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Updated almost 5 years ago on . Most recent reply

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Nathan Frey
  • New to Real Estate
  • Atlanta, GA
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Contracting / Contracts - Rehab and Renovations

Nathan Frey
  • New to Real Estate
  • Atlanta, GA
Posted

I have a background in commercial construction & development, so when thinking about renovations or repairs, my mind often shifts to negotiating contracts with general contractors and vendors.  However, I know it's different in the residential world.

Is there a good rule of thumb as far as how formal or detailed to get with a contract when working with a handyman, general contractor, tradesman, etc.?  Of course I know the more tricky, large ($ and scope) and risky the project is the more important this gets, but really just looking for general guidance from those that have executed both large and small scale renovation or rehab jobs on single family up to perhaps quadplex properties.

Also, would you recommend working with an attorney upfront to create a "boilerplate" contract you can use with all contractors (assuming they all agree to the same terms)?  I know it's an upfront cost / investment doing this.  If there's a source for contracts that is recommended (by state), that would be very helpful as well.

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Greg Dickerson#2 Land & New Construction Contributor
  • Developer
  • Charlottesville, VA
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Greg Dickerson#2 Land & New Construction Contributor
  • Developer
  • Charlottesville, VA
Replied
Originally posted by @Nathan Frey:

I have a background in commercial construction & development, so when thinking about renovations or repairs, my mind often shifts to negotiating contracts with general contractors and vendors.  However, I know it's different in the residential world.

Is there a good rule of thumb as far as how formal or detailed to get with a contract when working with a handyman, general contractor, tradesman, etc.?  Of course I know the more tricky, large ($ and scope) and risky the project is the more important this gets, but really just looking for general guidance from those that have executed both large and small scale renovation or rehab jobs on single family up to perhaps quadplex properties.

Also, would you recommend working with an attorney upfront to create a "boilerplate" contract you can use with all contractors (assuming they all agree to the same terms)?  I know it's an upfront cost / investment doing this.  If there's a source for contracts that is recommended (by state), that would be very helpful as well.

The more detailed the better. Not overly complicated but detailed especially in regards to the scope of work, payments, insurance and time frames. You can get a simplified template contract and modify it for your purposes from a local attorney who specializes in construction and contract law in your state. There are also some sample forms to look at on AIA website but they can get a bit complicated for small scale remodel work.

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