In This Article
Types of Subcontractors
Finding Good Subs
Hiring Subs
Managing Subs
Potential Problems View all PROJECT MANAGEMENT articles
Many larger construction companies employ very few tradespeople and do all or most of their work with subcontractors. As an owner-builder, you are also likely to hire a number of subcontractors to complete phases of the job that you cannot or choose not to handle yourself. On many jobs, the quality of the final project depends heavily on the workmanship of the subcontractors. So it is important to find and hire good subs and to manage them effectively.
Subcontractors in residential construction are typically small companies, sometimes a single individual, that specializes in one trade. The types of subs readily available vary with local building practices. For example, it’s hard to find a stucco subcontractor in New England, but easy to find one in the Southwest.
Subs may be more or less specialized, depending on local building practices . For example, California track builders use several different highly specialized subs to frame a house, while in New England, one framing crew typically completes the entire frame. Some subcontractors combine more than one trade, for example, some plumbers also install heating systems; others leave that to hvac (heating, ventilation, and air-conditioning) subs. Some foundation contractors provide the forms, concrete, drainage system, flatwork, and waterproofing – others specialize in just one phase of the work – e.g., a company that specializes in “decorative” concrete finishes.
Because subs specialize in a single trade, they are generally more efficient and knowledgeable about their work than a jack-of-all-trades. When I started out as a contractor, the skill, speed, and knowledge of expert tradesmen always amazed me. A plasterer makes it look easy to stick barely wet mud to a ceiling, and then smooth it to a perfectly flat finish. I tried it a couple of times and the plaster just fell on my head. An expert electrician can snake wires behind walls as if he had X-ray vision. An expert at ceramic tile or hardwood flooring has the tools and expertise to create a floor that is durable, beautiful, and free of cracks, squeaks, or maintenance problems.
A quality-minded contractor will know and hire good subcontractors – his reputation relies directly on the quality of their workmanship. Because the general contractor has an ongoing relationship with his subs, they will tend to show up when needed, work at competitive prices, and perform good work. If you are acting as your own contractor, you will need to find your own subs. Finding and hiring good subs (and getting them to show up on time) is half the battle for owner-builders. If you are successful at this, the house will more-or-less build itself based on the knowledge and trade skills of the subs. Still a certain amount of direction and communication with subs will be required if you want to avoid problems and end up with the project you envision.
Types of Subcontractors
Some of the more common sub-trades involved in building a home, roughly in the order their work is performed, include
- Well drillers: They site, drill, seal, and “develop” the well. They typically complete the well system with a well pump, plumbing to the house and pressure tank. Most also offer water treatment systems, if needed.
- Excavators: Cut, fill, move, and grade the earth for your foundation. They also cut trenches for utilities, and create the final grades around the building. Some also install septic systems, retaining walls, culverts, and other types of site development
- Septic system installers: Install the septic tank, leaching system, and other components of the septic system, following the approved design of a sanitation engineer or qualified designer.
- Blasting contractors: You’ll may need one if you have to remove ledge for your foundation hole or utility trenches
- Concrete contractors: Set the formwork for a concrete foundation or slab, install the steel reinforcing, and lay the subsurface drainage pipe. They make sure the fresh concrete fills the forms without voids and finish slab surfaces as specified. They often build concrete stairs, walkways, patios, retaining walls, and driveways. They may also offer other services such as waterproofing/dampproofing of foundations, concrete cutting, concrete repair, and masonry work.
- Concrete companies: More a supplier than a sub, Ready-Mix companies deliver the specified concrete mix to your site. For hard-to-reach places, they have special pumping equipment.
- Masons: Build block foundations and anything else using block or brick and mortar. That may include stairs, patios, walkways, retaining walls, masonry fireplaces and hearths.
- Waterproofing contractors: Apply dampproofing or waterproofing to the foundation walls. Some waterproofing systems combine drainage, insulation, and waterproofing in one process.
