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Rehab Project

2984 Views 8 Replies 5 Participants Last post by  scpainting
I looked at a 248 unit apartment complex yesterday. The place is a mess-- broken windows, weeds over my head, missing drywall, etc. Apparently it was crack head heaven until they ran everyone out.

I've bid a few projects like this in the past, and never won the job. (I'm not sure if getting the job is winning or not.)

I know I can't use my normal production rates for 2 reasons: 1. They aren't looking for the same quality we normally deliver; and 2. This is primarily simple painting-- i.e., the same stuff over and over and over.

So what kind of production rate gains can I reasonably project on a job like this?

I have come to the conclusion that money can be made on projects like this, but only if they are properly planned and executed. I'm interested in trying some bigger projects.

Three years ago our biggest project ever was $25K. The past three summers we've done projects between $60K and $90K. I was scared to death the first year, a little concerned the second, and looking forward to the third. Each was our most profitable project of the year. Thus my interest in moving into something bigger.

In the past year I've bid about 10 jobs that came in at the $200K+ level, but we have not won any yet. I've tried to modify our normal rates because of economies of scale, but suspect I'm not doing so properly. Many of these are nice properties that aren't going solely on price, but 10% or 15% higher is a pretty big number at that level.

Am I in the wrong game? Or am I trying to play it by the wrong rules?

Brian Phillips
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Is it going to be run like a new construction job?

Will there be new trim, doors and drywall?

Have you ever bid to this GC before?

Has this GC been awarded the job?

What is his payment schedules?

What is the work schedule look like?

Does he write up P.O.'s for extra's?

Is it a blow~n~go?

What type of materials are spec'd?

What are the expectations ...back to apts or selling as condo's?

Any state money involved?

The size or the dollar amount of the job shouldn't matter as long as your dealing with a ethical GC. Many different variables to consider to qualify a GC nowadays.......
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Ibut 10% or 15% higher is a pretty big number at that level.

Am I in the wrong game? Or am I trying to play it by the wrong rules?

Brian Phillips
Under bidding by 10% -15% would be a bigger problem at that level. Normally, with no inside contacts, this job is going to the low bid. I don't want to be the low bid and I know you don't either!
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