Buy-Fix-Sell Properties, Project Structure Conduct your project as Owner/Builder or hire a contractor

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Buy-Fix-Sell Properties Inc.

Project Structure

There are two methods of handling a construction project, the first is for the

property

owner to act

the capacity of Owner/Builder, personally taking out

any and all

permits. The second is to hire a

General Contractor. In the first

case the owner

contracts with licensed sub-contractors, both

scheduling

and

managing the project

from inception through to final permit. While this

allows

more control, saves

considerable money, it requires time and some

level of

expertise in

construction

and materials. The second method is to

contract

directly with a licensed General

Contractor and put the project

entirely into

their hands.

In both cases it is essential to check at least three references, current

standing of

licenses,

bonding and insurance. Most General Contractors, in

order to make a

profit must ideally run 5-6

contracts simultaneously and

charge

at least 25% on top

of the subs-contractors bid amounts.

While both

avenues

have advantages, they

also have challenges. The control and

savings of

operating as Owner/Builder is

offset by the owner’s potential

lack

of contacts,

unfamiliarity with

project

management, construction

standards

and practices

(fit and finish), not to mention a

steep

learning

curve and lack

of contacts and

resources. When contracting with a

General

Contractor,

the

general’s volume

of work, number of clients, as well as sub

contractors they

must schedule,

supervise and communicate which often

causes

delays

and results in

misunderstandings.

This is precisely why the best reference one can obtain on any contractor is

reference, from

someone you know, someone who has employed them

and can

speak to their overall

performance. Equally as important as good

references,

is a

site visit to completed projects to see

the Contractor’s

work

product. While

this

screening process may seem cumbersome, it is far

less

costly in terms of

time

and energy, not to mention the emotional stress

that

all construction

projects have

as a bi-product. Assembling a good team

the key to the

success of any project

even more so when dealing with

construction projects