Spent most of the day at the site today looking over some things that needed to be done at the Escondido flip now that some walls were open. Our construction contract here is a cost not to exceed and I could probably force some of this on the Contractor and win in the short term. But when I needed something on my end I would pay for it and then some and mess up the trust.

I do my best to have as strong a contract in my favor as possible and to have paid less than the work that has been done so far (they can always put a lien on the property if I don’ pay them as opposed to me trying to chase them down and sit on an empty building). I also try to have incentives with pay points so a certain amount of work has to be done by certain pay points otherwise they have to wait for the next pay period which is twice a month. This will keep them working longer to get something done they otherwise may wait an additional day to do.

I also make sure to stay fair even though I have a solid contract in most cases. On the other hand it protects me if someone try’s to take advantage of me (mistakes my kindness for weakness) or get’s behind schedule due to their effort.

I Had our first change order today for our Pennsylvania flip. I go over it more on the Penn site what I had to do and why.

The good news is I saved $150 on the roof and $150 on the Granite counters.

http://sites.google.com/a/gabhartinvestments.com/penn-construction/updates/firsthicups

to see the actual post and updated time line and pictures go to the pennsylvania flip site by clicking here

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