tmbrk said:
Hi All-
I'm meeting with a contractor tomorrow to look at a fire restoration job at a single family residence. Over the phone she told me that they wanted a labor only bid and that they would provide materials. I have never worked with this GC before, nor have I heard of them. Apparently they specialize in fire/flood restoration projects.
My questions are: Has anyone ever worked in a situation like this before?
What are some things to look out for?
What is the benefit to them (besides no markup) by providing materials?
Thanks for any info.
I touched on this issue once many years ago, also I know a contractor who specializes in nothing but fire restoration work. Here's the why and how for from my perspective...
When an insurer restores a fire job, they do it for the minimum possible. They tend to stick to a few select contractors. Insurer agrees to pay X amount and the restoration contractor makes money by accepting that payment and then cutting corners wherever possible.
On one particular fire job, the 1st and 2nd floor sheetrock was soaked as well as the insulation. The contractor figures on replacing ONLY the bottom 1/2 and some ceilings and using a special paint / odor sealent on the upper 1/2. (Even though the entirehouse was priced for a full gut replacement.)
The contractor's game is to get the place whole & passable for the minimum expense. That means, the GC will cut corners wherever possible. So if you want to replace an entire 8-2/10-1 range feed with a 6/4 and the GC wants only the actual damaged portion replaced with same and 2 splice boxes, you couldn't since the 6/4 isn't on the site.
This is probably the reason he wants to provide material. Not to cut your markup out, but rather to more easily control the labor.
You will always be at odds with the GC on the issue of "is a repair a new installation?" If the kitchen is damaged would the new kitchen require 2 SABC's? The GC will always push the envelope to the degree that he'll insist a full gut is just a very big "repair" and will not pay for nor provide the material to bring the additional SABC or any other code compliant improvements. (though he'll tell the HO they're free to pay the additional extras)
You'll see 5 new oak cabinets that almost match the 7 existing reinstalled cabinets and it's little details like this that the GC uses to support his position that he's only repairing, not replacing or building new. Because many homeowners are not savvy enough to call the GC on the mis-matched cabinets, both due to ignorance and their pyschological mindset is not 100%, they get away with it.
In the sheetrock example cited above, on that particular job the HO's and their neighbor (a friend of mine) went in on Friday after the crews left and continued to demo ALL of the sheetrock and water damaged insulation in the entire house. Anything electrical that was touched by heat, flame, or water was thrown in the GC's dumpster. He came in Monday and was livid but the HO's prevailed - took pictures of everything first. Removal of damaged carpet and tile revealed waterlogged subflooring, and what was going to become a "repaired firejob" where the GC said "it's not as bad as it looks," turned into a full demolition and brand new from scratch rebuild, (even though most of the framing was intact.)