- Paving contractors: Specialize in driveways, walkways, and patio made of concrete, asphalt, gravel, or “pavers” made of stone, concrete, or brick.
- Framers: Once the foundation is complete, the framers quickly build the “shell” with lumber, trusses, plywood, and other sheet materials such as OSB. The framers may also install the exterior doors and windows, but I’d rather have this done by a finish carpenter or window specialist.
- Roofers: Prepare the roofing surface with underlayment (asphalt-felt or alternative materials), along with special waterproofing membranes at the eaves and other areas prone to leakage. They install the roofing material: asphalt, metal, concrete, tile, wood, rubber, or composite. Some roofers specialize in one material, such as metal or flat-roof membranes. Roofers are responsible for sealing and flashing around openings and penetrations in the roof. They may also be responsible for installing roof ventilation.
- Siding contractors: Despite their “tin men” reputation, a good siding company can do nice work with vinyl, fiber-cement, or other synthetic and composite materials. They also handle exterior trim, typically with metal, vinyl, or composite materials. Wood siding is typically installed by carpenters, brick by bricklayers.
- Plumbers: First they “rough in” the pipes that will be hidden. Later they install the water heater and plumbing fixtures. They may also install water-treatment systems and hydronic (water or steam) heating systems.
- Electricians: First, they install the service panel and “rough in” the wires that will be hidden from view. Later they install the electrical switches, fixtures, and devices such as door bells and ceiling fans. They may also run wiring for cable TV and computer networks.
- Hvac: This stands for “heating, ventilation, and air conditioning,” which is what they install. Nowadays, this might include a whole-house ventilation system such as a heat-recovery ventilator (HRV).
- Insulation and Air Sealing: With the current interest in energy efficiency, the role of the insulation subcontractor has evolved. The best insulation/energy contractors today are well-versed in the latest building science and will make sure your building shell keeps the heat inside in winter and out in summer. They may also install sheet materials (air and vapor retarders) that prevent moisture problems in walls and attics.
- Drywallers: Install and finish drywall (aka, Sheetrock).
- Plasterers: Install lath and plaster – either skim-coat or traditional three-coat. Skim-coat is a nice upgrade from drywall if you can afford the modest upcharge.
- Finish carpentry and cabinets: Finish carpenters install the interior trim around doors and windows, as well as baseboards, crown, chair-rail, and other moldings. They may also install and trim out stairs, build shelves and other built-ins, and install kitchen and bathroom cabinets.
- Stair builders: In many cases, you’ll get the best deal and best quality from a company that custom fabricates stairs in its shop and delivers them to the job site. The more complicated the stairs, the greater the need for a specialist.
- Flooring contractors: Some companies sell and install every type of flooring – or use different independent installers for different materials. Ceramic tile, vinyl, wood, and carpeting have little in common, so it’s best to find a specialist for each type of flooring.
- Painters: It’s all in the prep work, they say, and it’s true. Exterior work is especially challenging, especially on today’s lumber, which does not hold paint as well as the wood of yore. Buy good paint and spend the money to properly seal, prime, and paint, or plan to paint again soon.
- Landscaping: The excavator may spread a little top soil when doing the final grading, but don’t expect a landscaped yard. Either you or a landscaping contractor needs to plant grass, trees, and shrubs. The sky’s the limit for more elaborate landscaping with stonework, koi ponds, terraces, pergolas, and exotic plantings.
- Others: The list can go on and on. There are specialists in window treatments, home theater, home security, solar heating and hot water, custom cabinets, fencing, decks and porches, garage doors, and you name it. Avoid sticker shock and cost overruns by getting bids early in the process and deciding what you can live without or complete later, maybe with some sweat equity.
Finding Good Subcontractors
You find subcontractors much the same way that you would find a general contractor or any other professional such as a doctor, dentist, or accountant. Ask around, talk to friends and neighbors, see who is working in your neighborhood.
