[This is the Special Report 32 in Adobe Acrobat (PDF) format. Our
electronic products download immediately to your computer upon
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.
- 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
- 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:
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.
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.
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
Sample Reader Tip Excerpts:
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
Jody & Andrew P.
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.