CONTRACTORS FAIL TO FOLLOW SCHEDULES
Dealings with contractors. Whew!
I am sure there are plenty of stories out there as to how horrible some contractors could be. I am going to stress about one topic only, the schedule. It seems like many, YES MANY contractors do not get it. They do not understand that we investors need to get the job done quickly because we will lose money the longer the project sits. OH YES, we lose money when the job sits longer than it should. Some of us use banks or hard money lenders. You can already imagine what I am talking about.
THE SCHEDULE. Look at the illustration below.
In my opinion THIS is how a project schedule should look like. Some tasks could be stacked and some just cannot. This involves planning for sure. It is IMPORTANT that careful planning is made so that the project can move forward as smoothly as possible. I have not heard of a project that went without a glitch. This kind of project scheduling projection is what is needed to minimize delays and the path is laid out for all to be on the same page.
Look at the chart below. That is the WORST you can do with your project. Avoid it at all cost. It will cost you a bunch of money. Compare the 2 charts. It is obvious that the MULTI TASKING chart is the clear winner here.
WHAT SIZE OF PROJECT SHOULD YOU USE THIS?
Use this on ALL of your projects. Big or small this is very useful. It becomes more critical when huge amounts of money is involved. You do not want a slip up that could cost you millions of dollars due to schedule impact.
WHAT ITEMS/TASKS THAT YOU COULD MULTI TASK?
The rule is any task that doesn’t affect another that could be done at the same time. One simple example is one team is working on a deck while another team is doing inside framing. Keep in mind that each task will require an individual or a team. An example is you could have brick layers working on your outside wall while you have an individual scraping the popcorn ceiling. Laying brick is a job that could use a few hands.
WHEN SHOULD YOU DISCUSS THIS WITH THE CONTRACTOR?
Immediately. Before you sign that contract with your General Contractor. Now if you are the GC then you create the schedule and talk to all your subs and show them the timeline. You need to have this discussion right before work starts so each sub-contractor knows the schedule.
SHOULD I STICK TO THIS AND PENALIZE THOSE WHO SLIP?
This will be up to you. I believe you need to be realistic. Schedules will change. The purpose of doing this schedule is so that you make everyone aware that there is a deadline. Folks do well when there is a deadline and it keeps everyone on the same page with you (that is the goal at least). I personally do not like to penalize contractors. I have found that counter-productive. It night work for you.
WHAT KIND OF SOFTWARE TO USE FOR THIS?
You could research project management software that can go into more detail than simple scheduling. Using excel spreadsheet will do the trick. I like to keep things relatively simple. Most subcontractors like that too.
FINAL WORD – Try to use a schedule with your contractors. This will help you tremendously with your projects. Get your contractors input. Work together. It is best if you can get them involved and work it out. They will feel some ownership and will help you get the job done close to the projected project schedule. Good luck and happy investing.
Author : John Morey
Real Estate Investor, Decatur, Huntsville, Madison, Athens ALABAMA
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