If you see work being done in your neighborhood, don’t be shy. Introduce yourself, get a business card, take a look at the work if it is visible outside. If it’s indoor work, knock on the door later and ask the owner how the job is going. Ask if you can take a look –usually they are proud to show off their new project.
If the work is a large job handled by a general contractor, you may need to do a little more digging to figure out who the subcontractors are. Often the company name and phone number are painted on the side of the truck. Other times, you’ll have to walk up and ask who is doing the plumbing, electrical, roofing, tile, or whatever work it is you are in need of.
You can also ask at the local lumberyard – especially a contractor-oriented yard. However, I’ve had better luck with specialty suppliers. For example, if you’re looking for a tile installer ask at a tile retailer. For a plumber or electrician, ask at the local supply house that wholesales to the trade.
Once you’ve found a couple of good subs, chances are they can introduce you to others. These folks work together regularly and know who does good work. Try to get at least two or three names for each trade so you can get competitive bids. Also not everyone will be available when you need them.
Hiring Subcontractors
Hiring a subcontractor is really no different than hiring a general contractor, except that the scope of work is much more limited. However, the principles are the same:
- Start with a clear description of the scope of work, using drawn plans and written specifications, as needed.
- Solicit bids on an apples-to-apples basis.
- Make sure the subcontractor is properly licensed and insured.
- Use an appropriate contract that clearly defines the scope of work, price, and payment schedule. Make sure the contract covers important details such as the schedule, clean up, removal of debris, and a written warranty.
Deposits. Be leery of a contractor or sub who wants a large down payment before starting the job. If materials need to be special-ordered, one option is for you to order the materials under your own name with the required deposit. That way, if the sub never shows up for one reason or another, you own the special-order materials and have not lost your deposit.
Managing Subcontractors
If you’ve hired good people, and clearly described the work to be done, they will need minimal supervision on the job. It’s important that you discuss the job ahead of time, work out any potential problems or conflicts with other trades, and communicate what is most important to you.
For example, if a deck builder is bringing a small backhoe into your yard, discuss what impact this will have on the existing landscaping and how best to protect your lawn and plantings. If old roofing is to be removed, discuss the cleanup of nails and debris from the yard. Discuss any concerns about pets, kids, clean up, or other important issues.
Also discuss aspects of the work that are especially important to you. Since this varies from customer to customer, it’s difficult for the sub to know exactly what you are looking for. Are there trees you want the excavator to preserve? Do you want the skylight centered perfectly over the stairwell? Do you want the ceramic tiles to lay out in a certain way? Is it important to you that built-in shelving match a photo you tore out of a magazine? Does a closet or niche have a minimum dimension you need for a piece of furniture or equipment.
Just because it is drawn correctly on paper doesn’t mean it will be built exactly as drawn or described in the specs. Life on a job site is messy and noisy, and things happen quickly. If something is important to you, communicate it clearly to the people doing the work.
Scheduling subs. This is one of the trickiest aspects of any large project. If you are hiring multiple subs to build an addition, for example, their work must be done in the right sequence. The drywall can’t go up before the insulation is installed. The insulation can’t be installed before the rough wiring and plumbing, and so on. Sometimes one sub wants to run the ductwork exactly where another sub plans to run the plumbing drain, leading to potential conflicts.
Getting subs to show up on schedule can be challenging. A contractor who regularly gives work to a subcontractor will have more clout than you when a sub is super busy and behind schedule. A few recommendations:
- Build a little slack into your schedule to play catch up when needed. Expect delays due to bad weather, changes to the plan, late deliveries, and no shows, as well as Murphy’s Law, which operates at full force on construction sites.
- Listen to your subs’ suggestions for saving time and money and doing a better job. If you think they are just trying to cut corners, hold your ground. But often their suggestions are based on past experience of what works well and what doesn’t.
- Promise to pay promptly and do so when the work is complete. Subs will appreciate this and respond in kind. Cash flow is always an issue for small companies.
- Keep them informed. If you anticipate delays, let them know asap so they can shuffle their schedule around. When you’re ready to move, give them a heads-up a week ahead of time so they can pencil you in.
