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Special Report 32: Ideas if you use a general - Electronic Edition

Special Report 32: Ideas if you use a general - Electronic Edition
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Author: Mark A. Smith
[This is the Special Report 32 in Adobe Acrobat (PDF) format. Our electronic products download immediately to your computer upon purchase.]

Features contract advice if you decide to use a general contractor. Especially valuable are many reader experiences and comments included that could save you money and heartache. Six pages, revised and updated with new tips and comments.

Topics Include:

  • GC's as framers
  • Does general stand behind the work?
  • Are subs tied to generals?
  • Getting a contractor's license
  • Items GC's don't include in estimates
  • Builder magazines
  • Hassles
  • Contracts and legal safeguards
  • Underbidding and no-change clauses
  • Use of a project manager
  • How cost-plus works
  • What are percentage fees based on?

Excerpt from Report:

"...You decide what you want for yourself. You are under no obligation to accept a contract bid arrangement from a general. You are in the driver's seat and you call the shots, even if it takes passing over several builders until you find the one you can work with.

Contract Bid

In any case it is good to permit the builders to estimate your project in the normal way, where they estimate the costs in a contract bid. With cost estimates in hand you can reflect on the best way to proceed.

Cost-Plus

You could then turn to a cost-plus arrangement where you pay the costs directly for the subs and materials used. If the costs come out to $200,000 and you have agreed to a ten percent fee, you pay $20,000 to the contractor at the end. Review the discussion on cost-plus in Chapter 3 of the book to understand why this is not a high savings approach..."

Sample Reader Tip Excerpts:

"We hired a general for the addition we did, but after that we managed our own subs. Flat roofed block framed house. $70,000 expense. We've learned a lot. Next time we will sub everything. We learned a lot about selecting the proper people. You have to take your time more, and get more bids."
Jody & Andrew P.
Scottsdale, AZ

"You can't look in the phone book for framers. Contractors are the only ones who do framing where we live. You can't look in the yellow pages for that. We know they will add overhead to it, but we have no choice. We will contract out foundation, walls, and roof to generals. I?m getting bids from four or five of them on that now. The rest we'll sub out. My husband is in the trades and so he knows the generals that he likes. We found a couple of guys who could frame on a moonlighting basis. Only problem about the bids is that we put out our bid packages to four or five contractors three weeks ago and nobody responded yet."
Eric & Jille E.
Roosevelt, UT

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