Putting together my first “real” proposal/contract for an addition. I am collecting bids from all the subs. How do you translate all the bids from the subs onto one document?
I understand that it is very important to describe in the contract what you will do. I have never seen a completed contract. Do you submit one total that includes all the subs plus your percentage? Then how do you explain everything for every sub, or do you include their bids as well?
Does anyone have a completed contract/proposal they could display, leaving out any personal information of course.
Many Thanks
P.S. I have reviewed many different blank remodeling contracts, but I do not understand how they address this above issue.
Replies
No doubt you'll get more detailed responses from others here, but it boils down to what the contractor will provide and what it will cost. The hiring of subs is between the contractor and the subs. Don't get me wrong, I'm not saying it's not your business or anything like that. I mean, they're working on your home and you should know every detail. But the subs hired is not part of the contract, so would not be outlined in the contract.
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First - I don't do remodeling... I build new stuff. That said, for some strange reason HOs don't understand markup. They seem to think that they hire me to do the job and then I can hire a sub to do <whatever> and maybe charge them $5 extra. <<<< huuuuu???? >>>> What I'm getting at is you don't revel your subs prices (in any way) to your end customer. You just give them a overall price. That is what a GC does....
Exactly! If you start down that path you will never hear the end of it. Most people just don't get it. So don't tell them.
If it totally freaks someone out and they can't handle it is it wrong not to tell them?
Got a HO right now... her words 3 weeks ago: " I just wanted to give your guys a first chance to build a <retaining wall> for me. Can you give me some phone numbers?" Hu????? OK - so being a good guy I ask my landscaper. He is not interested.... So I give her a # of another landscaper who I know will work for HOs.... So, the other day: me: "what are "we" doing with the retaining wall? her: "I'm not sure, he didn't call me back." Me: "you said you want the house done ASAP... the retaining wall needs to be installed NOW". Her: blank look...
When will I ever learn? I can see it now.... it's gonna be "my fault"... :-)
Edited 5/3/2008 9:56 pm ET by Matt
Oh yea, it's all your fault! ;^ )
Matt has given you great advice. You're selling a total package.... not a bunch of individual parts. You price it menu style and you're going to get hurt in the long run.
My simple suggestion is to buy the "Contractor's Legal Kit". It's a great resource when you're starting out. It includes boiler plate contracts, documents, and forms in both print and CD to get you started. You can customize them as you grow and learn. Or you can hire a lawyer to draw you up a custom set.
jimbo, I agree with most of what everyone is saying. after a while I am able to read homeowner better than before. for me it depends on whether the agreement is cost-plus or contract price. If it is contract, then i do what's been said and present a turn key price. I will state what i'm going to do: "manage all subcontractors on the job and assure quality control." if cost plus then i am honest up front and explain how much the plus will be. the trick is to not entertain "tire kickers". you will end up wasting time that could have been spent finding a quality cllient. I hope this pdf. helps. if it doesn't come through, then email me directly. good luck.
I like this contract very much. Thanks for posting it, it helped clear up some of my concerns.
What happens if the client doesn't make the payment?What happens if you become ill and can't work for six months?What happen if the client dies? What happens if the design of the project cant be agreed upon? What happens if the sub contractor that you hire burns the house down?What happens if the sub contractor that they hire to do work in your addition burns the house down and the sub has no insurance?What happens if you get hurt on their job? What happens if their dog gets killed by your stray nail from your gun?What happens if you fail an inspection and they won't let you back in to fix the problem? Do you still get paid?Lots of what happens.....Get the legal kit. Spend a few hundred and let your local lawyer fill in the holes in the legal kit model. Do it right from the beginning and you'll never, ever regret your decision. Bob's next test date: 12/10/07