I have a question that I really don’t know how to approach.
I am a class c contractor, I have never worked for a Big class A
contractor before all my work has been word of mouth and until
last year done on a handshake both commercial, and residential.
Small masonry ,stonework,and repair work.all my jobs were brokedown
into three payments.–Materials–overhead–profit/taxes.
Now I have a chance to bid on some state work through a big GC
but with everything said and done it would be 90 days before I
would be getting paid after I had completed the work with 10% being
withheld by the state until the entire project is completed. Is it customary
for the sub. to have to furnish all materials for a project when he works
through a GC, or do the GC ‘s suppose to furnish their own
specified materials?I know my supplier isn’t going to wait 90 days
before they want their money. maybe im wanting to get to big
for my britches, I don’t know.But the red flags are a flyin for this ole boy.
thanks for any ideas and thoughts D.W.
Replies
D.W.
Yeah I see lots of red flags for ya too.
And you know what happened to the bull when he chased the red flag.
SamT
thankyou emmmarrr sam [Mr. Sam] Ive been reading your other
discustions I should know better , ive already lost one buissness,
in my life.i should hope that was enough. I dont mind furnishing
materials -to a certain $ figure- but when it comes to kkk's i think
that is a little to much thanks again. D.W.
another thing to remember is that government contracts may have terms you are not familiar with, that as a sub, still apply to you. Each government entity does things differently
bobl Volo, non valeo
Baloney detecter
Here's what it says in my book.
Subs never ever supply materials. (fasteners--sometimes adhesives).
Subs have the right to negotiate their own deal--they write their own contract etc.
Play someone else's game at your peril.
LGardenStructure.com~Build for the Art of it!
untill you got the cash...not credit...stashed away to float untill the big pay-day, I'd sit and keep dreaming of making it big...otherwise your staring down a awful nightmare.
trust me.
knowledge without experience is just information.... Mark Twain
http://www.cobrajem.com
When I first went into business I read an article that said one of the major issues to success is to make sure you are doing business with clients that pay at the same rate that you pay your suppliers in terms of time. So if your suppliers are ok with 45 days then you need to do business with people that pay in that period of time etc.
If you don't you will only spend your days chasing cash and not doing work or getting more work. That information has been a big help to me. I occasionally work for someone that pays on a different schedule than me but only if I know I can afford to wait because it is a small amount or I have enough in the bank to float it. DanT