Prep work for subtrades. Provide key subs with their own set of plans with any special requirements clearly marked. The framers should get a framing plan, the electricians and electrical plan, and so on.
For example, framers need to know where you will need a thicker “plumbing wall” to accommodate drains and vents, or where you will need blocking in the wall to secure a grab bar, wall-hung sink, or other equipment. If you are working with a designer or architect, have them clearly mark any special framing requirements.
Also have your plumber, hvac contractor, and other subs review the plans to tell you what they need to do their job correctly. For example, plasterers need plaster “grounds” to guide their trowels, ceramic tile installers may need heavier floor framing and underlayment, plumbers need chases to run their pipes, and so on. If these things are not well planned in new construction or remodeling, bad things can happen on the job site. Plumbers and hvac contractors are notorious for pulling out their reciprocating saws and large drills and cutting away at the those pesky pieces of framing that are in the way of their ducts or pipes. Unfortunately those pesky pieces of framing may be critical to properly support the structure.
Potential Problems With Subs
For the most part, I have had good luck with subs over the years with a few notable exceptions. A few examples of problems I’ve and others I know have experienced are listed below:
- Problem: Not showing up on time. Not all subs are the greatest schedulers and when there is a conflict, you’re probably not at the top of their list. Also, they may be out of town or out of business by the time you need them.
- Solution: Give them a heads up a few days to a week before you will need them. Let them know right away if there are any schedule changes. Pay them promptly (and they’re much more likely to show up promptly next time).
- Problem: Speed vs. quality. Most subs are highly competent and efficient at their trade. However, in some cases, they user cheaper material than specified or work faster than they should and cut corners, producing substandard work.
- Solution: Hire reputable subs, who may not be the cheapest. Discuss quality standards with them and write specifications and quality standards into your contract with them.
- Problem: Collateral damage. In my experience, many subs have a kind of tunnel vision. They focus on their work and don’t necessarily see what else is around them. Examples from my work as a contractor include a plumber who put his greasy toolbox down on a $30,000 Persian carpet, and another plumber who cut large notches in the floor joists across the middle of a room, nearly collapsing the floor. In that case, I had to call in a structural engineer to undo the damage. I’ve seen similar structural problems with cuts made for ductwork. Also, I’ve seen mechanical subs run pipes or ducts through a living space when they were supposed to be buried in the wall or ceiling.
- Solution: Plan ahead. Discuss the job ahead of time – at a meeting on the jobsite if possible. On a remodeling job, communicate any special requirements regarding access to the work-site, protection of surfaces, and cleanup. With mechanical subs, ask where they plan to run their pipes, wires, or ductwork. Ask if they anticipate any problems or will need to cut, drill, or notch any framing. If the amount of notching seems excessive, get an expert opinion from an experienced framer, or if necessary, a structural engineer. See rules-of-thumb for the safe notching and drilling of framing.
Tuhaid says
How to Find Good Subs?
Hey I am new as a GC licensed in the State of Pennsylvania. I am looking to higher sub contractors to do more of my cosmetics and carpentry work. How should I go about finding those sub contractors.
buildingadvisor says
There is no magic to finding good subcontractors. It just takes “beating the bushes” — networking, asking around, and web searches (if all else fails). If you are already in the trades, you probably know some already.
If you are new to construction, then it will be more challenging. As a contractor, you could join your local homebuilders’ association as a place to start networking with others in the field.
Some subs are substantial companies that you can find in a web search. Others maintain a low profile with an unlisted number and a cell phone. You will only find these guys by asking around at the lumberyard or specialty suppliers. If you’re looking for painters, ask at a pro-oriented paint supplier. Same with electricians, plumbers and other tradespeople. You will often find their cards on the wall at wholesale suppliers to these trades.
Once you find a couple of reliable subs, they can give you the names of others. The good people tend to know each other and frequently work together.
Ken says
Who Is Responsible for Subcontractor Negligence?
