Vendors and Trades – FAQ

The design agreement says you are not acting as a GC, but you are hiring and managing GCs and Subs?

In NJ, I am able to hire the GC and/or trades and oversee them. My rule of thumb is if the project requires a permit, I bring in a GC. If not, in NJ, I am able to hire painters, mill-workers, an electrician to swap out an existing fixture, etc. Our “Trade Standards” doc is helpful to clarify this.

When do you present the “Trade/labor” proposal to your client? Depending on the scope, oftentimes the labor can be as much as the materials – do you discuss this up front anywhere? How do you charge for this?

There is not a separate agreement. When the scope includes a renovation, I make sure to point out the line on page 11, “This Investment Estimate does NOT include contract labor for renovations.” To manage client expectations, we will go to bid so that they can see that the contractors pricing is fair. We present ballpark quotes from our Trades at the Conceptual Design Meeting. After the CDM, we have the client sign off on the investment agreement with our trades estimates. We then present the final proposals, along with everything else, at the Detailed Design Meeting.

I love the idea of negotiating deeper discounts, but I’m a new firm and am pretty far from being able to do this. What else can I do?

I completely get it! I remember wandering the halls of the D&D in New York, just trying to figure out who’s who in this industry, let alone having accounts set up. When you are first getting started, look for a local local trade showroom that sells multiple to the trade lines (without having to do your own opening order) or an online buying group like The Designers Collaborative.