Hiring a general contractor to oversee your fixer upper repairs may be necessary if you are not familiar with finding and using sub-contractors on your own…however, using a general contractor is going to cost you a lot more money. General contractors usually charge 15 to 20 percent above their costs to do a job and they have their place in the scheme of things. But, if you can learn to be your own general contractor you can save a lot of money if you are able to deal with sub-contractors and know when they are doing an acceptable job and when they are not.

Sub-contractors are the people who actually do the labor…they don’t buy supplies or material. All that is bought and paid for by the general contractor or you if you are hiring the subs. you can hire subs by the hour or by the job. By the hour you will need to pay them every week usually on Fridays …by the job, it’s a little different. If it’s a small job-less than a week-you will need to pay in full when the job is done or if it’s a larger job you may need to set up a draw system. A draw system is based on performance, as in when certain phases of the job are completed you will be expected to pay a certain portion of the agreed labor. Any changes you make will escalate the price.

For example: A drywaller may want half when the drywall is up and the rest when the taping and mudding is done. A painter may want a draw between the priming and the finish color. A roofer may want a draw between the tarpaper and the finished roof.

Where to find sub-contractors

Sub-contractors will not usually be in the phone book yellow pages. You have to go where they hang out to find one. Go to housing construction sites and ask around. These guys are usually friendly and will help you out with information. Or go to a supplier such a major lumberyard or wholesale paint supplier and ask the owner/manager if he knows a good sub-contractor to do whatever you want done. These suppliers can usually put you in touch with someone. It is good to make up some cards with your name and phone number. Don’t put anything extra like “expert house flipper“ on the card, just your name and phone number. Write on the card what you need. Example:” Need a painter or Need a trim man”

Side Note: Mexicans and other Latinos are usually excellent craftsman. You will encounter many in your search for subs. In the real world you will find many speak little or no English although there is usually one in the crew that does and he is usably the straw boss and he is also the one that communicates with the contractor. However, you will be far ahead of the game if you learn to speak some street Spanish…this will sometimes save you a lot of money because these guys may be willing to work weekends for extra cash. Do not pay them up front and be there when they are working.

One thing though…sub-contractors are a cynical bunch and are leery of rent house owners and house flippers. You will have to do a good job of selling yourself before you will get much action. They want to be paid when the job is done without any run-around and do not care if you make a profit or not.

Above all get an estimate and thoroughly explain your expectations before the work is started and before the price is discussed.

Quality work

Subs are usually familiar with industry work standards and will base their prices accordingly. If you don’t believe you are getting your money worth, don’t be afraid to discuss it with the sub and be prepared to fire him if necessary. You should be critical but fair…some subs will go the extra mile to make you happy while others will not

Perfectionism

You may claim to be a perfectionist, but believe me your sub is not. They work in the real world where nothing is ever perfect. Don’t expect everything to be perfect because it won’t be…if you have a problem judging quality work get someone you know that is rational to help you.

Also, subs may have several jobs working at the same time…so, don’t be surprised if they are working someplace else for a day or two. A painter may work another job while the primer dries or a drywaller may be at another job while the mud dries. Supply problems can also be troublesome. Don’t expect them to hang around without supplies to work with…keeping supplies on hand is your problem.

The Money

You must have your financing in place before you start the job because bills need to be paid and on time. You may need to open a running account with suppliers to keep things rolling. Usually painters and some other subs will stop a supply store and pick up their paint or supplies for the job. Ask them if they have a favorite jobber and open an account there. Only certain people should be authorized to make purchases…give this information in a letter to the supplier. Ask for all receipts and check on the account daily.

Framers, cabinetmakers and trim guys will not pick up supplies. You have to have the supplies there for them to work.

Being your own contractor is a learning experience. It takes time to learn your way around and expect some bad experiences until you get a team of subs lined out who will work with you. In the long run you will always make more money with your fixer upper home being your own general contractor.