RESTORE THE LAND PROJECT UPDATE

I met with another potential general contractor on yesterday for lunch to negotiate work to be done. This particular general contractor is also the banker who is funding our loan. It is to our best interest to use him because he has more to loose than we do. Our original proposal started out at $350,000 with another contractor. By the time we finished yesterday, our negotiated price is now $285,000 (savings of $65,000 and maybe even lower once project is completed). On top of lower cost, I was able to negotiate additional items be done as well. Such as:

• a new asphalt parking lot with striping included,
• total bathroom makeover for all 3 bathrooms with new urinals, toilets, sinks, etc
• Central Air/Heating for entire church (The original proposal from another contractor was $84,000. This price was too high and we were considering just putting air/heat in sancturay only to lower the price. But, I negotiated with new contractor for a price of $30,000 for complete church).
• I also negotiated with contractor that we purchase most of the material. I have a lot of contacts for carpet, tile, drywall, etc that can be purchased at wholesale pricing and with a discount. This will save even more money.
• All work performed will be guaranteed for the life of the loan. I did this to see how confident he was in his work performance. He agreed (good sign).

Final negotiation was to locked in at $285,000 if any new problems arise it would be the responsibility of the contractor to complete at his expense. Here's how I know God is at work in this project, many contractors will not go for this. I threw a bone at him regarding time frame, if job is completed by 11/30/08 I will give him a 3% bonus. His eyebrows raised because he thought it was on total cost of project. Then I lowered the bomb; "On your profit margin of $27,000!" which equates to $810 (I may round it up to $1000). Also remember, a general contractor is not actually doing the work, he is the coordinator. Always work that to your favor if possible. As well with time frame negotiation I went at this angle for everyday lost there will be a 1% penalty reduction on his contractor overhead. This is to insure a timely completion but I don't it dragged out any further than it has to be. We don't plan to enter our new sanctuary until Jan '09 but he doesn't need to know that.

I write this blog as a testimony of God working things out for our good but I also know many of you are in the midst of a project yourselves and hopefully some of this information may help you.

Be blessed!