I want to build a nice outdoor seating area for my omakase restaurant, Ikebana Zen.
This is what happened
· I hired the contractor referred by a friend I just met through a mutual friend.
· I signed a simple fee agreement with him for $70k
· I paid him 80% percent when he finished 40% of the job
· He threatened me to stop the job if I did not pay him an additional $30k
· I told him to Fuck off and find someone else to finish the job
I was mad at myself and did not want to make the same mistake again. I had coffee chats with lawyers, GCs, and developers. Let me share the steps for hiring the right GC with you.
Ask real estate professionals for referrals and get bids from at least three good GCs.
Ask people about past working experience with this particular GC
Interview the GC and find the one you vibe with, and the price is somewhere in the middle
Sign construction agreement, detailed the work scope and payment schedule, I would recommend you working with a architect and a attorny for more complex projects.
Sign a hold harmless agreement and get COI from the GC
Pay no more than 30% of the total payment at the beginning, and hold at least 10% of the total payment before the job finish
Ask GC to sign the lien waiver after each payment
Ask GC for a one-year guarantee on all his work. Ask for a longer quality guarantee for certain work, such as plumbing, electricity, etc.
I appreciate my CBS friend Tomer, a Jewish developer, sharing his knowledge and experience with me.