Hello all,
I have just met with clients that want me to be their GC on a new residential house. My question is, since they have not finalized plans yet, or any of the details one would expect to decide about on a pricing setup, what form should my contract take? It obviously at this point impossible to include any of the standard information on a bid/contract that I am familiar with. I have GC’d 2 previous houses, both without a contract (mea culpa, they were both family), and all of my remodel work was spelled out early enough on to do a detailed/comprehensive contract. From what I have read here, I am going to step up to the plate and acquire the JLC contractors legal kit, seems to be well liked from the feedback I have seen. But at this point my entire contract to be worded: I am going to be your GC, design work is $xx.xx per hour and we will add more stuff to the contract as things progress.
I know the budget, the appx (w/in 100 sqft) size and layout, (so , I know I will make money) and I am the only GC in the works, but nevertheless I want them to sign something, to ‘close the sale’ even if it is a ‘letter of intent’.
I appreciate anyone’s imput and have been impressed with the knowledge disseminated in the past. If my seach of the archives missed something close to this line of thinking/questioning, please point me in the correct direction and I will happily re-search and waste no more of your time.
Replies
You're doing the design? If so, then get them to sign a design contract. Even if it's a nominal fee ($1,000 for instance) it will help to seal the deal.
Once the design work is complete you can present a proposal. The flow could be seamless, and if they're happy with you there would be no forseeable objections to signing the main contract.
Another benefit to doing the design work is you can integrate their dreams with what you can give them for their budget. If you know it will cost you an extra $10k to install the cabinets they want, this hurdle can be dealt with ASAP.
If you can frame their expectations effectively they should be ready to commit to you for the duration of the job.
Jon Blakemore
Jon,
Thanks for the reply. I am not really doing the design right now. A 'friend' of my clients scared them from the architect route, so they are going with the purchased plan route (ewwww, eeeccchh, I know). I am very close to convincing them to let me design the house as I did with my parent's house (which the client's have walked through). I think I should push them in the design/build direction with a little more force, selling them on the items you touched on as to added value.
If I can get them to go for a design contract, that may be the way to be 'beholden' to me. They have seen my work and are impressed, I just want them to feel some sense of urgency for lack of a way to explain it. As we all know, the longer something goes unsaid/undone, the less likely that will get said/done to our satisfaction.
Regards,
Whack
Whack,For some reason when I read your original post I got it into my head that these were friends of yours. Since they're "clients" first and not "friends" my advice will be different.I would pursue the SCA with them. You need to solidify your relationship and at the same time take every opportunity to endear yourself to them.If you can get them to commit to a $1-2k SCA you know they are somewhat serious about using you. Your services could include an estimate as well as helping them modify their stock plans into exactly what they want.You can also use the process to further establish your ability to deliver their dream within a resoanble schedule and budget. If all goes well you will be almost locked in for the job. Plus being privy to the design "modifications" you retain some control in the direction of the job.Good luck and keep us posted.
Jon Blakemore
I have indeed looked at the SCA forms on this forum and I definately will be getting them locked in on one with a 1-2K fee to make it 'real' to them. Sorry about the misunderstanding, they are very good friends of one of my best clients and I have done lots of work for my friends and family, but the potential clients are not friends. Now, what is behind door #3 ;)
Regards, and I will keep posting as this progresses. This house is to be build in a development of customs that is expected to be 2500-3000 houses over the next ten years or so. It would be nice to be in on the ground floor and get good name recognition in the area while it is brand spankme new.
Whack
to follow up on what Jon said
do a search here on SCA Sonny Lykos proposal Mike Smith
should find a lot
bobl Volo, non valeo
Baloney detecter
Thanks Bobl,
I have indeed been sloggin through the SCA Sonny et.al. and like you said, it is a-lot- of information. Good information no doubt, but abundant none the less.
Is anyone you know on this discussion board one of the moderators? It would be nice if the business section was broken down even further i.e. -Contracts - Clients - Marketing - etc. Then again, what do I know, I's jus a nail bender.
Regards,
Whack
moderators have a gavel next to their name.there is a folder for forum suggestions.too much breakdown and things get really confusing, things get put in the wrong folders asd it is.are your potential clients aware of all the site unique things that go along with canned plans?
bobl Volo, non valeo
Baloney detecter
Yeah, you are right, we are innundated with too many choices as it is. I guess my OCD is acting up, trying to make everything neat and tidy. Time to go wash my hands again.....;)
I have been trying to convince them to let me do the plans vs. bought plans for the reasons you stated as well as a few others. I have to be careful to not stomp on their friends advice. I try to get my client to come to the conclusions I want while thinking it was their idea. Smoother that way lots of time. Shucks, my wife does it to me all of the time.
Regards,
Whack
Yeah, I wear the pants in the family...that's ok to say isn't it honey...please... just this once
it helps people to answer your questions if they know where your from.suggest u fill in some of your profile, like what state you live in or country or province etc. you don't have to get too specific if u don't want(did i do good razz?)
bobl Volo, non valeo
Baloney detecter
Thats a roger, roger, got your vector victor....