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Hi guys,
I’m a one man show now for about ten years, had a partner for two years prior to that. I have been doing jobs in the PNW ranging from kitchens and baths, to whole house renovations–usually phased. I love old houses and am good with people, well-travelled, have a couple years of college, own a big old house, married with one kid–one on the way and enjoy my work. In the past years I have gotten in with some interior design folks, done some nice smaller projects–up to $75k; my niche. I am very good with people/clients and usually fit in well, practically becoming part of people’s families, usually professional folks and highly educated. Now I have an architect/friend calling me to help out some folks in a nice neighborhood renovate and do an addition on a 19th century home. They have a substantial budget. I am concerned that if they want to do all this work at once it may overwhelm me, vs. phasing it which would be more manageable. Normally I work fairly informally, offering little to clients in the way of timetables, flow charts etc. I plan on arranging a meeting with them soon to size up the situation and see if the fit would be good personality-wise at minimum. I am presently updating a photo portfolio and will add copies of insurance, bond and license. I am confident I can take on the technical aspects of the job, but know I’ll need help possibly taking on an employee and hiring more subs than usual so as to get things done in a timely fashion. These folks have two young boys and pets and will stay in the house, not move out.
I would really appreciate some advice on what points I should make, other than offering my warm personality, in order to win the job! I am very excited about this job and want to get it and yet am nervous.
Thanks!
Replies
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I believe you need to express YOUR CONCERNS to them and the architect not only the "minute you walk in their door" but at least one other time during the initial meeting and follow that up in writing in the same manner as your well written post here. The fact that there are two young boys involved here makes for extra precaution on your part (and their's) re leaving that loaded Paslode on the work table or similar "accidents waiting to happen". Young minds tend to be very curious - that I do remember.
I have been on both sides of a situation as you describe; as a homeowner four years ago and as a auto mechanic/mechanical restoration specialist twenty years ago. The craftsman I engaged to do the work on my house worked on his own but would bring in equally personable and semi-skilled help as needed i.e. laying in a 4 x 10 x 13' glulam in the kitchen ceiling.
*Hi Eric, know what you mean about the kids, dealt with it quite often at home and on jobs. On the last job I was often shocked to see the whole family running around the job site barefoot, kids included! It drove me nuts. I have talked to the architect already about some of the issues with the size of the project. I am also cultivating a friend of the family that builds on a larger scale to get some advice and coaching from him. Growing pains is the phrase that comes to mind for me right now. Also reading David Gerstel's book, "Running a Successful Const. Co." I appreciate your input Eric!
*BG's response brings up a memory. Don't let the family cat get into the walls or perhaps, air returns. They don't like that. If it's never happened, you've been lucky.And on an even more serious note, secure all means of injury/fall possibilities during the day and b/4 you go home. Plan an extra hour at the end of the day to police the site. This'll add some cost to the job, but is better planned for now and taken care after you start. Window openings and stair wells are an obvious and major concern. Don't be thinking or forgetting about them in your quest to finish b/4 dark. Boards with nails....you know the story, but it's easy to have a lapse in memory. Also, you are directly responsible for your subs and the way they leave the jobsite. Better figure and plan on that too. How the insurance pans out is beside the point. Best of luck and enjoy your new relationship. Do they bake?
*Well Big Guy, you're about to venture into the most risky of all construction projects. The dreaded family occupied home contract.The biggest pit fall is bonding to your client. The client's problems become your problems and you both lose sight of the original contract agreement.You can do the job, but after a while you won't remember what the job was.The larger home renovation companies send in crews to do the work and keep an arms lenght away from the client.You have to figure out how to do just that. Maybe an agent to do the negotiations on your behalf. Like the architect friend of yours.Give it some thought. It's not the work that's hard it's the human element.
