Scope of Work Tips
It’s hard to decide what’s more exciting in our business. When a homeowner accepts our offer to buy their property, that win-win situation is very exciting! Another exciting day is when we accept an offer from someone who wants to buy the rehabbed property. Closing day in both situations is exciting. We have lots of closing days, since we have a closing when we buy the property to rehab it, and another when the finished property sells to a new family. And, the first day of work on a new property is exciting as well.
Amidst all these exciting moments, we do lots of hard necessary work. As soon as our offer is accepted on a property, we walk through it again, making notes about all the work that needs to happen to complete the flip. Then we put it in a document called the Scope of Work (SOW), that we then provide to our contractors for them to provide their quote for the project. We’ve been using the same contractor for a few projects right now, but we still need another team to grow to the next level, so lots of contractors get to quote.
Here’s how the Scope of Work is organized:
- Roof, Fascia & Soffit
- Finish – Siding
- Doors & Trim
- Electrical, including Lights
We made very specific notes under each for each area of the home, and we include pictures for clarification where needed. The contractor bases his quote on this SOW. Once a quote is accepted, anything we change on the SOW requires a change order. The change order usually increases the cost, so having a good SOW in place before the quote provides a way to control costs!
You can try this yourself next time you plan a remodel in your home. SOW creates clear expectations with your contractor and helps control your costs. Just a tip we can offer from our experience flipping homes. What are you remodeling next?