**SUBCONTRACTOR**
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FLOOR COVERINGS
SCOPE OF WORK

Objective of this Scope of Work

► To ensure that Floor Coverings are installed in a manner consistent with all applicable building codes, manufacturer's instructions and warranty requirements, and acceptable construction practices.

Terms used in this document

►SITE SUPERINTENDENT: shall refer to any Builder representative with authority to enforce this Scope of Work.
►SUBCONTRACTOR: shall refer to the Subcontractor's organization, its employees, or any representative of the Subcontractor assigned the authority to perform per this Scope of Work.

Acceptable Performance
► Floor Coverings is divided into four sections: General Details, Wood Floor Details, Vinyl/Tile Details, and Carpet Details. All four sections are included in this Scope of Work. The General Details apply to all Floor Coverings Subcontractors. The Subcontractor should concentrate on the Floor Coverings details pertinent to its accountabilities. The Floor Coverings Subcontractor should also become familiar with the details of the other Floor Coverings sections to determine how to make each installation as efficiently as possible. Payment will be made for each phase as it is completed, inspected and accepted.
Floor Coverings: General

► A new set of plans is required for each house. Plans are subject to changes and modifications. It is the responsibility of the Subcontractor to have the new plans before beginning work. The Subcontractor will correct any errors that occur from using an incorrect set of plans at no cost to Company.
► All carpet, pad, vinyl, tile, parquet, or hardwood flooring shall be of a type, brand, and grade specified and approved by Company. These standards may not be changed without the written approval of Company. If the type, brand, or grade is changed the Subcontractor must furnish to Company warranty and other information.
► All floor coverings shall be installed per the manufacturer’s instructions, using materials, fasteners, adhesives, etc., as recommended by the manufacturer.
► The Subcontractors shall furnish a turnkey job. This job shall include the preparation of the floor, the installation of underlayment, the installation of the floor covering itself, and full Warranty on all materials (if provided by Subcontractor) and installation.
► Trained, experienced personnel shall do all installations.
► Seam lines are unavoidable, but there shall be no visible gaps in any floor covering.
► No visible gap around any wall or baseboard is acceptable.
► Color selections shall be made available to the Subcontractor prior to the beginning of the job.
► All floors will be fully prepped and clean before any floor covering is installed.
► If any floor is too damp, is not level, has large cracks, or is otherwise unsuitable for the installation of the floor coverings the Site Superintendent should be notified immediately.
► The Subcontractor shall apply underlayment, floor-leveling compound, adhesive, etc., as required to achieve a professional, high-quality finished product.
► The Subcontractor shall furnish heaters as required.

Floor Coverings: Wood Floor

► No point on the surface of a wood floor shall be more than 1/4 inch higher or lower than any other point on the surface within 20 feet or proportional multiples of the preceding dimensions.
► All parquet and hardwood flooring shall be installed without bows or bubbles, and shall be laid square, plumb, and per the manufacturer’s installation instructions.
► Gaps between strips of hardwood floorboards shall not exceed 1/16 inch in width at time of installation.
► Deflections and gaps in parquet and hardwood flooring shall not have more than a 1/4-inch ridge or depression within any 32-inch measurement.
► All blocks of parquet flooring shall be as close to the same color as possible. Blocks of an obvious color difference will not be accepted. Final inspection of all parquet or hardwood flooring shall be done in sunlight and also in normal house lighting. Parquet and hardwood flooring cannot display any defects that can be readily seen at a distance of 6 feet under these conditions.
► The contractor shall install the grade of hardwood as specified by the Work Order. All wood should be consistent with grading stamp as specified.
► Slivers or splinters that occur during the installation of the flooring are unacceptable. Remove and replace the entire piece of flooring containing the sliver or splinter.
► Crowning in strip flooring shall not exceed 1/16 inch in depth in a 3-inch maximum span when measured perpendicular to the long axis of the board.
► Parquet and hardwood flooring must be firmly attached to the floor. It shall not bubble or come loose within the Warranty period.
► All parquet and hardwood flooring shall be cut to fit within 1/8 inch of walls.
► Parquet and hardwood shall be covered to protect it from damage during the remaining construction of the house.

