Construction Supplies – should you buy them or should the contractors buy them?
#AskProfJoeyC Episode 22
When using a contractor, you’re taking headaches and giving them to him! Let them buy the construction supplies. Buying materials is a BIG headache, so as much of that as you can give to your contractor, the better.
We allow contractors to buy “building materials” – wiring, trim, metal, screws. They buy all of those, and then we buy the “finish materials” – cabinets, light fixtures, faucets, hardware, and everything else that makes the job look pretty. They know more about how to put up a wall than you, and you know more about how you want this project to look when all is said and done.
If you start buying too many construction supplies for a contractor, the department of labor MAY say that the contractor is no longer a contractor, but is indeed an employee. This can get very confusing and legally dangerous for you as an investor. Make sure you read up on the differences between a contractor and an employee on the Department of Labor website. This is a useful resource for how to tell the difference: https://www.dol.gov/whd/regs/compliance/whdfs13.pdf
To sum it up – Let your contractor get the building materials out of the way, while you provide them with the finishing materials to make sure the job looks like you want it to! They’re there to take headaches away from you, so let them do their job!