Introduction
If you're flipping a property and not using Let's Link Build, you can dramatically reduce your refurbishment costs by acting as your own main contractor. Instead of paying a contractor's margin, you control the programme, tender each trade individually, set payment terms, and negotiate labour costs directly.
This guide walks through how to structure trades, agree payment terms, use valuations, set contracts and make sure the refurb spec matches the asset you own. The goal is simple: stop giving away your profit for no reason.
Why Acting as Your Own Main Contractor Saves Money
Most builders and contractors add a 10–20% main contractor margin on top of the actual cost of labour and materials. On a £40,000 refurb, that's £4–8k straight off your margin.
By taking the role of main contractor yourself, you remove that extra layer of cost and work directly with the trades you need. You're responsible for:
- Scheduling trades in the right order
- Paying them on time and in line with progress
- Co-ordinating materials and deliveries
- Checking quality and signing off work
If you're organised and communicate clearly, you can save thousands without sacrificing quality.
Structuring Your Trades
Instead of giving one contractor the whole job, break the project into trade packages and get quotes for each:
- Strip-out / demolition
- Joinery / carpentry
- Plumbing & heating
- Electrical
- Plastering
- Kitchen & bathroom fitting
- Flooring
- Painting & decorating
This lets you get three quotes per trade, choose the right people for each package and swap out any weak links without losing the whole build team.
Payment Terms: 7, 14, 30 Days
One of the biggest mistakes new investors make is paying trades too quickly or too much upfront. You should always agree payment terms before any work starts. Common structures are:
- 7-day terms: Good for smaller trades or short bits of work. Pay weekly based on actual progress.
- 14-day terms: Works well for medium-sized trades like plastering or decorating.
- 30-day terms: More professional outfits and larger contractors may work on 30-day invoices.
Labour-only trades should be paid in stages or on completion of defined milestones. A small deposit may be reasonable if they're supplying materials, but never pay large sums upfront for work you haven't seen.
Using Valuations on Works
Before you pay a trade, do a mini valuation of the work completed. Ask yourself:
- What percentage of the agreed scope is genuinely finished?
- Is the quality at the standard we agreed?
- Are there any snags or areas that need rework?
Pay in line with progress, not promises. This keeps trades motivated and protects you from overpaying for half-done work.
Contracts Before Any Work Starts
Every trade should have something in writing. It doesn't need to be a 30-page legal document, but it must cover the basics:
- Scope of works (what is and isn't included)
- Start date and expected completion date
- Payment terms and milestones
- Who supplies which materials
- What happens if there are delays or changes
This is where many flippers lose money. No contract means no clarity, and no clarity means arguments, delays and extra costs.
Match the Refurb to the Asset
This is a key point. You must refurbish the property according to the value and location of the asset. Over-specifying kills your margin just as badly as overpaying a contractor.
Example: Terraced House in Longsight
A standard terraced house in Longsight should not be refurbished like a luxury townhouse in Chorlton or a high-end apartment in the city centre. Too many investors burn profit putting premium finishes into assets that don't justify them.
In these areas, buyers want clean, modern, functional homes, not marble worktops and £2,000 bathrooms. Focus your spend on:
- Electrics, plumbing and heating being safe and up to standard
- A solid, modern kitchen
- Simple, clean bathrooms
- Durable flooring and fresh, neutral décor
Spec for the street, not your personal taste.
Don't Cut Prices So Hard That Quality Dies
If you hammer a trade's price down too far, one of three things tends to happen:
- They rush the job to make it worth their time.
- They cut corners on materials or labour.
- They disappear halfway through for better-paying work.
All of those outcomes are more expensive than paying a fair price upfront. Cheap work that has to be redone destroys timelines and profit.
The aim isn't the cheapest possible quote; it's best value for money from trades who take pride in their work and want an ongoing relationship with you as an investor.
Final Thoughts
Flipping is a business. The goal is profit, and acting as your own main contractor is one of the strongest levers you have to protect that profit—when you do it properly.
Break your project into trades, agree clear payment terms, use valuations, get everything in writing and always match your refurb level to the asset and local market. Negotiate hard, but not so hard that quality collapses.
If you want support with construction, project management, or making sure your refurb aligns with your investment strategy, Let's Link Build can help you deliver the right outcome for your budget and property type.