While this is atypical for a contractor it doesn’t necessarily mean there is a problem. It sounds more like a construction manager than contractor, but oddly enough his duty would be higher as a construction manager.

Really, the devil is in the details (of the contract). He might be just be a contractor with an odd payment arrangement or could be a construction manager or anything in between. Without the contract we will just be guessing.

I knew of someone who hired a project manager in California. Same or similar arrangement. Progress payment agreement.

Your guy doesnt have any money (or will not put it on the line).

Today, many builds are ”cost plus”. Many contractors will not take the responsibily of fluctioning prices and supply chain difficulties.

Is this your first experience?

A Mat -- Yes this is my first time building; it is a small off-grid retirement home so I don't want to risk a mistake turning into a 20k "learning experience". I did want a cost-plus arrangement but this seems more extreme. I don't want to have to eat any mistakes on his part plus I would think there would be insurance requirements and other things that a typical builder would handle.

I could hire an attorney to red line the contract but don't even know what type of attorney that would be (a regular real estate attorney?).

No way would I build a house from 9 hours away. We moved to our new location and rented a mile away, while we built our retirement house.

Most builders in my area are doing cost plus contracts, so you are making regular payments to the builder as different subs get started and finished.

I didn't pay any subs directly, but there were some supplies and appliances for which I paid the vendors directly.

We had an estimate for the total project, but essentially it was cost plus.

Off grid is going to be lots and lots of unknown extra expenses. Especially in AR. Not eco friendly at all there. You will easily pay twice the going rate. And you absolutely have to have a builder who has advanced experience. Which you won’t find in AR. So you either import a builder, build somewhere else, or you build something more conventional. This will be more like a 600K learning experience otherwise.

Collect the lien waiver and pay the subs directly. No big deal.

" I don't want to have to eat any mistakes on his part "

You will end up paying one way or another.

Not the right builder for you. Not the right project for you either. Buy something existing and get moved. Learn the market. Even if you remodel a small existing home, it will be cheaper than trying to do the project you want to do.

AR, at least the part I live in, is experiencing a huge building boom. It’s difficult to find a contractor right now. I agree that this doesn’t sound like a good fit for an out-of-towner. You need someone who can babysit the subs, I would be afraid that you wouldn’t even be able to find subs in this market and who knows how great the contractor’s contacts are. How did you find him? Maybe if he has some really referrals it’s a different story, but I would be wary.

Always deep dig into references before putting under contract.

It's an exception but we're doing one like this now in a project takeover where the owner terminated the prior GC.

Susie . Yeah things are hopping in Northern AR. They are getting transplants from a lot of other states and even a fair number from Europe. They seem to welcome the newcomers since those folks pump $ into areas that need it. I think it will be good for the region as these days most people relocate to areas that share the same ideology and that goes a long way towards assimilation. It is also a prime destination for homesteaders and preppers which means (contrary to what others may think) there are builders, electricians and installers familiar with off-grid solar.

I have gotten a list of a dozen or so builders and called them all. Of course many aren't taking on new projects in 2024 but they are always willing to provide more names if asked. I has gotten me a couple of good introductions including to a good 'ole boy land speculator that is lining up a few suitable lots to consider (which is much better than relying on real estate listings, he is also a builder and understands the land requirements). I am feeling very blessed and will do my best to be mindful of that even when things inevitably get stressful. :)

Mark Bischak, Architect Good point! Yes cash is king. That part does appeal to my controlling side. :)

A college roommate hired someone to manage his remodel, $150k turned in $400k.

Because of your post I asked for some details.. His project manager charged 5%, he had a rolo dex of subs, most were licensed. His city was strick on licenses/permits, Campbell, CA.

His project manager lost his contractor’s license and was unable to be a General Contractor, he had a rolodex and contacts. He also had declared bankruptcy. My fiend did not know of the bankruptcy or lose of contractors license before he hired him, they played on the same softball team.

The wife is/was very happy with the remodel, but he feels the was low bid balled to get him to hire the teammate. But he acknowledged the cabinets were ”way” over budget.

A Mat Thanks for that info! I will do my due diligence, get 3 bids, then choose the one I have the most confidence in. I do have sales, purchasing and project management experience and am doing my best to convince the builders that I will be an easy client to work with (when I find one that actually answers the phone which is the biggest hurdle so far).