Looking for help with regard to taking the next step in running a well organized construction business.
San Francisco Bay Area general contractor, residential remodels, in business for 5 years. To date operating as a one man band pulling in resources as the job demands.
This past year I had two projects each at $165,000.00. With the use of a two page contract and a payment schedule based upon points of completion, I would like to refine this process.
I am beginning to work with an architect and would like to maintain this relationship by operating in a more professional manner.
Is there a software package which comes well recommended?
The following are points of interest;
- Contracts: I would like to acquire a comprehensive contract. Is hiring a contract lawyer necessary? I would think these contracts must now be available in a package form for operations within $100,000 to $500,000.
- Contracts with Subs: Are these available in a package form for most of the subs encountered on projects which includes the basic standards and guidelines for each trade.
- Change orders: Explain a successful procedure. Should change orders demand payment immediately within that payment cycle?
- Payment schedules: Frequency of billing and should it be strictly maintained. In other words, if I were to bill every two weeks should I allow for flexibility and stretch it out a week if it is a slow period? Basically a successful formula for billing every two to three weeks and how this is calculated.
- Estimating: I currently sit with the drawings and run through stage by stage calculating each step in the building process to develop a number. Very time consuming, however it’s what I do to feel comfortable about the number generated. What is the speedier process without missing the particulars in a project. I believe this gets easier with the completion of more projects and a data base to refer to.
- Describing the scope of work: How much information to offer? When working with an architect and his set of plans, is it sufficient to essentially specify that the contract is to build that which is specified in the blueprints? I have become accustomed to describing each category of construction with detail. I suppose I should generate a template with basic building standards and adjust it for each job. Is it advised to offer a complete break-down of cost with each category, framing, drywall, electrical, plumbing etc…
- Profit & Overhead: What is the recommended percentage? Should this percentage be disclosed?
Whew!
I think that should get things started.
Thanks ahead for incoming responses. Personal experience replies are the best, yet looking to recommended literature, software, and the like.
Replies
Start by clicking on that business header on the left. It will then display fifty or so of business thereads from recent discussions where most of these questions have been answered.
Contracts and their requirements vary from state to state. I wouldn't think of using a generic boilerplate without having it refined by my own lawyer. Don't think of it as a cost, but an investment.
Excellence is its own reward!
Head over to the JLC bookstore... "The Contractor's Legal Aid Kit" is a fantastic book with excellent contracts, sub contracts, change orders etc. It comes with a companion floppy with all the contracts in long, medium and short form ready to be tailored to your needs. I also suggest you read "Mark Up and Profit...A Contractor's Guide" by Mike Stone also with companion software. I am sure you will not regret either purchase, they both go far beyond the obvious without losing you in legal and business science jargon.
Yeah,
I realize by starting with current threads, they may answer some or most questions.
Just thought I would begin one, for responses directed towards my specific requests.
Thanks dieselpig, on my way out, I'll try the bookstore and check back later.