How to pay contractors?

[desura]

So here's the deal.

Property that I own, had a little problem with the general contractor and so will be ending the relationship with him after work is done on the exterior of the property.

Now, there are a few options going forward. One route I'm considering is hiring some guy(s) I know to "advise" me. They don't have much in terms of capital or equipment, but they do have knowledge. So like, I'd hire them to say oversee all electrical wiring of the place. I'd buy all supplies and basically act as their assistant.

And I might not be there every day.

Thing is, what sort of payment scheme should I set up? Like, an hourly wage would be a little hard to keep track of. But, since they're not making any capital investments, it doesn't make much sense to hire them for completing specific tasks like a traditional contractor...right?

 

[highland145]

By the job. 25% complete, 25% of the bid.....50% complete, 25% more of the bid....etc.

 

[olds]

OP, what country are you in?

 

[mmntech]

Progress payments by cheque. Never pay any contractor for 100% of the job up front. Any reputable company should be okay with installments as the work progresses. If they demand it all up front, run away.

Also insist that they prove they are licensed, bonded, and insured. A lot of fly-by-nighters don't have insurance. If something happens on your property, guess who gets blamed. If they can't or won't provide you this information before you sign the contracts, run away.

 

[highland145]

Progress payments by cheque. Never pay any contractor for 100% of the job up front. Any reputable company should be okay with installments as the work progresses. If they demand it all up front, run away.

Also insist that they prove they are licensed, bonded, and insured. A lot of fly-by-nighters don't have insurance. If something happens on your property, guess who gets blamed. If they can't or won't provide you this information before you sign the contracts, run away.

My bro hired a company out of Florida to put up the steel on his building. The guy got him to use his account at a local equipment company to rent a lift. And after the guy's been paid and gone, my bro gets the $5K bill from the local company. His brain must have been in his shoe on the day he agreed to use his account.

 

[desura]

Progress payments by cheque. Never pay any contractor for 100% of the job up front. Any reputable company should be okay with installments as the work progresses. If they demand it all up front, run away.

Also insist that they prove they are licensed, bonded, and insured. A lot of fly-by-nighters don't have insurance. If something happens on your property, guess who gets blamed. If they can't or won't provide you this information before you sign the contracts, run away.

As I said in the OP, this is different from a traditional contractor b/c I'll be buying all supplies and equipment myself. The contractor would almost be like an hourly employee, except he'd supervise "final assembly" of the project if that makes any sense.

 

[mmntech]

As I said in the OP, this is different from a traditional contractor b/c I'll be buying all supplies and equipment myself. The contractor would almost be like an hourly employee, except he'd supervise "final assembly" of the project if that makes any sense.

Doesn't matter. If he's running a business, get an estimate.

 

[EagleKeeper]

Doesn't matter. If he's running a business, get an estimate.

He will need to provide you with an estimated list of material for each phase of the project and amount of labor needed.
When 75% of each has is completed, you should be close to 70% of/so budget.

He can include his cost or provide a separate estimate for his own use.

 

[OCGuy]

Fellatio

 

[mikegg]

OP, get yourself a nicely written contract and protect yourself. Otherwise, it's going to be a he said she said thing with payment.

Here's one you can do with step by step instructions.

http://www.rocketlawyer.com/document/general-contract-for-services.rl

 

[desura]

OP, get yourself a nicely written contract and protect yourself. Otherwise, it's going to be a he said she said thing with payment.

Here's one you can do with step by step instructions.

http://www.rocketlawyer.com/document/general-contract-for-services.rl

Thank you thank you thank you.

 

[DaTT]

Fellatio

That only works in "movies"

 

[leper84]

Two options

1) Get another, better general contractor; pay him directly by progress and let him pay/deal with the subs

2)Open yourself up to getting royally screwed, minus lube, if/when something goes wrong by playing general contractor when you have absolutely no idea how to do it.

Example for option 2- One of your 'guys' wires something substandard and the building inspector tells you to start over; or hell, the whole damn place burns down. Guess what? Your 'guy' is going to say you, the general contractor running the project told him to do it that way. Being the gc, you are financially responsible for whatever happens.

 

[TwiceOver]

I just did the same with my exterior. I had a local building company come out and estimate all materials and then basically looked for a contractor and said "how much to install this". Found a guy I liked and I paid him when I felt a portion was completed that deserved money. I paid the building company separately. All contractor overages had to be approved by me before he could put anything on my account. Project changes required him to rewrite his estimate and signed approval.

Worked out perfectly. No surprises anywhere.

 

[Greenman]

So your hiring an unlicensed contractor as a superintendent, and you're going to be the general contractor? Who's providing workmens comp and general liability?
If the fellows aren't licensed, they're employees, and you're responsible for withholding taxes.

Al of this is assuming you're in the US and in a state that requires contractors to be licensed.

 

[Quakester]

Pay them hourly but less than the going rate because it will be cash with no paper trail. If someone gets hurt, hide all the materials and tools and break out the barbecue. Your homeowners insurance will cover it.

Well, that's how it's done in California anyway.

ps. just say you picked them up at a Home Depot.

 

[highland145]

Fellatio

Nope. Cunnilingus.

:wub: