10% until 2-4 weeks after work is complete, just in case any of these types of issues come up. I don't like that, as I don't feel it's fair to the contractor.
As for the upfront payment amount, it really depends on the work being done. For some things (and for some contractors), I'll pay everything at the end, for some things I'll pay for materials upfront and the labor at the end, for some things I may pay in daily or weekly draws, etc. Really depends on the work and the contractor.
If I remember correctly, this Scope of Work was for my main crew, who handle painting and basic repairs. For them, I'll pick a round upfront number that gives them enough to cover all their materials (paint, for the most part) and then break the rest of the job into two equal payments. Just how I do it with them now that we've worked together for a long time.
Rental Property Investor · Dallas, TX · Member since 2015 · 243 posts · 70 votes
10y
You are definitely on the right track to get all in writing. Templates may be available on BP-let me know if you find them. For me, I would enlist a property manager contact who does this frequently and request their form.
In my experience (at least how I use it), "substantial completion" generally means that everything is done, but it reserves the right of the client (you) to ask for additional fixes or repairs should you find out that something was missed, something was done incorrectly, etc. I'll generally make my final payment when the contractor finishes the job, and then have my project manager go through a full inspection check-list at the end of the project. I may ask the contractor to come back at that point if we find something wrong, but I won't make them wait until that point to get their final check.
...
I think there is a significant piece missing to the "definition" of "substantial completion" as given in this quote. What's missing: permits must be closed, and all building code inspections must first pass of course. If a code official believes more work is needed to pass, that IS substantial IMO ...