Bidding for slow pay GC?

Darren@Partners

Have opportunity to bid some commercial and hospitality work for an area GC. Problem is, after checking with colleagues, find out they're pretty slow on paying -- 90 days. Am considering how to approach the PM. Really can't bankroll anybody for 90 days and a bit apprehensive about the upcoming conversation. The staff has pretty well turned over in their office (another bad omen), but they seem to have quite a bit of work. Which really doesn't matter if doing it breaks me carrying them. I believe the problem is more on the commercial side as opposed to the hospitality division. Feeling a little bit like the banker who's afraid to loan. Want the work obviously, and bid dates are looming. Think I better listen to that little voice.

Whitey97

90 days isn't that bad. Include in the contract net 15, net 30. Whatever. If he wants you, make him pay for it. You just have to put your foot down. You make the rules in the contract!

muddermankc

2 weeks ago I started apt complex in grain valley, the first guy did 1 building 350,000 ft and didnt pay anyone and bounced. Now im doing 2nd building. I know the money is good, my supplier uses same bank that is financing project, buuuuuuuut i have to wait till May 1st to draw any money. Im small company and its only 6 weeks total but man, need some now. I sent email asking for 10% this week to continue rolling on this thing. Not gonna get it. Plus I signed the contracts and the retention is like 60 days so just gonna have to wait. Commercial jobs can have killer profit but its hard to wait so long for the money. But being that your job will probably be the only show in town guys will wait to get paid. My guys are waiting to get paid on may 1st, but i told them that if they need to bounce out to do small job to get cash i understand, just dont leave me with no one working, so far so good. Kicking myseld in the a=s because i could have said yes i will come take over this job that is 3 weeks behind from your last guy, yes i will touch up their sh+t work in 1st building and tape every sprinkler head that wasnt taped, but i need 10% down before i can start, i bet i could have got it too, but now im contract bound and waiting for pot of gold at the end of rainbow. It feels good to see all that wood waiting to be rocked though, been a while since i had 1 this big

brdn_drywall

may 1st your guys are probably gunna bounce fosho, no way to get your bank to help take in the contract explain progress and draw date if ya been in buisness for a while and did your banking at the same institution for a while they should be able to help

muddermankc

no theyre staying, were all in too deep 3 more weeks!!!!!!!!!!!1

brdn_drywall

lol desperate times call for desperate measures these guys may need to eat food once in a while and not just sand without a mask to fill there bellies with drywall dust, and resort to eating compound out of the box, but if it comes to that go with prorocs lite finish i hear it tastes like jalapenos

Darren@Partners

Know a guy who'll loan on contract at 3% per month but that 36%, not a loan shark, but the rates are. Will probably take a pass on the commercial and muscle up on the contract on the hospiltality job with the supply house and demand two weeks draws. Think I can swing the contract language to my favor in this manner.

brdn_drywall

i know guys like that too darren but if ya don't make yur payment on time you'll be working out of a wheelchair

Darren@Partners

Not using him myself, but a friend (just starting on his own as a framer) is. Kind of gonna hide and watch, cause after he borrowed 10K last month, his GC has been dragging his feet on paying.