Key Takeaways
- Red flags include large upfront payment requests, no written contract, significantly low bids, and poor communication.
- Document all contractor issues with photos and written references to the SOW.
- Maintain a roster of 3-5 vetted contractors per trade as backup options.
- A reliable contractor at 10-15% premium is typically cheaper than the lowest bidder in total project cost.
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Test Your Knowledge
1.What percentage of investors who experienced a flip loss cited contractor issues as the primary cause?
2.How many vetted contractors per trade should be maintained as backup options?
3.What should you do if a contractor abandons a project (stops showing up)?