Description

House Flipping Construction

This product includes:

• Contract with General Contractor (with example construction plan)
• Construction Sequence
• Scope of Work Software
• Project Timeline Template

Congratulations! You have chosen a construction budget, created a project estimate, wrote an offer, negotiated, and now you have a house under contract. Way to go! Now is the time to get to work creating a detailed construction plan and finding a contractor to do the work within the budget and time. The clock is ticking! You need to lock down the contract with a general contractor before closing to ensure that construction will start immediately. Every day that passes after closing will cost in carrying fees!

How do you create a construction plan? Don’t worry. The SHV Construction product will guide you through every step of the house flipping construction stage. A complete construction plan will be created with the help of the home inspection report and the team’s recommendations.

A detailed construction plan contains

• Scope of Work
• Project Timeline
• Materials Specification
• Layouts for any alterations (new floor plan, kitchen layout, pool and patio area, etc).

These items together detail the construction plan which should fit within the budget allotted for construction by the SHV Construction Budget Estimation. The construction plan will be attached to the Contract with General Contractor to stipulate exactly what work will be completed, the sequence of that work, and the points along the way where the contractor will be paid (receive draws). The finalized construction plan is a useful tool to attract potential investors, as well as a means of communication to share the progress throughout the project.

Contract with General Contractor

• PDF Documents
• Legal contract for construction between the property owner and licensed general contractor
• Example addenda detailing a full construction plan
• Delivered digitally and immediately

The Contract with General Contractor is a full legal contract for construction between the property owner and a licensed general contractor (GC). We use this contract on every project, big or small, to hire a GC. This contract legally binds with the construction plan to stipulate what work will be completed, the sequence and timing of that work, the materials, and the points along the way where the contractor will receive progress payments (draws). The contract also offers the GC incentive for finishing the work on time and budget.

This contract includes the following documents.

1. Contract with General Contractor – main contract between property owner and GC with references to include a full construction plan
2. Subcontractor List – used by GC to inform you of subcontractors including their license numbers and insurance
3. Change Order Form – allows you and GC to alter work required, time allowed and/or payment amount
4. Two Waiver and Release Forms – GC signs
   • during the project, acknowledging a progress payment and releasing liens up to that point in time
   • upon completion, acknowledging the final payment and releasing liens at any point in time
5. Example Contract Addenda – details a full construction plan
   • SHV Rough Scope of Work
   • SHV Scope of Work
   • SHV Project Timeline
   • Materials Specification
   • Kitchen Layout Plan
   • Kitchen Layout Plan 3D

DISCLAIMER: WE ARE NOT LAWYERS This is the actual contract that we use today at Select Home Ventures LLC. It was written by our lawyers. However, WE ARE NOT LAWYERS! The information you obtain at this site is not, nor is it intended to be, legal advice. Before you use this contract, please have it reviewed by a real estate lawyer in the jurisdiction within which your company operates.

Construction Sequence

• PDF Document
• A tool to help sequence construction tasks
• Delivered digitally and immediately

The SHV Construction Sequence is a document that details the unique sequence we use to order construction tasks. The SHV Construction Sequence has 6 construction phases. The phases are logical groupings where progress payments make sense.

• Phase 1 Prepare – Prepare for the project. This includes obtaining all of the necessary documentation to make sure you are legally and physically ready for the work. Then you will physically prepare the house for the rehabilitation with demolition and removal of the old structure and materials.
• Phase 2 Weathertight – Build, rebuild, or extend the structure and make the exterior safe from the weather. The skeleton of the house is framed in wood, concrete, or metal. The house will then have floors, walls, ceilings, and roof structures. Finally, the windows, doors, and outer coatings are applied to secure the house.
• Phase 3 Rough In – There is work inside and outside. Inside, we rough-in or repair the house mechanical systems. These are electric, plumbing, and heating ventilation and air conditioning (HVAC). The ducts, pipes, and wires will all be in place within the walls, ceilings, and attics when this is complete. Outside, the roof, downspouts, and exterior concrete structures are installed.
• Phase 4 Fill Out – Begin installing finish work. This includes drywall, paint, flooring, and cabinetry.
• Phase 5 Trim Out – The inside surfaces and mechanical systems are completed.
• Phase 6 Finish Details – Inside all of the accessories are completed and outside the landscaping is completed. Then everything is cleaned and evaluated for the punch list. Finally, the last touch ups are done.

Each phase has 8 construction steps. A step is a grouping of like-kind construction tasks. The steps must be completed in a particular order. Every step has a list of prerequisite steps to specify the ordering. The list of prerequisite steps contains all prior steps that must be completed before this step can begin. Very few construction projects use all 48 construction steps. We only use the steps we need for the project.

This document explains each of the 48 construction steps and the prerequisite steps in full detail. It also has a full-page, concise, and easy to read overview table and prerequisite flowchart diagram. The product also contains prerequisite long listings, the magic that makes the SHV Project Timeline Template work effortlessly!

The SHV Construction Sequence is designed to be used with the SHV Scope Of Work Software to create a detailed, organized, and sequenced scope of work. The scope of work is used with the SHV Project Timeline Template to create the SHV Project Timeline. This timeline graphically shows the progress for the project while construction is underway.

Scope of Work Software

• Independent software with instructions
• Organizes your scope of work into the Construction Sequence
• Highly configurable to meet your needs
• Delivered digitally and immediately

The Scope of Work Software is designed to be used with the SHV Construction Sequence to produce a detailed, organized, and sequenced scope of work for you. Upon getting a flip house under contract to purchase, we go to the property over several days to settle on all of the improvements. We go room by room, inside and out, taking measurements, deciding what work will be done and documenting it all in detail. Next we use the SHV Construction Sequence to order the work. Then we use the SHV Scope Of Work Software to create a scope of work.

The software works on Ubuntu in the Windows Subsystem for Linux (WSL). This is a free system built into Microsoft Windows 10. You only have to turn it on. This product will install one program on your system named shv_scopeofwork_generator.

The software requires text-based input created using the SHV Construction Sequence. This input is easy to create with any word processor, such as Microsoft Word or Google Docs. An example project input file is included.

The software produces two files

• SHV Rough Scope Of Work – This file is simple to read and will list the needed improvements room by room.
• SHV Scope Of Work – This file is more detailed and the work is listed in the order it should be completed. It is laid out in the construction phases based on the SHV Construction Sequence.

The SHV Scope Of Work produced by this software is the foundation of the construction plan. It will be used throughout the entire construction process.

Project Timeline Template

• Microsoft Project template
• A tool that will create your construction schedule for you
• Implementation of the SHV Project Timeline
• Highly configurable to meet your needs
• Delivered digitally and immediately

The Project Timeline Template is a Microsoft Project template that contains the full SHV Construction Sequence. It creates the SHV Project Timeline by sequencing the SHV Scope Of Work for your project in time. In Microsoft Project, simply delete any steps that are not addressed in the SHV Scope Of Work. It automatically configures the SHV Project Timeline to adjust the work sequence for any unused construction steps. The SHV Project Timeline sets the schedule for the entire project.

The SHV Project Timeline calculates and displays the percentage of the project that is complete. It also tracks the progress of the project graphically. The SHV Project Timeline together with the SHV Scope of Work provide an easy way to share status updates about the project with the team, the contractors, and the investors.

Included are instructions and tips for configuring the software to meet your needs.

We are here to help you! Please feel free to contact us with any questions you may have. We welcome your email or call and the opportunity to connect with you!