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re: Is there such a thing as a residential project management/consultant company?
Posted on 4/20/19 at 11:41 am to poochie
Posted on 4/20/19 at 11:41 am to poochie
I did something similar when I built my home. We used a builder that managed the project but I was the GC on paper. We had plans done and the builder went through the plans and got quotes and allowances on every part of the project. He had subs for everything but I could use my own or get additional quotes if I wanted. He then charged a flat fee to oversee the whole project including scheduling the subs and checking their work etc.
It was obviously more work for us having to meet with some subs and pick everything out we wanted but we definitely saved a good amount of money and had more control of what we wanted. He only does custom homes and does have a contractor license.
It was obviously more work for us having to meet with some subs and pick everything out we wanted but we definitely saved a good amount of money and had more control of what we wanted. He only does custom homes and does have a contractor license.
1
Posted on 4/20/19 at 6:41 pm to saderade
quote:
did something similar when I built my home. We used a builder that managed the project but I was the GC on paper. We had plans done and the builder went through the plans and got quotes and allowances on every part of the project. He had subs for everything but I could use my own or get additional quotes if I wanted. He then charged a flat fee to oversee the whole project including scheduling the subs and checking their work etc. It was obviously more work for us having to meet with some subs and pick everything out we wanted but we definitely saved a good amount of money and had more control of what we wanted. He only does custom homes and does have a contractor license.
This is the type of client that I would want to service. Someone that wants to take on part of the hassle but doesn’t want to go it alone.
Did you build in louisiana? If so, did you list yourself as the builder or the the gc/pm?
I think getting the contractors license looks like the route I would have to take.
This post was edited on 4/20/19 at 7:19 pm
Posted on 4/21/19 at 7:34 am to poochie
If you were a GC and did this on the side, certainly would work. I just don’t see how doing only this makes sense. Again you are chasing clients that will be an enormous headache for very little money. You will need to have 3-4 times as many clients.
Being a GC can be a 7 day a week job. If you have a client doing a $20k remodel and you are only making $1000 you need to consider how often you want them calling you Saturday morning when the sub doesn’t show up.
Being a GC can be a 7 day a week job. If you have a client doing a $20k remodel and you are only making $1000 you need to consider how often you want them calling you Saturday morning when the sub doesn’t show up.
Posted on 4/21/19 at 8:37 am to poochie
I wouldn't pay 5k for this service. Someone acting as their own gc is already trying to save money, so a few extra headaches to save 5 grand probably isn't out of the question.
But I would pay a reasonable fee, so you may be onto something. I'd probably pay you 2-3kish to manage permits and bids.
But I would pay a reasonable fee, so you may be onto something. I'd probably pay you 2-3kish to manage permits and bids.
Posted on 4/21/19 at 3:35 pm to poochie
I represent general contractors who provide this service to residential homeowners. Obviously I don't know the exact details of the work or services you'll be performing or providing, but I've advised my clients in the past that have presented me with similar issues that they need to have a contractors license.
That said, most of them have already been licensed anyway as they are already general contractors. If you already have a solid reputation with various vendors and subcontractors, I think you could provide a valuable service to homeowners in your area.
That said, most of them have already been licensed anyway as they are already general contractors. If you already have a solid reputation with various vendors and subcontractors, I think you could provide a valuable service to homeowners in your area.
Posted on 4/21/19 at 3:37 pm to Tiguar
quote:
Being a GC can be a 7 day a week job. If you have a client doing a $20k remodel and you are only making $1000 you need to consider how often you want them calling you Saturday morning when the sub doesn’t show up
This would be a side job. And new construction, no remodels.
quote:
I wouldn't pay 5k for this service. Someone acting as their own gc is already trying to save money, so a few extra headaches to save 5 grand probably isn't out of the question. But I would pay a reasonable fee, so you may be onto something. I'd probably pay you 2-3kish to manage permits and bids
I could do different tiers.
X for pre-construction services
X for project Managment
Etc...
Posted on 4/21/19 at 6:35 pm to poochie
So a licensed general contractor who assists with the management and construction of a home but essentially is trying to not be responsible of the new home warranty act. No gC is getting legit insurance with that type of operation. There are specific questions about this type of tomfoolery.
Posted on 4/21/19 at 9:05 pm to Chad504boy
You’ve shite on this idea multiple times in this thread without providing any actual insight. I appreciate you playing devils advocate but there’s no substance to your responses. You seem to be answering from an insurance perspective so maybe you can give some actual reasons other than what you’ve posted so far.
As to your latest post, you do realize that project management as I’m laying out does exist the industrial and commercial construction space, correct. I’m not reinventing the wheel here.
As to your latest post, you do realize that project management as I’m laying out does exist the industrial and commercial construction space, correct. I’m not reinventing the wheel here.
Posted on 4/22/19 at 9:31 am to poochie
quote:
ou’ve shite on this idea multiple times in this thread without providing any actual insight.
i just did provide actual insight. and yes, on insurance applications there are questions about whether the GC asks the homeowner to pay subcontractors directly. It's essentially a work around but yet at the end of the day, they damn well will be brought into litigation if anything goes wrong. I see things mostly from a residential perspective not commercial so keep that in mind (huge difference w commercial and industrial vs residential). Insurance companies see these as a litigious nightmare, the word consultant in and of itself brings up a bunch of red flags. IT also essentially hides a contractors sales and sub costs yet still the same nature of a bigger risk.
