Managing Contractors on a Rehab: A Practical Guide

Most rehabs do not blow up because of materials — they blow up because of unclear scope and loose money. Tighten both and most problems disappear.

Write a line-item scope of work

Vague scopes invite change orders. List every task, by room, with the material and finish level specified. Bid the same document to 2–3 contractors so you are comparing apples to apples.

Never pay ahead of work

• Use a draw schedule tied to completed, inspected milestones — not the calendar.
• A reasonable structure: a small mobilization deposit, then draws at framing/rough-in, at finishes, and a final retention released only at punch-list completion.
• Retention (often ~10%) is your leverage to get the last 5% actually done.

Control change orders

Every change is in writing — scope, cost, and schedule impact — and approved before work proceeds. "We will sort it out later" is how budgets die.

Verify, do not trust

Inspect at each draw. Photos, a walkthrough, and (where required) municipal inspections protect you. Confirm licensing and insurance up front, and keep lien waivers with each payment.

Protect the timeline

Holding costs are silent profit-killers. Order long-lead items early, keep the site decision-ready, and hold a brief weekly check-in. A contractor who knows you are paying attention performs differently than one who does not.

Build a bench of reliable trades over time — on Empire you can find vetted contractors and other vendors alongside your deals.