How to Recruit,

Manage, and

Pay Contractors

CONTRACTORMISCONCEPTIONS

CONTRACTORHOW CONTRACTORS

SEE YOU

vs. REALITY

EVERY CONTRACTORIS AN EXPERT

vs. REALITY

THEY WANT TO HELPYOU OUT.

THEY WILL DO A GOOD JOB WITHLITTLE TO NO OVERSIGHT.

A HANDSHAKE IS AS GOOD AS A CONTRACT.

HOW TO RECRUIT

CONTRACTORS

ON THE LOOKOUTALWAYS BE

Trades: (Easy to Find)

Roofers

Siding/Exterior

WindowsHVAC

Painters

Carpet/Flooring

Trades: (Harder to Find)

Concrete/FoundationFramers

Electric (unlicensed)Plumber (unlicensed)

Trades: (Very Difficult)

Electrician (licensed)

Finish Carpenter

Plumber (licensed)

Others you might need

General Laborer ($15/hr)

Skilled Laborer ($25/hr)

Unskilled Labor ($10/hr)*

Target is $200-$250/day

REFERRALS

BUILDREALTY.NET

CRAIGSLIST

VEHICLE ADS

HOW TO MANAGE

CONTRACTORS

MUST-HAVES

Budget

Work Breakdown Structure

Schedule

YOUR BUDGET

Only as detailed as you need

Don’t overthink it

Keep it simple!

WORK BREAKDOWNSTRUCTURE

Provides an overview

of the entire project

Non-chronological

Consists of Individual Work Packages

sometimes called “Scopes”

1

2

3

4

Co

ntr

ol

Acco

un

tsW

ork

Packages

Demo

1.1.3

Landscaping

1.1.4.1

Ext. Carpentry

1.1.4.2

Interior Trim

1.1.5.1

Interior Handrails

1.1.5.2

Rough Plumbing

1.1.6.1

Final Plumbing

1.1.6.2

Bathroom Tile

1.1.6.3

Rough Electric

1.1.7.1

Final Electric

1.1.7.2

Prestige Properties Rehab Projects

Demo

1.1.3

Exterior

1.1.4

Framing &

Carpentry

1.1.5

Plumbing &

Bath

1.1.6

Electric

1.1.7

Elm 123 - 2015.3.1

ORGANIZE YOUR REHAB

USING WORK PACKAGES

They function as “mini” jobs

with their own resources and

time frame.

Rough Plumbing

1.6.1

budget: $1,000 time: 2-3 days$

RESOURCES

Labor

Bob Schiff - 513-555-1212

($650)

Materials

- shower body ($125)

- rough plumb pkg ($50) x 2

- tub ($110)

SCOPE OF WORK

Hall ½ Bath

• Rough in sink supply

• Rough in sink drain

• Patch plumbing

Full Bath

• Rough in shower body

• Set tub

• Rough in sink supply/drain

• Rough in toilet

STAYING ON SCHEDULE

This week

Next week

Beyond next week

A TYPICAL WEEK

Planning, Pick up Materials,

Meet with Subcontractors

Make sure subs showed up

Check on progress

Weekends

Thursdays

Mondays

Fridays Final check of work, release

funds

3 Keys to Managing Contractors

DELEGATE EVERYTHING

3 Keys to Managing Contractors

FOLLOW UP

3 Keys to Managing Contractors

GET IT IN WRITING

IF IT ISN’T WRITTEN DOWN, IT DOESN’T EXIST.

HOW TO PAY CONTRACTORS

Payment terms should be stated

clearly in the contract.

Avoid “time and materials.”

Have a defined completion date.

Never pay for work that hasn’t been completed.

Download free contracts at Buildrealty.net