*Big Guy,How big we talkin'! Ha Ha Good post. And...you're in trouble already!!! Just kiddin'!!!Its time for...da crew. That's what I'm sayin'!That equals the quantum leap. Get a good helper for openers. Hire by twos, a lead man and helper. Or as teams, better synergy. No odd man, and pissing contests. You have a helper and so does the lead man.Bag the warm 'n fuzzy stuff. And ask for a huge commencement payment. It takes alot of juice to get these things off the ground. Especially when the meter is ticking with multiple trades and employees.You sound great Big Guy and good luck to you and your family. Dan-O
*Big guy,Make sure you are very familiar with our current lead laws in this country as they relate to remodeling. Check with your insurance agent to make sure you have enough coverage in the liability area of your policy.If you hire people, make sure you get workers comp. AND find out how much it costs. If you're a one man show, you don't currently carry it, therefore it's not figured into your overhead right now and would need to be...in other words, your hourly rate would be going up.How are you going to know what to charge if you don't have anyone working for you now but plan to hire thenm prior to this job?Who will set the job schedule? You, the client or the architect. Is there a deadline involved? Will you honestly be able to meet it or are you being optimistic?Can your subs handle a bigger job like the one you're describing?How are you spacing your payments? How will the owners pay...financing? Out of pocket? Don't screw yourself with late draws. Make your payments "start-of" instead of "completion of" each major task. Let them finance their project.Make sure you're working with a good contract.Good luck. Big jobs can be a great cash cow, but they can also be deadly. You will also not be seeing as much word of mouth asvertising if you take on one big client vs. many during that same time frame. Just make sure you really think everything through before you put that down payment down on the new truck...
*Hi guys,You all have many good points in your posts. Believe me, I am warm and fuzzy, but have great and consistent timing in asking and receiving payment; one of my strengths--and these folks have money. Also, cleanliness, removal of safety hazards etc. no problem. My liability insurance is at $300k and I'm already resolved to go for a mill. I am not at all unfamiliar with supervising and hiring guys on jobs. I have four working on my house now off and on. My greatest concerns lay in paperwork, organization, scheduling, hiring vs. subs, having guys run through the books vs. "casual labor". I know I need to be careful and treat this differently than smaller jobs. Also, there are things that I'm not that good at such as stick-framing a retrofitted hip-roofed dormer, so I'd need to get some help with that. Lastly, I run my biz as a sole-proprietorship and I have some juicy equity that someone could go after so am thinking of incorporation and the big LLC vs. S-Corp. question.-----Dan-O, you are funny man!-----Johnny M your response is what I need to get real and not dream about easy money!---- Workman's comp here about $2/hr for interior and exterior work, $1/hr for interior only.I know what the budget is from the architect and also that there is extra for unforeseen things which in a 1889 house are a given.Another thing you guys are going to give me hell for, but I've got some reliable, skilled Mexican muchachos working on the house here and I'd like to use them for some things, but how far should I push this idea on a big job? They work hard and do good work on my 1908 restoration project here! How to pay them, injury issues, no green cards etc.? I don't want to dink around too much with this idea and create a problema, comprende?I'm reading Gerstel's book and gettin' some good information tonight....
*Big Guy,Like you, I work alone, mainly on older houses. Recently, I compiled much of what I've learned over the years in the book, "Working Alone".A lot of people assume that the building crew is the norm and people like you and I are unusual. Not true. Consider this information from the US Census of Construction: of the nearly half million "residential building establishments" in America (this does not include special trade contractors), about 70 % have no payroll. Of the companies with payroll, about 70 % have 1-4 employees. The reason so many builders are solo operators or have very small crews, is that the work has to be done in sequence and there's often only room for a couple of people to work safely on the same job at the same time.Even large construction outfits break their workforce down into small crews, often leaving just one person on the job. Last year, I was invited to speak at a workshop hosted by Remodeler's Advantage, a consulting firm. I was perplexed as to why I was invited to speak at this event because the theme for the workshop was "the lead carpenter system" and most of the attendees worked for very large remodeling companies. The main speaker was Timothy Faller, author of "The Lead Carpenter Handbook." By way of preparation, I read his book. Only after reading Faller's book did I understand how my book and my techniques fit into his system.Faller believes, as I do, that there is economy in the one-man crew. In his system, the lead carpenter is on the job every day, usually by himself. When the lead carpenter has to have help, carpenters and laborers are sent to the job as needed. In Faller's model, the additional help comes from within the company. In my business, additional help comes from the outside. Over the years, I've developed a good network of sub-contractors; I also know and work for several solo builders who return the favor when, at critical points in my jobs, I need their help. For the vast majority of the time, however, I'm on the job by myself.There's no doubt that having two or three guys on the job every day can save time. But does it save money? Both Faller and I say no, it doesn't. A better use of man hours is to bring the troops in as needed. As a solo entrepreneur, you should also consider the hassles and expenses that come with taking on employees.Finally, you should not assume that getting the job done as quickly as possible is a high priority for your customers. My customers are comfortable with my steady and deliberate pace (some would say snail's pace). The pressure to make decisions is usually extremely stressful for them and they are often pleased to have time to think these things over. I've found that their main concern is quality; as long as I make steady progress, they usually accept the disruption to their lives. Of course, it's vital to match my temperament and my goals with those of my customers. People who want it done quickly and cheaply usually don't call me (apparently my reputation as a moderately-expensive and plodding builder precedes me). If they do call, it's usually clear to me that it's not going to work a few minutes into the conversation. I turn down far more work than I take. One of the best things about working alone is that you don't need a lot of work to stay busy. This means you can pick and choose your customers.
