All Forum Posts by: Dan Nikolich

@Dan Nikolich…I’ve found the best way to see if the Contractor/Customer are right for each other is to have a meeting on an existing job. This takes less time away from the company and allows many of the questions from the customer to be answered without even having to ask. Quality of work, condition of tools and job site, examples of finished work, type of people the company employs, etc.

I’ve been on both sides and over the past few years have been building a small, investor focused maintenance and construction company and I very rarely don’t wind up doing business with another investor once they stop by one of our jobs and visit with us. As a contractor it allows me to see how the potential customer handles themselves (being prompt, navigating a job site, interacting with my guys, etc) and also starts to set the tone of the experience we would have if we work together and potentially eliminate surprises. It also lets them see the types of finishes we use and usually leaves them with a sense of comfort and some initial trust in us to do right by them given what they can see within a 20-30 minute visit.

Here's the questions I generally ask a new contractor that I've never worked with before:

What Are The Contractor's Qualifications?

​​This one is misleading because the company could be new, but the contractor could have 10 years of experience, so be sure to find out how much construction experience the contractor has in the industry.

​It's important to find out the scale & scope of work for the Contractor's typical project. Does the contractor typically only work on small bathroom remodels or are they qualified to manage a full rehab project?

Will the Contractor be self-performing the work or hiring other contractors to perform the work? It's important to understand who will be performing the work on your project and making sure that the subcontractors your contractor are utilizing are qualified, licensed & insured as well.

Does The Contractor Have A Portfolio Or References?

Ask your Contractor if they can provide a portfolio of past projects that highlights the Contractor's quality and craftsmanship. Your Contractor should be able to provide marketing materials or a link to their website where you can see photos of their completed projects.

Check for reviews online for your Contractor to see what other past clients are saying about the Contractor:

• Google Reviews
  
• Facebook Reviews
  
• Thumbtack/Houzz/Angi
  
• Better Business Bureau

What's The Contractor's Availability?

​Ask your Contractor what other projects they currently have going or planned during your project to understand how your project will be prioritized.

If your Contractor does have multiple projects going at once, find out how many employees they have and ask if they have enough manpower to staff your project. You should generally have at least 1 or 2 workers on-site everyday in order to keep your projects on-schedule. (No lost days!)

Find out when the Contractor can start the project and discuss the time frame the contractor estimates it will take to complete the project.

How Does The Contractor Handle Unforeseen Issues Or Change Orders?

When rehabbing houses, unforeseen issues are going to inevitably happen on your projects, which can often arise in arguments, conflicts and change orders. The way that you and your Contractor manage these issues are essential to maintaining a strong working relationship, staying on-track and on-budget.

1. What is the Change Order process?
   
2. How are Change Orders communicated and agreed upon?
   
3. How are Change Orders priced?

Is The Contractor Licensed And Insured?

For certain trades and scopes of work (generally Structural, Plumbing, HVAC, Electrical) you will need to hire a Licensed Contractor to perform the work. In some areas, your General Contractor and Subcontractors will need to be licensed in order to pull permits for the project. Check your local building department to determine which Contractors need to be licensed on your projects.

Always make sure your General Contractor or Subcontractors working on your project have their own General Contractor Liability insurance. The insurance should cover:

1. Bodily injury to you, your family or visitor's of the property.
   
2. Any accidental damage to your property.
   
3. Workman's compensation for injuries to the contractor's or subcontractors employees.​

Has The Contractor Ever Had Legal Issues?

1. Does the Contractor have any legal judgements, lawsuits, or arbitration proceedings pending or in the past?
   
2. Has the Contractor filed a Lien on a property?

Here are some questions I commonly ask my Ohio Contractors

1. Do you have pictures and references for your work?

2. Do you have a working agreement, what will draws be like?

3. Do you have a reliable crew or do you subcontract?

There is always another deal out there!

so dont chase a deal just to win it and end up losing any profit, don't waste time or energy dwelling on deals you missed.

Always remember your role is to be the quarterback of the entire project from the due diligence on the front end, to managing the rehab and then to managing the agent, lender, and closing company of the buyer on the backend. NEVER assume that everybody is doing their job, trust but verify. 

I was very naïve in the beginning but my mentor taught me to take control of situations, even if that means calling/texting someone that is involved in the deal once a day for 30 days straight (I have done this with a lender recently because the deal was being put on the back burner). 

@Dan Nikolich

Have a lot more money available than you think you need

Paying more for a good contractor upfront is cheaper than paying twice to fix the cheap contractors mistakes