Why you must use a SOW
As real estate investors, we have all had a laugh or two about a contractor being on time. Deadlines are missed, deliveries late. How can you keep your project and contractors in line? One very important aspect of a successful flip is the creation of a Every project must have one, and if it is not done properly could cause you big delays and even bigger problems.
The SOW is the to be done during the life of a project, a written agreement that stems from your , specifies the end result sought by all parties, along with a detailed description of the resources required to finish the project or job. It is an essential part of the flipping house process
Importance of a SOW when Flipping
A statement of work sets the ground rules for all parties involved in a flipping project, especially when third-party vendors become involved. We have mentioned before that subbing out to contractors is our preferred method with rehabbing. The SOW becomes especially important during the implementation, monitoring, and evaluation of the flip. At anytime you can refer back to it in order to help refocus your team and/or and contractors.
It’s impossible to accurately predict the exact amount of time and resources necessary to complete a project. However, a statement of work can be crafted in such a way that it supports flexibility and evolution for both the project and the team’s participants. When a SOW contains statements of purpose and scope with detailed descriptions of the desired end result and the resources deemed necessary for completion, it keeps the project flowing smoothly. should reflect the agreed price of the project, any contingency plans, and penalties for failing to reach specific milestones. Lastly, the SOW should identify the dates and times of all significant events that will occur like project kick off and expected completion.
A SOW will become the baseline level of communication for all parties involved in a project. Be sure to ger your contractors to sign off as well. Should a project evolve beyond the original statement of work, referring to the core SOW can help with amendments.
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