Author Topic: Negotiating on (relatively) big housing renovation projects  (Read 1253 times)

lnofeisone

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Re: Negotiating on (relatively) big housing renovation projects
« Reply #10 on: May 02, 2020, 06:29:14 AM »
I have some apartments and have done all kinds of renovations over the last ten years. Since you donít know how to do the work or arenít interested in it, I would recommend hiring a midrange-expensive GC who you trust. More expensive is ok if they can actually deliver the results you really want.

It is extremely easy for a GC to take money, do nothing, and disappear. Itís also very easy for them to complete 80% of the job, collect final payment, and never come back. Do not make the final payment until itís 100% done.

All that being said, GCís are more than happy to charge you at a minimum 3x what itíd cost for you to do it. Probably 3-5x in bigger cities. The biggest reason I think they charge so much, is that most people donít know jack about what it actually costs or what is a good quality workmanship. You gotta know enough to avoid getting BSíd. Hopefully you know enough or have hired a trustworthy GC.

All that being said again, if you make more than maybe $40/hr, itís almost definitely better to hire a quality GC you trust and have it done correctly the first time. Itís gonna cost a lot more to do it twice.

I hope you can find a someone who can deliver for you and make your home comfortable for you and your family.

Thanks Morgan. The GC is middle of the three quotes we got. All prices that we were quoted are within range we got from other GCs and homeadvisor.com. Also happy to take any recs in DC area.


pbi

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Re: Negotiating on (relatively) big housing renovation projects
« Reply #11 on: May 07, 2020, 06:01:30 PM »
I work for a subcon, so we'd typically offer discounts based on invoice discounting. Cash is king for us so we'd typically be ok to shave off a certain % of our monthly claim if payments can be brought forward. If you have the cash on hand to undertake the work, this should be relatively easy to execute.

Look to see if they have something similar to what we call 'preliminaries'. This covers site specific costs like a PM's salary on a month to month basis. Tying bonus payments to early completion that are less than this figure can allow you to potentially shave off a month or so worth by bringing forward the completion of the job.

But most importantly, do your due dilligence on the GC. Experience suggests that the size of the discount is inversely correlated to  the likelihood that you'll hand it all back because of latent defects etc. If you have the budget for it look at hiring a QS/Superintendent to certify works. Alternatively, engage the QS and Super yourself and deal directly with the subs as this will save you the GC's margin less the costs to do so.

LounginMKL

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Re: Negotiating on (relatively) big housing renovation projects
« Reply #12 on: May 19, 2020, 10:19:22 AM »
I bought this book before our first major renovation. It explains a lot of the nitty-gritty details of managing GC/architect/other parties, from an owner's perspective.

https://www.amazon.com/What-Your-Contractor-Cant-Tell/dp/0979983800

I've since recommended to many of my friends who underwent renovations of their home.