Floor Coverings: Vinyl and Tile

► Vinyl or tile shall be run under all door casing. Cutting around door facings is not acceptable. No cuts shall be made that allows the underlayment or slab to be visible.
► Vinyl or tile shall not be cut around commodes. The commode shall be lifted and vinyl or tile placed so that no cut areas are visible when the commode is reset.
► All vinyl or tile shall be cut to fit flush to baseboards.
► Vinyl or tile shall be cut large enough at all ducts so that when the grill is installed no gaps or cuts are visible.
► Patterned vinyl shall be laid in accordance with wall deflections to reduce visual deflection of the wall against the pattern.
► Patterns at seams between adjoining pieces shall be aligned to within 1/16 inch.
► Vinyl or tile shall be covered to protect it from damage during the remaining construction of the house.
► Vinyl shall be firmly attached to the underlayment or slab. It shall not bubble, show nail pops, or come loose from the adhesive during the Warranty period.
► All vinyl adhesive shall be thoroughly cleaned from vinyl before the job will be considered complete.
► All vinyl or tile shall be inspected in both sunlight and normal lighting. Any defects visible from a distance of 6 feet under these conditions are unacceptable.

Floor Coverings: Carpet

► Carpet pad shall be of the grade and type specified on the Work Order.
► Carpet shall be installed per the manufacturer’s installation instructions with the fasteners approved by the manufacturer.
► Carpet shall be installed flush with the inside edge of the tack strip. Any short-cut carpet in wall or foyer areas will be replaced. Patching is not acceptable.
► Carpet shall be firmly attached to the tack strip and shall not come loose within the Warranty period. Tack strips shall be firmly attached per the manufacturer’s installation instructions.
► Carpet shall be butted firmly against parquet or hardwood flooring.
► Transition strips shall be used at the junction of carpet and vinyl or tile. The strips shall be firmly anchored. Lippage greater than 1/16 inch is considered excessive.
► Seams shall be as inconspicuous as possible. Gaps are unacceptable.
► All carpet shall be inspected in both sunlight and normal lighting. Any defects visible from a distance of 6 feet under these conditions are unacceptable.
► The Subcontractor shall be responsible for any shrinkage or shortage of the pad during the first year of Warranty coverage.
► Any items found during the final inspection that need correction shall be corrected before payment will be made.

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🏅 Create a Business Worth Owning

📶 Integrated step-by-step program using all tools and systems

💡 Two coaching sessions per month

📊 Monthly scorecard to measure the journey

🛠️ Tools: All tools (Chart of Accounts, Cost Codes, BBOS Estimator, Builder Business Model Canvas, SubManager, ClientManager, Policy Handbook, Management Scorecard).

🤝 What we do together:

  • A 180+-day engagement covering financials, estimating, subcontractors, clients, and workforce.
  • Coaching sessions every two weeks to review your real numbers and coach policy implementation.
  • A monthly “Business Health Scorecard” that shows where you are strong and where to strengthen.
  • Focus on building a business system that allows you to:
    • move out of day-to-day management;
    • develop a valuable legacy enterprise; and
    • create a business with significant market value.

💲 Investment: $3,500-$5,000.

🪜 Progression logic:

  • This is the capstone — combining all five prior steps into one system that builds a business worth owning.

🎯Outcome: "Now I control my business, not the other way around."

👷 Manage Your Workforce

👷‍♀️ Put the right people in the right position

📄 Create an Organization Chart and Position Descriptions

📄 Integrate employment policies

🛠️ Tools: OrgChart, Position Descriptions, Company Policy Template

🤝 What we do together:

  • Create a Company organization chart.
  • Create Job Descriptions.
  • Implement employee policy handbook
  • Identify inefficiencies in labor margins.
  • Discover hidden labor costs.

💲 Investment: $1,250-$1,500.

