In this episode I'm interviewing my business partner Shannon Kane of AAA+ Construction who will be offering his advice on negotiating with contractors. Please keep in mind that these are opinion's and take them for what they are.
Shannon what advice would you give to a private party when negotiating with contractors?
SK I would highly recommend interviewing at least 2 to 3 people for the job. You need to make sure that you are hiring someone you feel confident in the ability to get the job done. When you decide on the contractor to do the job I would recommend using the other bids to help negotiate a lower price but to keep in mind be reasonable otherwise they may not want be as willing to work with you. Contractor's naturally are very competitive and will negotiate. If someone is extremely lower than the other bids, have them explain why. Keep in mind hiring the lowest price contractor isn't always the best candidate to do the job.
How would you recommend handling the situation where the original bid and the final price are substantially higher?
SK It's the contractor's job to address any issues during a project that will have an increase on the final cost. Typically they put through a change order and discuss the change with you before they are done. Even though it's the responsibility of the contractor to do this I would recommend setting the expectation that you want to be notified before anything is done that would have a substantial amount of increase on the project.
With your past experience what quick tips would you recommend for someone interested in flipping a house?
SK I would recommend over estimating and setting an expectation that you will incur cost's that you will not see coming. Make sure you have cushion in your budgets and part of your budget to be holding costs. Be patient and focus on area's that are selling.
I'm more than happy to offer my contracting services and discuss my experiences with you in person. You can reach me at 920-360-4431. Thank you for your time. Shannon Kane
It may seem that I'm biased because I have a business relationship with Shannon Kane but let me stress that I only refer business out to people that I have had success with. When I think about working with Shannon Kane I immediately appreciate his straight shooting approach and setting realistic timelines and doing everything he can to meet the deadlines. This is not something you can find with every contractor so choose wisely.
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