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I'm looking for a general contractor for a 250 sq ft home addition in Millburn. Of all the contractors I've received bids from, the one with the lowest bid and best availability to get the project done within my schedule typically does 203k projects (based on his Houzz reviews). I don't plan to take a loan for the project. What would the pros and cons be of hiring such a contractor? His reviews on Houzz and other sites are top-notch and his references have good reviews too, although they all used 203k loans.
Also, what is a typical payment schedule like for such a project? This contractor wants 30% down, then 3 more payments of 15-20% each, and finally 10% at the completion of the project. Is that normal?
Let me know how this goes. We are also considering Millburn and may need a contractor to do some work. Who did you choose? You can PM me if you don't want to disclose publicly
how long between the first 30% and the start of the project? if it could be long (i.e. do you have the permits and plans are approved), I would only give 10%. Then 20% at the start. Personally I am on the 12th month of getting the plans approved by the town and the builder has had my 10% for 6 months now
how long between the first 30% and the start of the project? if it could be long (i.e. do you have the permits and plans are approved), I would only give 10%. Then 20% at the start. Personally I am on the 12th month of getting the plans approved by the town and the builder has had my 10% for 6 months now
Nope, a Millburn like town. Suprisingly not that big. Just town being a PITA. Silly things like "your house was built before we change the set back rules, in order to do anything to your house, even if you are NOT changing your current set back, you will need to either move your entire house 5 feet back, or pay $1000, submit $300 in paperwork and wait 45+120 days to get a variance"
And then, they want different paperwork (like plans for the 3rd floor of the house even though we are NOT touching the 3rd floor), so the "45 days" counter gets reset to 0
Do you need a permit for every little thing i.e updating kitchen or bathroom? Not gutting, but just upgrading appliances, floor, light fixtures, sink, maybe bath tub etc?
Do you need a permit for every little thing i.e updating kitchen or bathroom? Not gutting, but just upgrading appliances, floor, light fixtures, sink, maybe bath tub etc?
NJ changed the rules recently. But basically a permit is needed if something new is added or something old is changed a lot and the thing could hurt someone (move wall, be sure house might fall. Add electrical socket, make sure it is not inside tub, ...)
No permit needed to replace roof or siding anymore.
how long between the first 30% and the start of the project? if it could be long (i.e. do you have the permits and plans are approved), I would only give 10%. Then 20% at the start. Personally I am on the 12th month of getting the plans approved by the town and the builder has had my 10% for 6 months now
The 30% would be due at signing, before he even applies for permits. I have the plans and variances already though. The estimate in Millburn is 3 weeks for a permit, but as your experience shows, it could be a lot longer.
Do you think 90% before the project is even completed is reasonable or common? I'm concerned he would have very little incentive to finish the project if all he stands to lose is 10%.
In any event, I haven't decided whether to hire him yet -- it would depend not only on how reasonable he is with respect to payment schedule, but a few other terms of the proposal too.
The 30% would be due at signing, before he even applies for permits. I have the plans and variances already though. The estimate in Millburn is 3 weeks for a permit, but as your experience shows, it could be a lot longer.
Do you think 90% before the project is even completed is reasonable or common? I'm concerned he would have very little incentive to finish the project if all he stands to lose is 10%.
In any event, I haven't decided whether to hire him yet -- it would depend not only on how reasonable he is with respect to payment schedule, but a few other terms of the proposal too.
He’s probably equally if not more concerned that he’ll complete the job and then never receive payment. If he has a long list of great reviews, there’s no reason to think he won’t finish the job. There was nowhere for him to go and read reviews on you, so he’s really taking the bigger risk here.
He’s probably equally if not more concerned that he’ll complete the job and then never receive payment. If he has a long list of great reviews, there’s no reason to think he won’t finish the job. There was nowhere for him to go and read reviews on you, so he’s really taking the bigger risk here.
I'm not disputing that. That's why contractors all require progress payments. My question was whether 10% at completion (especially given 30% at signing) is reasonable or commonplace in NJ or Essex Co. Paying 90% before the final phase is even started seems a bit high to me, but if that's what the norm is, then fine.
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