🪜 Progression logic:

  • Labor is usually the last controllable variable — now you are tackling optimization and efficiency.

🎯Outcome: "Now I am in control of the work that must be completed, and my employees understand their positions and accountabilities."

🗣️ Control the Client Relationship

📄 Client log, Change Order system

📄 Notice of Completion, Draw Requests

📄 Communication templates for disputes

🛠️ Tools: ClientManager, Client Contact Log, Initial Specifications, NAHB Residential Construction Guide

🤝 What we do together:

  • Implement a structured client management system.
  • Introduce the Client Contact Log.
  • Provide templates for change order and scope adjustments.
  • Train on reducing disputes and managing client expectations.

💲 Investment: $750-$1,250

🪜 Progression logic:

  • With the business financially stable and risk-protected, control of clients and their expectations ensures smoother operations and fewer profit leaks.

🎯Outcome: "Now I can manage clients and their expectations without projects spinning out of control."

🧯Identify and Manage Risks

🏠 Project Risks:

  • Site Risks – site injuries with no primary insurance coverage.
  • Reputational Risks – You don’t deliver what you promised because your subcontractors were not on the same page.
  • Capacity Risks – You can’t deliver what you promised because you don’t have the organizational structure to support your sales.

🔍 Management Risks:

  • Company Structural Risks – You don’t have the right people in the right positions.
  • Promotional Risks – Your market doesn’t know or care about your products.
  • Competitive Risks – You haven’t differentiated your company, so lowest price is the only way you can compete. 
  • Market Demand Risks – a bad market cycle will cripple or destroy your business.

🛠️ Tools: SubManager, Organizing for Success, Builder Business Model Canvas, Budgeting Forecasts

🤝 What we do together:

  • Implement Terms and Conditions, Scopes of Work, and Inspection Reports for all Subcontractors.
  • Review how you track subcontractor insurance and compliance.
  • Analyze your organizational structure to optimize production capacity.
  • Review your business model.
  • Create “Expected Case”, “Best Case”, and Worst Case” budgeting scenarios.

💲 Investment: $1,000-$1,500

🪜 Progression logic:

  • After financial clarity and profitable estimating, risk management provides the next layer of company stability.

🎯Outcome: "Now I can reduce or transfer risk exposure; identify and appeal to my primary market; and plan for any type of economic environment."

🧮Price with Confidence

🔍 Audit your estimating process

🔎 Review all active projects monthly for budget-to-actual performance

🔍 Debrief every completed project for profitability and work flow

📶 Install a margin-tracking dashboard

🛠️ Tools: BBOS Estimator, Overhead Calculator, Completed Project Profitability Report

🤝 What we do together:

  • Audit your current estimating process.
  • Benchmark your margins against industry and market standards.
  • Optimize estimating margins for maximum profitability.
  • Track true budget-to-actual expenditures.

💲 Investment: $750-$1,250

🪜 Progression logic:

  • Once finances are stable, you can sharpen your pricing to stop leaving money on the table.
  • You’ll know the margin to use to make sure overhead is allocated profitably. 

🎯Outcome: "Now I can bid jobs knowing I'll profit, not just hoping for profit."

💰90-Day Financial Reset

🗄️ Rebuild Chart of Accounts on NAHB Model

🗃️ Rebuild Cost Codes on CSI model

🛠️ Tools: Accounting platform, NAHB Chart of Accounts, CSI Cost Codes, Management Scorecard

🤝 What we do together:

  • Access to your accounting platform is required.
  • Rebuild your Chart of Accounts for project-level profitability.
  • Create and align Cost Codes so estimating, job costing, and reporting all “speak the same language.”
  • One-on-one coaching call every two weeks during the program to interpret your numbers.

💲 Investment: $1,500-$3,000

🪜 Why start here?

  • Without financial clarity, nothing else matters.
  • The reason you are in business is to make a profit. 
  • Do you KNOW if you are doing that?

🎯Outcome: "Now I know if my business is profitable and my business model is sound."

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