All Forum Posts by: Sean Salandy

Thanks @Account Closed. I would feel better having a set price ahead of time. The only thing I was thinking was if I get a set price and the work ends up being less than the original quote, would the contractor let me know of the savings or would he stick to the original price? On the flip side, if the work gets done sooner and I am paying hourly, then I could save money that way. I see how this could be dangerous though. As you mentioned, the contractor really doesn't have much incentive to complete the job on time or early. Unless the fear of losing the job or losing future jobs is motivation enough.

I am in the process of interviewing contractors and I have had several contractors offer to work/get paid hourly. They are basically saying I can pay for the materials and they will get paid for the work based on the labor hours. I will also pay any sub-contractors directly for their work (not hourly in those cases). This seems like it could either save me money or cost me more in the long run.

Has anyone used this method of paying contractors? If I do decide to go this route, how can I avoid having the courts or the IRS view these contractors as my employees? Also, does anyone have suggestions on setting up a contract to have the contractor sign to ensure I am protected in case the work is not being done in a timely manner, quality, etc.? Thank you in advance.

@Brian Tome Excellent! Thank you. I will be sure to contact him. 

@Brian Tome thanks for the response. I have a few contractors that have come out to look at the house. I am waiting to get the bids back from them.  This will be a renovation. Split level 2br with possible 3rd br in the lower level. I plan to make it a 3br.  2 bath. I plan on doing the following:

• Laminet floors in the living room hallway bedrooms. 
• Tile in the kitchen and bathrooms
• Brand new kitchen including cabinets. 
• Brand new bathrooms 
• Paint all rooms (2-tone)
• Frame a new laundry room in lower level 
• New light fixtures

Mostly cosmetic work. Have you had success with contractors in the area?

@Account Closedthank you for the tips. I will be sure to use them in my evaluation process. I will be out early next week at Home Depot to do just what you suggested.  It's good to hear that you have moved on to such large deals. I hope to do the same. 

Can anyone recommend a good General Contractor for a single family home in Elkton, MD?

Thanks

Also, should I expect the contractor to create the contract based off of my SOW or should I draw up the contract?

I am preparing to meet with contractors for bids on my first flip. What should I bring to these meetings? A final draft of my Scope of Work? If so, should it include actual product names and SKU numbers and retailers? Should it include a floor plan? I'm just trying to make sure I'm prepared for the meeting and focusing on the right things in the right order.

Thanks!

@Robin Hasnain This is true. Thanks for your insight. 

@Robin Hasnain Besides the obvious reasons (profit) I wonder why investors use laminate on flips then.