Posted on 4/22/19 at 9:36 am to Chad504boy
from chads posts it appears he’s in the insurance business and he raises legitimate concerns. The first question I would have in such an arrangement would be about insurance and warranty
as I said the guy I know does this regularly and makes good money. He’s got a backlog and a string of satisfied customers so he clearly has a plan that works
as I said the guy I know does this regularly and makes good money. He’s got a backlog and a string of satisfied customers so he clearly has a plan that works
Posted on 4/22/19 at 9:49 am to cgrand
The trick is to have a very well done contract with your role clearly spelled out.
I don’t see the insurance as an issue, maybe it might be more but if your role is clearly stated in the contract it can help defend you in a court case?
I don’t see the insurance as an issue, maybe it might be more but if your role is clearly stated in the contract it can help defend you in a court case?
Posted on 4/22/19 at 10:40 am to eng08
quote:
help defend
think about it.
Posted on 4/22/19 at 11:10 am to poochie
I think there is certainly an area for a consultant (owners rep PM) to bring value on some builds but I would hope I trust my GC enough to do this for me.
Chad is right about the warranty/insurance concerns, ultimately someone with a license has to own the work and the consultant you are describing can't really do that. He can certainly act in your best interest tho and relay concerns
Chad is right about the warranty/insurance concerns, ultimately someone with a license has to own the work and the consultant you are describing can't really do that. He can certainly act in your best interest tho and relay concerns
This post was edited on 4/22/19 at 11:11 am
Posted on 4/22/19 at 12:29 pm to hiltacular
quote:
I think there is certainly an area for a consultant (owners rep PM) to bring value on some builds but I would hope I trust my GC enough to do this for me.
This would be in the case where the owner is self-contracting. The GC on a turn-key project better be doing this, LOL.
quote:
Chad is right about the warranty/insurance concerns, ultimately someone with a license has to own the work and the consultant you are describing can't really do that. He can certainly act in your best interest tho and relay concern
Any warranty work would be between the owner and the sub since they would be contracting directly. The PM could certainly assist in these efforts, though.
Posted on 4/22/19 at 12:38 pm to Chad504boy
I’ve been in a rather large number of extremely complex and f’ed up contracts, construction projects, etc over the years. There are a significant number with lawyers involved, but I can count on 1 hand the ones that went to court. All the rest were settled early.
Yes insurance is necessary, but the work is no different than engineering consulting or being a GC.
Insurance may cost more but I don’t see the line of work being in-insurable
Yes insurance is necessary, but the work is no different than engineering consulting or being a GC.
Insurance may cost more but I don’t see the line of work being in-insurable
Posted on 4/22/19 at 1:59 pm to poochie
quote:
Any warranty work would be between the owner and the sub since they would be contracting directly.
those are words that you just typed. not sure that's how any law works.
NHWA doesn't file against subcontractors. IT is filed against the builder. Oh, you're not the builder huh, what are you getting paid for then? you said you are hiring the subs and supervising them and so forth. The project is still your responsibility in some sort of way. Also, most banks require a GC to be on file for loans when a private residence loan. Then they'll have you faxing over your certificate of insurance to the bank and your construction name will be on everything from their perspective.
Look i don't have every answer and nobody does when it comes to extreme grey areas that you are trying to tip toe around like its so simple. Contracts at the end of the day are pieces of paper. Laws are already established.
Posted on 4/22/19 at 2:25 pm to poochie
I dont see this working unless you have some sort of portfolio built up of custom homes you've built as a part of another company or by yourself.
Im not paying someone for their expertise if they dont have any expertise to give.
The idea could work though, but it wont be part time. These people building will hound you at all times.
Im not paying someone for their expertise if they dont have any expertise to give.
The idea could work though, but it wont be part time. These people building will hound you at all times.
Posted on 4/22/19 at 3:02 pm to poochie
quote:
you do realize that project management as I’m laying out does exist the industrial and commercial construction space
The difference though is that you are talking about completely different project sizes by dollar amount. Assisting on a $25k remodel is completely different than a $25 mil project. The $25 mil makes sense to bring in an expert for a small % that costs $50,000 or whatever. You are looking for $2,000 on a $25k remodel.
I can see how this makes sense for someone like a GC looking to get out of the business full time and move to a handful of smaller projects to work part time in retirement with 0 skin in the game for himself. I don't know your experience OP, but you said you weren't even a GC right now right? I don't see how getting into that line of work before being a GC would make sense? Just my 2 cents.
The biggest thing you need to figure out OP, is how much you need to make per hour. Then you need to figure out how many hours projects will take. You need to be honest with yourself here. Include after hours calls and that type of thing.
Then you need to determine how many of those projects a year you need to do to make a living, and finally determine if that is possible.
This post was edited on 4/22/19 at 3:05 pm
Posted on 4/22/19 at 3:20 pm to baldona
Again, this would be for new construction. Not remodels.
Posted on 4/22/19 at 3:31 pm to poochie
quote:
Again, this would be for new construction
As said already and I don't have experience with this, but you definitely need to look into the financing part of it then. If you are not the official GC, you will need to know every single bit of info for the bank and the customers. You need to prepare for the worst when there is something that doesn't pass the final inspection and it was something that you assisted on.
What's the going rate for Cost+ New builds? Is it not 10%? Take a $400,000 house and you are only looking at $20,000 in savings? I don't know I'm asking? I'm not sure if that's enough to get enough customers over a cost plus full GC?
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