Contractor Woes – Some Ways To Help Manage Your Crew
Time and time again we see and hear the same story… “The contractor came in, took our deposit, did some work, and never returned.” If you’re lucky, licenses and inspections department will complicate the situation 10-fold by showing up in the nick of time to put a stop-work order on the front door – At least, in Philadelphia, this seems to be a common tale.
There several ways to minimize your exposure to the aforementioned grief; however, the traditional methods of “showing your face” on the jobsite everyday just aren’t cutting any longer. We suggest a more formal approach to ensuring all your bases are covered…
- STEP ONE: Obtain references and a written proposal/signed contract from the contractor.
- STEP TWO: Obtain Permits and Proof of Insurance from the contractor.
- STEP THREE: DO NOT give a hefty deposit upon the signing of the contract or start date.
- STEP FOUR: Play an active role. Observe overall progress and visit the job-site at random times. More often than not, the general contractor is not on-site the entire time.
We have created a helpful form to organize the successful execution of projects and now REQUIRE this form to be filled out and signed by the contractor prior to the financing of each loan. Visit the related forms area of our website, and download the form entitled “PROJECT SUMMARY.”
You’ll never be able to cover yourself 100% of the time from a potential “fly-by-night” contractor, but you can take measures to protect your investment by doing your due diligence and not focusing solely on the “cheapest” quote out there.
For more information on this article or to hear how our loan programs might be a perfect fit for your next investment property, contact ushere.