Red Flags When Hiring Sub Contractors

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At HowToBuildYourOwnHome.com, we will walk you through the process of managing your own build without a general contractor. This is the biggest savings in the cost of a new home. We offer budgets, draw sheets, checklists, sub-contractor agreements and more with video instruction and easy PDF downloads. Get the best resource of owner building and get more confidence in the process.
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[@anthonyesparsen7776]

I'm refreshing my skills I just t retire from 25 years of big government building inspections as a combo inspector,

[@tarahall1025]

In rural South- so many are not business minded on contracts- my last project in AL was all verbal with my framers/drywall/electrical/plumbing- not one contract- I'll do it much better this go round- but that project was successful.

[@HowToBuildYourOwnHome]

Teach them to draft estimates. It is the only way to hold each other accountable.

[@richardjamieson9103]

Love your channel, just discovered today. I have been remodeling all the homes I’ve owned for the past 30 years, and I’m about to embark on a build of what I hope is my last home. In my experience getting bids for jobs has been frustrating, and I’ve never witnessed the type of professionalism described here. As a result I have often resorted to doing my own work, or having to directly supervise the job, for lack of options that meet the high standards you recommend. I have supposed over the years that it’s at least partially due to the relatively small size of remodel projects. I think self-builders generally are going to have a tougher time evaluating and managing subcontractors, which could drive up the overall project cost.

[@HowToBuildYourOwnHome]

Good comment and true, all the more reason for owner builders to study, research and know the market better.

[@anthonyesparsen7776]

I do love your advice here about what you have to say

[@leegouldbourn5039]

Thank you Keith, I’ve been watching you for a long time cause I’d like to build my next house, but as a Sub this helped me confirm my bidding process to go over the top, it doesn’t hurt to be too professional! 🤙

[@HowToBuildYourOwnHome]

Glad to help. I appreciate the feedback.

[@anthonyesparsen7776]

Very good advice about a break down on the bid

[@alexr9490]

Great video, Keith. I can't wait for the live stream tomorrow. I want you to speak about a market update for the second half of this year

[@GenuineOptimist]

What area are you building?

[@anthonyesparsen7776]

I like your advice I'm a custom home builder

[@anthonyesparsen7776]

Thank you awesome video ! Keep doing what you are doing

[@HowToBuildYourOwnHome]

Thanks for watching!

[@debwinfrey]

Great information!

[@carolyngarcia6292]

Thank you so much for this information!

[@HowToBuildYourOwnHome]

You are so welcome!

[@joseceja8932]

Your Chanel is growing because you are an awesome, honest and smart man. Thank you again for always sharing. Hope me and my wife can talk via phone someday. Quickly.. I outright or free and clear I own a parcel nearly 1/2 an acre in Norco, CA, corner lot with an amazing view. Our goal is to cash flow all soft-cost Topographysurvey, soil-survey, architectural and mechanical plans, building-permits etc. once all soft cost are paid then we will consider a construction loan. What’s your advice or input to our goals? Approximately 3,000-3,500 SQFT HOME THANK YOU AGAIN AHEAD OF TIME

[@proscontract5679]

such a big help sir

[@Wilheminia]

I'm about to pull the permit for a new ADU in Southern California. As Owner-Builder, I've been incredibly busy trying to get quotes from subs. It's not uncommon to get only 2-3 quotes after beginning with a curated list of 10 subs. Their response rate is abysmal. In my case, referrals from friends or other professionals in this field have not been very helpful. In at least half of the referrals I've been given, the sub had no current license or worker's comp insurance, both of which are required here in my state. I agree with your statement about finding subs that treat their work as a professional business. Getting prompt quotes via email, in an attached pdf, using a company letterhead, and including their contractor's license, is the bare minimum to expect. Here in California we also have to be aware of the law that caps deposits at 10% or $1,000 (whichever is less), and it's crazy how even seasoned contractors will still try and ask for massive down payments. On a different residential project I was working on, I had followed all the steps to narrow down my selection of a contractor; he had good reviews, a current license, and worker's comp insurance, and responded promptly with a good paper trail. We seemed to have a good rapport, so I told him I wanted to give him the job and asked him for a contract. Shockingly, his contract asked for a $70K downpayment. I told him that amount was illegal, so he sent me an email to say he didn't want to work with me. It was back to square one.

