- Every rehab property should have a scope of work that acts as a blueprint for the entire project.
- Independent contractor agreement, W-9, lien waver, and proof of license are just a few examples of necessary legal documents to have onsite.
- Never pay for work in advance. Insist that contractors complete milestones before payments to create incentive.
Diving into a rehab project can feel overwhelming, but by adding a few of these construction management 101 tips to your investor tool box, the project should run smoothly.
Proper construction management is the key to success for any real estate rehabber. You may have a great vision, top-notch tools, and a stellar team; but, without a plan, the likelihood of a positive outcome will decrease significantly.
So where does the construction management journey begin? With a scope of work, of course.
Everything You Need To Know About Construction Management
Your scope of work should act as a blueprint for your entire rehab project; everything – and I mean everything – should be included in an SOW. This means more than just a general outline. You want projected budgets, a working timeline, a materials checklist, etc. Just think, the more you can include on your scope of work, the better. Once you have this step completed, be sure to discuss the process with your general contractor to ensure that he or she is on board.
After completing you’ve finished your SOW, the real work begins.
Be sure to abide by these six construction management rules with every new rehab project and there’s no doubt the process will run without a hiccup: