We just started a big job. We are subbing the framing on some condos. Big-time contractor is running the show. We started on the fifth of june. Turns out they only pay once a month, on the 10th–if they have an invoice by the 1st. No down payment was received. It is a good job an we need the work. what do you do when they only want to make progress payments? Due to the slow winter I can’t afford to wait 5 weeks to get paid. Anyone had this situation? Any input would be appreciated.
Thanks,
Dave
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Replies
Needed the work, huh?
Don't tell us now, that you were blindsided by the payout terms.
About all you can do now, is to try to front load your draw requests, so that after a couple checks are received, you aren't into your working capital so much, if at all.
Good luck.
What you are into is the everyday standard, billings and payouts, when you go into work from light commercial on up.
Work with your material suppliers so that you don't owe them until after the 10th. And don't be late invoicing the GC.
talk to your banker about a working line of credit and price the cost into your over head on any future work.
And don't take jobs in the future until you know what the payment schedule is.
Then hold them to it. Some shysters like to stretch it out 2-3 days later with each check until your five weeks turns into two months and then voila! they found another sub to work cheaper or they go out of business....
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Not be a jerk, but if you need the money shouldn't your first concern be: how to get the money?
Get a loan. Live and learn.
Glamorous
Edited 6/6/2007 6:52 pm ET by dustinf