Who is responsible when a subcontractor does a poor job or when he negligently causes damage to the owner’s during his work, thereby in either case causing extra expense to correct his mistakes?
buildingadvisor says
Assuming you have a general contractor on the job who hired the subcontractor, the general contractor is absolutely responsible for any problems with the sub’s work. That would include any faulty work, damage to your property, clean up, or any other costs that you incurred as part of his work. Your contractual relationship is with the GC, not the sub.
If you hired the subcontractor directly, however, it is a different story. In that case, the sub would be the responsible party.
It’s best to document these types of problems with photos and dated copies or records of any correspondence or conversations. Written documentation gives you a much stronger case if any sort of dispute resolution is needed at a future date. With the passage of time, memories get fuzzy and may be less than objective.
If you are still on friendly terms with the contractor, you can start your negotiations by phone, but it is a good idea to follow up with an email or letter so you both a record of your concerns and the contractor’s response.
Best of luck in finding a quick and satisfactory resolution to your problem.
Ann says
Who Is Responsible if Appliances Don’t Fit?
We had a granite countertops & backsplash put in by a contractor. It looks great but the installers cannot put the microwave in because the backsplash is not level. The granite is directly under the bottom bracket for installing the microwave. We have had three different installers tell us that the granite needs to be cut down 1/4 inch. The contractor says that this is not true and refuses to fix the granite.
buildingadvisor says
Short answer: If the microwave and countertops were supplied and installed by the same contractor, then getting the appliance to fit would clearly be his responsibility. If you hired one contractor (or subcontractor) for the countertops and another to install the microwave, then the answer is less clear.
When you hire multiple subcontractors or tradespeople to do different parts of a job, then you become, in effect, the general contractor. Coordination between the trades then becomes your responsibility. In that case the countertop contractor would still be responsible if you clearly communicated that this size microwave and bracket needed to fit above the backsplash.
Conflicts between one sub-trade and another are pretty common on job sites. For example, an electrician runs his wires where the heating contractor needs to run a duct. Or the framing contractor creates an uneven subfloor that needs to be leveled for the flooring contractor.
In general, it is the general contractor’s responsibility to prevent these problems or, if necessary, to find a solution after the fact. If the microwave installation was part of your contractor’s scope of work, or the contract specified a certain height for the backsplash, then it would be his responsibility to find a solution.
Assuming that you have not made the final payment to him, you would be justified in withholding enough money to pay another contractor to fix the problem. If necessary, you could hire another contractor – or the granite supplier – to fix the work.
Since I don’t know exactly who said what to whom, and what exactly the contractor agreed to, it is difficult for me to say what is fair. If you discussed the microwave installation with him but did not provide precise measurements, then he may be partly responsible for the microwave problem and you will need to negotiation a mutually agreeable solution. Perhaps he will accept partial responsibility and split the cost with you.
However, if he had no way to anticipate that you were installing a microwave and wasn’t supplied with specifications, then it would be difficult to hold him responsible. In that case, you may need to pay out-of-pocket for the revisions to the backsplash – or look for a smaller microwave and bracket.
buildingadvisor says
Hi fran
J Pirie says
Should We Hire Electrician or General Contractor?
We just bought a home and plan to build a small home addition for new baths and laundry, and minor kitchen remodel. Our electrician had advised us that we need to do whole-house re-wire (some wiring not up to code – found during inspection), and elec. upgrade.
Should we have GC do this during home construction and are they allowed by law to do this extensive electrical work? Or should we have the electrician do it ahead of construction by GC? It seems pretty tricky, if not impossible, to have the two types of work done simultaneously.
buildingadvisor says
You are correct that hiring both an electrician and general contractor (GC) to work at the same time would be awkward and may cause problems in coordinating the two jobs. If you want to hire your own electrician, it would be best to have the electrical work done first and have the electrician add enough circuits at the main panel to handle the new addition and any changes in the kitchen.