[@HowToBuildYourOwnHome]

Subs can ask for more if it is to purchase materials, and typically I would ask for more so I am not out. I jack up my credit card 50K a week, and if one client chooses not to pay, it could be painful. This is why I use the state construction registry to file a notice of commencement. It protects me, but only with legal help. As for Cali, they cannot really interfere with contract law and say how much can be asked up front. But then again, asking that much is a red flag.

[@propelpropertymanagement1365]

A breakdown for labor materials and overhead is unusual to receive. A detailed list of inclusions and exclusions is fine. I would neither expect to receive nor give my overhead information.

[@nailpounder1430]

Have to disagree on line item bid, at least with my trade. I've been a carpenter for 45 years. The customer or GC, whichever, is purchasing the final product. Not my time, or the materials individually.

[@HowToBuildYourOwnHome]

Good point, not every sub works that way. For some it is necessary, like line item cost for soft water added, or various options in insulation etc.

[@AS-kw5hd]

I like your style of presenting info. I’d like to build, my husband is nervous about it, mainly the money part. It’s hard to budget for a build. I’m a retired landscape designer , (smaller projects) and I understand subs and scheduling, but it’s not as complex as building a home.

[@HowToBuildYourOwnHome]

See howtobuildyourownhome.com and take one step at a time.

[@michaelvonfeldt9629]

So what you are saying is go with the cheapest price?

[@HowToBuildYourOwnHome]

The best quality, then time factor to get it done, then price. Altogether and in that order.

[@bretsherk]

Keith Do have punch lists for each major step ? For example Ground prep initial Foundation Slab prep Plumbing Electrical Framing Etc… Thanks!

[@HowToBuildYourOwnHome]

Yes. All can be found at HowToBuildYourOwnHome.com. See the Courses page.

[@ceesklumper]

Good stuff, thank you.

[@HowToBuildYourOwnHome]

You bet, thanks for the comment

[@anthonyesparsen7776]

Do you have a tamplet you use for scope break down?

[@truckingwithtobee]

Yes buy his program for $800

[@Notch8]

Thank you this video is very helpful. Would it be normal to ask sub contractors for a line item cost on bids when sending or if they don't give line item bid ask then? Also is it OK to break bids into parts... example... The largest foundation contractor in my area does turnkey from excavating, footers, walls, waterproofing, backfill, and slab, but if I wanted to handle the waterproofing can I request it bid both ways. Or is that maybe a turn-off to sub contractors.

[@truckingwithtobee]

My soil guy is dragging his feet. He keeps telling us a date when he’s coming to do the dig but then he doesn’t show. Thank goodness we haven’t paid him yet.

[@HowToBuildYourOwnHome]

Yikes. Yes, some people drag their feet.

[@mt111111mt]

Are there any resources you're aware of that give examples of what a complete house bid package looks like including all sub trades?

[@tylersierra25]

Can a first timeowner builders start with a fourplex for their first deal assuming the funds are ready and theres house flipping experience in Orlando.

[@HowToBuildYourOwnHome]

Yes. I have helped several others with duplex and fourplex builds. I just completed a duplex of my own and looking to do a fourplex.

[@tylersierra25]

@@HowToBuildYourOwnHome yes but can you do a fourplex yearly without ever getting a GC live se and can you eventually do it yearly without ever living in a unit if you assumably have all cash btw i look forward to buying all your programs i promise this is worth answering …hand to god

[@GenuineOptimist]

@@tylersierra25 This is Keith from another Chanel. It depends on the state. I know in Cali that owner builders can do a fourplex, and I think once a year.

[@AhmonBryant]

Hey so if I am hired on a drywall finishing job as a sub and offer the home other services that I provid, do I owe the original contractor who subbed me

[@proscontract5679]

What websites can we add the bids in.

[@lookup9078]

🛎️🙏🎯