Managing Contractor Pay and Supply Purchases

Does anyone have any tips on how to manage contractor pay and supply purchases?

I typically structure my contracts where a contractor gives a single bid for parts and labor, and we then setup a draw schedule and the park will buy supplies for the contractor, with the cost getting recorded against his bid.

The main drawback to this setup though is I have to be personally available for the contractor to make over the phone purchases of supplies.

How do other operators manage supply purchases on larger rehab projects?

Hi Noel, This isn’t a direct answer to your question, but I do have a few things of value to offer.

First, always use written contracts when hiring sub-contractors and even independent contractors. Make sure the contracts spell out who is to do what, who is to be insured, who is to carry what insurancee, and your legal relationship (Contractor or Employee).

Second, in today’s world, most workers that work exclusively for you are sooner or later going to be found to be employees, not contractors. Thus, if it’s close, I recommend you call them and pay them as employees. The penalties for calling someone an employee who is a contractor are small. Vice versa, they are big.