However, you risk doing some work twice – for example, if the kitchen remodel involves adding or moving any electrical outlets or appliances.
A GC can certainly handle the electrical work. In most cases, he simply hires a licensed electrician to do the work. You might save a little money by hiring the electrician directly. However, the GC will most likely be subcontracting work on the addition to an electrician, plumber, and other specialty trades. In most cases, GCs marks up the work of a subcontractor by 10 to 30%. On the plus side, there may be savings in having all the electrical work done at one time by one contractor.
A few points to keep in mind:
• In general, you are not required to bring a house up to code upon resale. There are exceptions where life-safety, septic systems, or other specific problems are involved. This varies according to the local building code. You may want to update the electrical system anyway, even if it’s not required. Many plumbing and electrical systems are out of date, but still work perfectly well. You can contact your local department of building inspection for more information.
• One exception is when you remodel. The building inspector typically requires you to update to current code any parts of the electrical, plumbing, or other building systems directly affected by the construction project.
• If you decide to hire the electrician to work first, you will probably be left with various holes in the walls and ceilings that need to be patched – something the GC would ordinarily take care of as part of his contract.
So either approach is fine, but it will probably be simpler (and only little more expensive) to have all the work done at one time by the GC.
Best of luck with your new home and you upcoming projects!
J Pirie says
Hiring Subs vs. General Contractor
Thanks so much, Steve, for your feedback. We’re trying to get as much done by subs as possible, before or after the GC work because of the mark-up. Maybe for the electrical, we’ll just go with the simpler, albeit more expensive approach. We’re going to get bids from multiple GCs anyway so we’ll see who’s the most reasonable (not necessarily cheapest).
We’re in CA where there’s a lot of remodel jobs (amid the crazy real estate market) and GCs have been milking the market, esp. for bath and kitchen remodels. For our kitchen and bath, we’re thinking of just asking the GC to build these to rough plumbing and rough electrical so we can hire the subs to do the finish. Is this reasonable? We’re looking for a good sample RFP document that will outline all these things. We already have a good plumber and we’re going to get pre-fab cabinets and bath countertops.
buildingadvisor says
I completely understand your desire to save money. Owner-builders typically save 20% or so of the total cost. In a high-end market like yours, where contractors may be marking up jobs by much more, the savings can be much higher on the portions of the work that you contract yourself.
I’ve remodeled a number of my own houses by functioning as the GC, hiring my own subs, and doing some of the work myself – in some cases working alongside a carpenter/GC. As a former GC, I’m comfortable doing this, but not everyone has these skills.
What you are proposing is similar although you may not be swinging a hammer. Although you would be hiring a GC to perform part of the work, you would in essence (and probably in the eyes of the building dept., insurance company, etc.) be functioning as an owner-builder. After the plumber and electrician finish their rough work, you still need insulation, drywall, finish carpentry, cabinets, flooring, paint, and electrical and plumbing finish.
Whether or not this is “reasonable” depends on your level of construction knowledge, level of confidence, and your appetite for managing a construction project. You will save some money, but will be assuming much of the responsibility for permitting, inspections, scheduling, quality control, and coordination of the trades – otherwise the responsibilities of the general contractor. You also take on more of the risk of any cost-overruns – a fact of life on most construction projects.
Also, all additions and remodeling projects have a lot of loose ends, where new and existing work. If you’re not careful, floor levels may not line up perfectly. You will be responsible for anticipating and resolving these kinds of problems.
If and when you hit bumps in the road – and you will – you won’t have a GC to complain to. If they are small bumps, you will probably be fine. If you hit large bumps, you may regret your decision. For example, let’s say the GC puts beam right where the plumber wants/needs to run a pipe. So the plumber gets out his Sawzall and cuts a big notch in a critical beam. Later the bathroom floor flexes and the tile cracks. Who is responsible?
One of your challenges will be finding contractors interested in bidding on just the rough work. It’s like buying a stripped down car – not much margin for the dealer, so they don’t get too excited.