*Big Guy - weigh the pros and cons. Remodelling a house while the owner is occupying it can be disasterous. You gonna have to take every precaution to prevent injury and damage. If it looks like rain, get tarps that can cover the whole house. Nothing like getting a phone call at midnight because water is dripping in to the house. Even though people say they don't mind the disruption, they will. People will get tired and annoyed of the dust and hassle, and will get impatient. Don't know where you are, but here in Westchester county, NY people who have alot of money tend to want things done right and right now! They have forgotten that certain things take time. Been down this road a couple of times with people who seemed to have been reasonable at first. Couple of months into the project, and it's q whole new ball-game. People get tired of coming home to disruption. The attitude changes.As for subs, my guys were great when we did new homes together. They too were gung-ho when we took on some major remodels (where the after looks nothing like the before!) One by one, they turned. None of them wanted to be responsible for anything. None of them would do the quality work we were all used to. Guess they got a little too spoiled doing the new construction. I eventually got out of the business (too much litigation, not enough money)I still kick myself for starting the remodelling portion of the business. Should have stayed in the spec-home building bit. Loved working with my hands (and power tools!)You loose sight of the part that got you into the business in the first place. You stop being a craftsman and turn into an accountant, lawyer, and auditor. The fun disappears. Hope my ramblings gives you some insight as to what can happen. Hope it doesn't for you. Hope you're successful at doing what you love to do. I wasn't-not because of quality but because of the rest of the #$%@ that comes along with being the boss.Good Luck!!!
*You've gotten a lot of good advice. I will second the idea that a small crew or one man is a good way to go. We rarely use more than three people on a job though we could bring in 10. Unless the house is huge there is simply not enough room. If you hire employees, use a payroll service and you will reduce that paperwork.Plan your schedule out for the entire job. This will take a couple of hours at least but if you do it in conjunction with estimating the job will only help you to be more accurate and will give you a chance to see how parts of the entire project will flow together. This thinking time ought to be a part of the preparation for every job though it rarely is.Be reluctant to change the way you operate. If you have been happy with the way your business works, there is a good reason for that. Make small changes, enjoy the challenge of new work, but keep true to your basic ideals and standards. Good luck.
*Hey Big Guy, look again at Schelling's words:i "Be reluctant to change the way you operate." Minor changes can be absorbed easily. Major changes have big disaster potential. Make sure you really want to have a huge, fast moving organization. You'll have to lay down the tools far more than you realize....blue
*Hi guys,Been taking a little break on thinking of this job---and the architect is drawing plans, so it's left me some time to get some smaller jobs to tide me over. It's snowing here in Seattle today! Thanks for all the posts and thoughts you have taken the time to write. Blue, I am not wanting to get huge and be fast moving, so hopefully it won't be a disaster. I am fairly conservative in movement, so whatever I do is slow and plodding, but steady! Schelling, good advice. John Carroll, I've checked your book out from the library and enjoyed it; will need to get it again--along with Faller's book on leads. Thanks for the post. I'll keep you guys posted on how things progress and beg for more advice!
*Just had an architect friend show me a similar job.....tear up the whole first floor of a condo/new kitchen/hardwood flooring. I asked how long the homeowners would be gone.....they ain't.How in the hell am I going to do all this work with people in the house? 1. Assure them I'm doing all I can to make them comfortable in a messy situation. 2. I am NOT going to tell them I have any misgivings, they're anxious enough. I must gain their confidence...not doubt. To them I'm experienced at this sort of thing....superman....here to save the day ... make them happy. 3. I MUST control the scene....keep the schedule.....think ahead.....(don't pull the old cabinets until the new ones arrive on the jobsite, etc.) 4. Do the job, one step at a time. Do it right. Keep the homeowners comfort in mind.....5. Warm and fuzzy's OK, but do figure a baby sitting fee into the job.6. I can do it.......so can you.....one step at a time (hopefully in sequence :-))
Hi Jim,
I like your positive, can-do attitude! We can do it!!
I'll keep you posted on further developments on my front....
Bob