Reply With QuoteIf the GC did not pay you a dime on this project.....ever, would you be able to personally pay your suppliers and labor? If not, walk.
By the way getting material from home depot is a major pain
If the GC did not pay you a dime on this project.....ever, would you be able to personally pay your suppliers and labor? If not, walk.
I have the chance to bid on a very large project "to me", the problem is I do not have sufficient operating capitol for a project of this size. is there a way to establish a line of credit based on the particulars of the project? I really don't want to leverage my personal assets, I don't think that would cover it anyways. I cannot walk away from this until every option has been explored. this project is going to happen with or without me and I need to step up and make this happen. btw the way the way some of the proceeds from this job will be used for a new boat so this is directly boating related.
Looks like you might be too busy to start/finish my project? :idea:
Another option you might want to consider is mile stone payments. Ask for a resonable domwn payment or deposite to start the project, when you hit the 25% completion mark, another payment is due, and so on. This allows you to get started, and if somthing gose wrong in the middle your not out for the whole cost of the project. I've worked on several projects with this type of arangment and it seems to work well for both parties.
legally he can only ask for a grand up front, but after 5 days after work started he can get the balance. Prob is if you need to buy 100% of materials up front your skrewed.( unless you put it in the contract that they supply the materials.... which most people will not do)
Looks like you might be too busy to start/finish my project? :idea:
no worry's Al this if this job happens its like 8-10 months out.
All depends on how your set up... If your set up as a corp ( 90% of the time you should be) its normally not a prob. All depends on the contract.
This makes absolutely NO difference at all. I bet you call the number for the Nevada Corporation that advertises on the radio too.
FYI If its a public works job, financing is a cake walk.
If it has anything to do with housing, Its going to be very hard to get financing. Comm'l is about the same at this point.( unless its for a very big corperation)
Actually public works and government jobs are often more difficult to finance and cost more to do so when it comes to contract or factoring financing. That is because although it is almost guaranteed money, they almost always take longer to pay. Lenders don't like to go out much farther than 90 days so many times they won't do it and if they did, it will cost.
WW, give me a call as I'll be on the road today and not be able to surf HB all day.
I agree with HR totally. One thing is a bit funny here. Why do you have to purchase 100% upfront? If you do have to do this try to work with the general (if you are freindly with them) to pay this money to you once you have issued a PO. Another thing if you don't have a history with suppliers they WILL insist you sign a personal guarantee. When I first strarted this company every supplier I filled out a credit app with demanded I sign it.
If this is a general that you have not done work for or a general contractor that you have some kind of lengthy history with I would walk. At the end of the day the project may go well and you may make a dollar or two but it could go very bad and you could be left holding squat. Like someone said earlier there is no way to make a quick buck, get in it for the long haul and work it over time. At the end of the day if you could make this fly are you willing to take that risk? I know a lot of people who have and it has worked out for them but I know a lot more that have been bit in situations like this. I hope this helps.
An opinion for what its worth,
If you do not have credit lines in place with your suppliers and possibly a credit line to cover payroll for the 90 days you can expect for payment from the time you bill, I would guess the job is over your head.
This opinion is based on the little information you have presented. If it is housing related in any way I would run the other way.......LOL thats what I have done.
Don't forget to check your liabilty insurance to make sure it meets the requirements. You'll wait even longer for payment if your certs are not in order. If the project has a wrap policy I would make sure you fully understand it before signing. I'm not a fan of wrap policies.
I would start building your business credit in anticipation for the next time something like this comes your way if you want to do bigger jobs. Look into opening job accounts at your supplier. A job account will give the supplier lein rights and they will be more likely to extend credit. The General will likely have to write two checks when you bill him, one for the material and one for the rest of the draw.
Again this is based on the limited information you have presented, and my experience as CEO of a large production plumbing construction company over the last 9 years. I sold my stock in the company 5 months ago........ Now I'm a bum.
I am seriously considering only bidding on a portion of the work that I am currently set to handle. I will have a meeting with the CM next week to look at the build schedule and how they are planning on phasing the job, this will give me alot more insight as to my financial obligations, cashflow options and payment schedules that they are willing to work with.
Posting Permissions