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ehoops_gw

Help much needed

19 years ago

Not sure where to even begin. Just last week we made the decision to fire our contractor. I wonÂt go into all the details but in a nutshell his bookkeeper couldnÂt keep the finances straight, lost money, etc As we progressed in the job we found that many of his original estimates were way, way off of the actual costs (he estimated labor and materials for hardi siding of 17,000 for a two story 4300 sq foot house (in the California Bay Area), the actual cost is around 65,000 after 3 bids), this is just one example of manyÂ. Then about a month ago, when we started to get nervous because the financials were not adding up we asked for a detailed projected cost to finish and were floored when he came back and told us it would be 300,000+ over original budget and that DIDNÂT even include our 2 fairly minor changes. We are about 60% done, siding is going up now. We are trying to avoid going the legal route but we will if necessary. By removing our contractor and all his overhead/profit and supervision costs from the equation, weÂve determined we can, with some concessions, finish the job close to our original budget. So, our plan is to act as GC for the remainder of the project. But neither my husband or I are competent in construction, therefore we want to hire a contractor as a consultant. We feel we can finish the job if we hire someone to inspect the work being done and help answer any questions and assist with decisions that are beyond our ability. What would be a reasonable amount of time to request a contractor spend as a consultant? How much would be reasonable to pay a contractor to do this? How should the pay be structured, hourly, set amount, etcÂHow should this type of contract be structured? Any suggestions at this point would be much appreciated.

Also, for any of you whoÂve fired your contractor how did you handle liability for the parts of the job that he/she had completed? WeÂre going to be talking with a lawyer to draft a separation agreement but IÂd be interested to see what others have experienced. Thanks

Comments (7)

  • 19 years ago

    When I act as a project manager on a custom home in the Toronto area I expect to be paid $9-$10K per month. I've been a licenced new home builder since 1990, renovating since '81. You can always get less experience for less money.

  • 19 years ago

    ehoops
    I really feel for what you're going through. We found ourselves in the EXACT same situation at about the same stage of build with about $300k over budget.

    DH was ready to fire GC too. At the time, our lender and our lawyer advised us to work it out with GC since we weren't in the position to GC ourselves (business commitments). They cautioned us that getting a new GC who was worth anything might have several other builds going on which could delay us a year or more. Also a new GC might come in an not agree with how something was previously done.

    Though our GC is an excellent contractor he too is a lousy businessman. In hind sight DH thinks we too would have been OK by doing it ourselves. Being in California (our codes seem strick compared to some states) it might be harder to GC a build half way through it. But I wish you luck and hope that you can find a consultant as worthy as Worthy

  • 19 years ago

    Kats- I know I've seen your posts but I can't remember off the top of my head where you are with your build.
    Worthy- Thanks a bunch for the estimate for a consultant.

  • 19 years ago

    ehoops,

    We moved into our home on August 8th. Doesn't mean the house was finished...we just moved in!
    I posted a few pics a little over a week ago and plan to post some more next week.... b/c....DAH DAH....
    "we got sod today"!!!!
    (I tried to link the Banana happy dance but there's not that many hours in the day! LOL)

  • 19 years ago

    Kats, I thought you were in but wasn't sure. Congrats. It is reasuring to hear that people have made it despite some real building nightmares. I'll keep you all posted.

  • 19 years ago

    Oh my!!! You have just described my worst nightmare!!!! That is why I am having so much trouble actually signing a contract with someone and committing financially to this. It is so much easier and fun to be doing the dreaming and planning part. It is free, for the most part!!!! I am probably out about 11K for my architect's fees, but other than that I have not bit the bait. I have found a project manager that wants 75K fixed fee to help with our project. It sounds like a pretty good deal, but he won't commit to helping with the budget until we sign a contract. If we choose not to go through with it, we still pay him like 20K. How the heck do we know if we can build the darn house without the budget and specs? That is the nefarious vague area we are dealing in now. He, of course, is "guesstimating" about what the house will cost, but 100K would swing the project out of our complete range to afford. 300K would kill it dead! I just don't want to go with the fixed cost GC that doesn't reveal his costs to me or his overhead. I want to control the project or copilot and but not sure I feel I can tackle this completely on my own.
    I'm not sure if I'm glad I read this post or not!!!! ARgh!!comfortdog

  • 19 years ago

    ehoops, I am so sorry for your experience.
    Have you finalized the "firing" of your gc? If yes, then I would try and make some sense of what needs to be done when, just to keep the house building in progress.
    then, as you have hinted, move in the direction of a consultant. Do you really need one? How confident are you in the area and knowing other people building that could recommend the various tradespeople to complete the job?
    Start your list of contacts for trades people and interview them.
    Do you have the time to do this yourself?
    You need to ask yourself all of these questions to determine the best course of action.
    again I am sorry for your situation, but you can get thru this. Get your pen and paper out and start working out the options.
    Best of luck and pls keep us posted.