Student Weekly Wisdom #7 - Controlling Your Contractors with Michael Mangham

Hey Mike

Great golden nuggets, I would have never thought of Lien releases and the comparisons having to be within the same scope of general work. since I just thought putting penalties for work that over extended the time frame would be sufficient. And since my job I encounter contractors on a frequent bases, I can ask them questions from a safe perspective where they would answer truthfully..... By the way mike do you get them to quote labor cost and material cost in your estimates and how much do you pay for these estimates?

Hi Mike great stuff!!!
thank you for sharing some great ideas

Hi Mike great stuff!!
where can i find a good contractor??

Yelp is a good source, angielist even though it is not free and home depos / lowes

Thanks Michael:
The part about Lien Releases was very helpful. I did not do that when we did the roofing on my Mom's house but thankfully nothing went wrong and a final release was issued upon completion.
With my current project, my biggest issue was getting a contractor to come to give me an estimate. Living in a small rural area, I have limited contractors that work my area. It has taken some time but I have found a solution to this. Sometimes you have to pay a little more but time saved is worth it.

Looking forward to your next video

Andy
DG's AndyS
CFIC & IE member
2013 & 2014 EDGE Alumni

great stuff.....

yeah... contractors.... argh!

good tip on the lien releases at different stages of the rehab.

Val

Hi Michael,

This was great. Is there a special form for lien release.

Recently I had a portion of roof done. An intial deposit was paid and I had the contractor write on the Contract page, that they have received a cash deposit. when roofng work was complete I again asked them to give in writing that the money was received.

Secondly I had to cancel the contract for the remainder of the work which was other then roofing as I found him to be very rude and got that in writing, saying as per mutual consent the remainder of the work is not be done and all the paymment for the work done has been received.

Bimal

I'm a Drywall/Painting contractor & also have done flips/rentals & now looking to get into wholesaling.

So I see things from both perspectives. I see what you're saying about trust after time.

I've always been of a perspective that I would not hold anyone to a contract but I've used a contract more for the purposes of not having misunderstandings. Like I thought you said this or if someone would to forget something.

As far as lien wavers... i sign one about every 3 weeks as I now have an account finishing twin homes for a general contractor & the title company has me sign when i pick up payment (one time).

The lien waver i sign has options such as partial payment, payment in full... so the partial payment option would confirm your advice.

Sounds like a good idea if you want to cover your bases and not have any potential problems.

Very sound advice & appreciate your time sharing.

Kelly