Another issue – always a big issue – is defining precisely, in the plans and specifications, the “scope of work.” This is where a lot of jobs go awry. Make sure you and the GC see eye to eye on exactly what work is to be done for what price.
Getting multiple bids is a must. In a high-end market like yours, you might find a large variation in bids depending on how much someone wants the work. For example, maybe someone just lost a job and yours would be a good fit for their schedule. Just make sure you hire someone you can trust.
John says
Weekly Payments to Contractor vs. Draw Schedule
Hi Steve,
Well, we’re almost ready to hire our GC. He’s worked with us on giving us very detailed estimates and we got 3 good references that were happy with his work. He’s licensed, bonded, and insured, plus with workers’ comp … so we like him.
We’re just concerned that he’s asking for 20 weekly equal payments. Our friends tell us we must have payments tied to progress or % completion. On the flip side, we’ve read in some blogs that GCs should not be expected to finance the owner’s construction and hence should be paid ahead of work, even with installment payments. Technically, in CA, contractors can only ask for 10% down or $1K whichever is lower and that they cannot ask for payments in advance. We understand that with today’s prices $1K may be unrealistic and putting too much on the GC to cover the initial demo and construction cost out of his own pocket, not to mention paying his workers.
When we explained to our GC our preferred approach to tie payments to progress, he reasoned that it will hinder his ability to make progress quickly. We think it’s because he wants a consistent cash flow. He agreed to document a weekly progress schedule with us, as we’re making weekly payments but he still wants the weekly equal payments. Is there anything else we can add to our contract to protect our interest?
Thanks again
buildingadvisor says
Glad to hear that things are moving along positively with your project.
As you point out, the owner and contractor have different perspectives on the payment schedule – neither party wants to finance the other. The contractor wants to get paid a little ahead of the work, while the owner does not want to pay for work not yet completed or materials not yet delivered.
My perspective (and the bank’s if there is a construction loan) is that work should not be paid for ahead of time. If a contractor is unable or unwilling to complete a job properly for any reason, the owner should have enough money left over to pay another contractor to complete the job.
The optimal balance between the needs of the owner and contractor is a matter of negotiation. Weekly payments might be reasonable assuming that the contractor makes steady progress and completes the job in the number of weeks he estimates. This approach provides steady cash flow for the contractor and relieves him of the providing a “schedule of values” assigning costs to each phase of the work.
On the other hand, it leaves you pretty vulnerable if there are delays in the completion date – a pretty common occurrence. Worst case, you could pay out 100% of the budget, while the job is only 60% complete.
It may take some creative contract language to protect you from this scenario. For example, you could agree to weekly payments as long as certain milestones are reached. Otherwise, payments would be delayed until the work has caught up. Depending on size of the project, you may want three to six progress milestones. Typical ones are demolition, rough framing, dry in, plumbing/electrical rough-in, drywall and interior finishes, and final completion. Milestones should be based on phases of work completed, not started.
A good contract is important, but at the end of the day, the integrity and skill of the contractor you choose are more important than the specific contract language. A certain level of mutual trust is necessary for things to move forward. Conversely, a well-written contract cannot get good work from a lousy contractor. It sounds like you have found a trustworthy contractor, so you are well on your way to a successful project.
Read more on Payment Schedules Contracts Choosing a Contractor
K Taylor says
Who Is Responsible: GC or Sub?
If not written in an estimate who is responsible for heating during the winter for mortar curing? the general contractor or the subcontractor?
buildingadvisor says
The general contractor is ultimately responsible for the proper completion of all work, including the work of any subcontractors. And, in general, the GC is responsible for temporary power and heating prior to substantial completion. So unless there is a written contract that passes responsibility for temporary heating to a subcontractor, I believe it is GC’s responsibility. If this is not acceptable, then the parties will have to negotiate a mutually agreeable solution.
To avoid this sort of misunderstanding in the future, make it clear in a written subcontract who is responsible for the all prep work, materials, and job-site conditions related to the subcontract