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We have been doing preservation in Central Indiana for about a year, mainly HUD work with A2Z and grass cuts with 5 Bros. With PK Management set to take over HUD here as of Jan. 1, we're trying to look at all our options and decide if maybe we should replace some of the HUD business with something else, or do more REO with another company. We are a small company with one main crew of 2. We can't do a huge volume, but we would like to maximize revenue and decrease headaches like constantly going back to do QC jobs for no pay. We take pride in our work and do an honest job, but they will QC you for no good reason. What would you all recommend for a couple of hard-working guys that do quality work, and don't want to go out and hire other subs? We do have a good HVAC sub, and can do remodeling in addition to preservation.
Thanks in advance.
 

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yeah SafeGuard is a starting point...those guys will really put some hair on your chest..hell if you can do their work the rest of the company's will be breeze.
 

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We have been doing preservation in Central Indiana for about a year, mainly HUD work with A2Z and grass cuts with 5 Bros. With PK Management set to take over HUD here as of Jan. 1, we're trying to look at all our options and decide if maybe we should replace some of the HUD business with something else, or do more REO with another company. We are a small company with one main crew of 2. We can't do a huge volume, but we would like to maximize revenue and decrease headaches like constantly going back to do QC jobs for no pay. We take pride in our work and do an honest job, but they will QC you for no good reason. What would you all recommend for a couple of hard-working guys that do quality work, and don't want to go out and hire other subs? We do have a good HVAC sub, and can do remodeling in addition to preservation.
Thanks in advance.
So A2Z is losing there HUD contract! I tryed doing work for them but so gave up. standard pay , but they keep adding work and start reducing the pay.

Still work for 5 Brothers one of the companies I can still make good money with. But I am starting to see a pattern with them. HUD reduce price or price estimators crap.
 

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"Maximize profits and reduce headaches" are two things that really are not possible when doing preservation work for assett management companies. The QC problem and chargebacks can almost be like the wheel of misfortune; doesn't matter your quality of work, you are going to get bit. Why do you think we see so much hack work on these properties? Because it doesn't really matter. A small crew like you guys that will work hard should have a business plan to advertise locally, dig you heels in and prepare for something a little more long term and stable.
 

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So A2Z is losing there HUD contract! I tryed doing work for them but so gave up. standard pay , but they keep adding work and start reducing the pay.

Still work for 5 Brothers one of the companies I can still make good money with. But I am starting to see a pattern with them. HUD reduce price or price estimators crap.

I am adamantly against cost estimators. They violate the sub contractor relationship. If we are forced to do things for a certain price we are not subs.

I can charge whatever I want to do a job it is their choice to meet my price or go with Cragslist.:furious:
 

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I am adamantly against cost estimators. They violate the sub contractor relationship. If we are forced to do things for a certain price we are not subs.

I can charge whatever I want to do a job it is their choice to meet my price or go with Cragslist.:furious:
I total agree the brothers started this awill back and I hate it. I get alot of reasignes work orders because of this. have one that was bid (cost estimator ajusted)like $225 . I checked on ordering the door (not a normal size) almost $400 for door! it`s like they pull the numbers out of there ass!
 

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I total agree the brothers started this awill back and I hate it. I get alot of reasignes work orders because of this. have one that was bid (cost estimator ajusted)like $225 . I checked on ordering the door (not a normal size) almost $400 for door! it`s like they pull the numbers out of there ass!
I agree to a certain extent. More than not, those cost estimators have helped me earn more money.

I know in preservation it's not a given that you will get the entire bid so its not like you can eat a loss on one part and make it up elsewhere. I usually send them a link to where I'm buying something for the job and show them my price. That works. 100% of the time if they're working off of my bid.
 

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I agree to a certain extent. More than not, those cost estimators have helped me earn more money.

I know in preservation it's not a given that you will get the entire bid so its not like you can eat a loss on one part and make it up elsewhere. I usually send them a link to where I'm buying something for the job and show them my price. That works. 100% of the time if they're working off of my bid.

I agree...When I negotiate numbers...what you pay is part of your logistics and cost. sharing that info can be your friend....
 

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Cost Estimators are in every facet of construction. It affects P&P, insurance co repair work and down to the GC of record on all projects. The difference with P&P is the cost schedules/allowables has removed most, if not all, of the P&O.
 

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I love the cost estimators really helps you control the bottom line. You would be amazed and what they pay for some stuff. You can run 75% marigns on some stuff other stuff the pay sucks but you will turn a profit on every job if you entered the numbers right and known how to use the software
 

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It seems " best" is determined by location . If youre the only contractor in the area , they want to know you , if your in an area festooned with contractors ,,,,,,,,,
6 years ago people asked me how i paid the bills , i was told hmm thats interesting . now when asked they have a " friend " who does that as well so its basically supply and demand , you get your backside kissed if your the king and you get your rate
 

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Cost Estimators are in every facet of construction. It affects P&P, insurance co repair work and down to the GC of record on all projects. The difference with P&P is the cost schedules/allowables has removed most, if not all, of the P&O.
They are not in every facet of construction. I was GC on large municipal and commercial jobs for years and never used one. We sell remodeling jobs and have not ever used one.

They use them for Insurance, REO, FEMA, and P&P work. ALL of these types of work pay less than regular construction. Basically if you have to use a cost estimator they are trying to prevent you from making a good margin.

Anyone that makes more money using a cost estimator might need to look at their charges.

Our system is pretty simple we don't sell anything on the construction side that isn't profitable. Materials, labor, profit & overhead X 3. Pretty simple.

I have estimating programs but I enter the values.
 
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