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post #1 of 17 (permalink) Old 08-28-2013, 10:54 PM Thread Starter
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Contractors vs Not

It seems like many of the posts lately about bid approval, cost and work required/performed have to do with the status of the vendor. A licensed, insured and experienced contractor with taxes to pay needs a certain dollar amount to complete a job. A craigslist hack will need a lot less. A reputable company that carries insurance but is not licensed or is a one man show comes in the middle. So, my question is this: how do you become a vendor without meeting basic general contractor requirements? Nationals claim all of their vendors are fully compliant contractors, but we all know they aren't. We are being underbid because other vendors have less expenses and less overhead. Why and how do they become vendors that bid against us? By national and government rules these low ballers shouldn't even be vendors, let alone be bidding on jobs. Do they start out approved as grass only then move on to everything else? I know I am rambling on, but this question has been bugging me for months if not years.
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post #2 of 17 (permalink) Old 08-28-2013, 11:23 PM
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this is the system that the powers to be set up...

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post #3 of 17 (permalink) Old 08-29-2013, 01:38 AM
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You do not have to be a GC in my state to do this type of work. I am not a GC and I do it legally.

The trick is that I only do work I can legally perform without a license. And there is a lot that I can do without a specialty license or a contractors license.

The issue is when a company tries to convince or bully you into doing what is not legal for you to do. If you do it then you are working without the proper credentials and insurance and in Florida that can earn you a free orange jumpsuit and a free place to stay for a few years.

My background before this is commercial construction management so I know how to bid a job to make sure all the expenses are covered and I make a profit.

As of late it has become more and more difficult to get profitable bids approved. I had a guy low ball me about a week ago. I wonder if he knows he left over $5,000 on the table. I wish I could set him down and explain how he is hurting all of us.

There is a contractor a couple of towns over who has stated he does not care how much $$ he leaves on the table because he is going to make it up on volume when he drives all of us out of business. He has five crews running hard and fast and will take any work tossed his way.

These guys are not businessmen. They simply have a job and are happy to be able to pay the bills. While the work ethic can be applauded they are still in way over their heads and will most likely loose more when the low balling catches up with them than if they had never started doing this type of work.
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post #4 of 17 (permalink) Old 08-29-2013, 04:17 AM
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Quote:
Originally Posted by MNanny View Post
Why and how do they become vendors that bid against us? By national and government rules these low ballers shouldn't even be vendors, let alone be bidding on jobs. Do they start out approved as grass only then move on to everything else?
Notice how many threads are about new regional inquires? "Hey, has anyone heard of Cornhole Preservation and what do they pay?" There is a new one popping up all the time. Same with contractors. Yes, some are just grass cutters but they all start up with big ideas and they don't last. The guy cutting the legs out from your bid won't be around in 60 days, but there will be five more just like him. Some companies start them out on probationary periods so they skirt all the insurance and cert requirements.
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post #5 of 17 (permalink) Old 08-29-2013, 10:36 AM
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Originally Posted by Gypsos View Post
You do not have to be a GC in my state to do this type of work. I am not a GC and I do it legally.

The trick is that I only do work I can legally perform without a license. And there is a lot that I can do without a specialty license or a contractors license.

The issue is when a company tries to convince or bully you into doing what is not legal for you to do. If you do it then you are working without the proper credentials and insurance and in Florida that can earn you a free orange jumpsuit and a free place to stay for a few years.

My background before this is commercial construction management so I know how to bid a job to make sure all the expenses are covered and I make a profit.

As of late it has become more and more difficult to get profitable bids approved. I had a guy low ball me about a week ago. I wonder if he knows he left over $5,000 on the table. I wish I could set him down and explain how he is hurting all of us.

There is a contractor a couple of towns over who has stated he does not care how much $$ he leaves on the table because he is going to make it up on volume when he drives all of us out of business. He has five crews running hard and fast and will take any work tossed his way.

These guys are not businessmen. They simply have a job and are happy to be able to pay the bills. While the work ethic can be applauded they are still in way over their heads and will most likely loose more when the low balling catches up with them than if they had never started doing this type of work.
What are of Florida do you cover?
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post #6 of 17 (permalink) Old 08-29-2013, 01:30 PM
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Originally Posted by GTX63 View Post
Notice how many threads are about new regional inquires? "Hey, has anyone heard of Cornhole Preservation and what do they pay?" There is a new one popping up all the time. Same with contractors. Yes, some are just grass cutters but they all start up with big ideas and they don't last. The guy cutting the legs out from your bid won't be around in 60 days, but there will be five more just like him. Some companies start them out on probationary periods so they skirt all the insurance and cert requirements.
Industry MO....every time contracts change hands.....

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post #7 of 17 (permalink) Old 08-30-2013, 06:01 AM
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The FS industry uses the word "Contractor" ...but it it is not used traditional sense of what one would normally consider a "construction contractor". I've never seen in the public or private construction market where clients name their own price for a contractors performance or cut an independant bid because HUD/FHA says so. Ya realy need a contracts professional to deal with these outfits be it Regioal or National.
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post #8 of 17 (permalink) Old 08-30-2013, 09:24 AM
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What are of Florida do you cover?
West Volusia County for the most part. We do venture into Seminole and Orange counties for certain clients because they pay drive time.
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post #9 of 17 (permalink) Old 08-30-2013, 02:15 PM
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Had a client tell me that they did not consider this a holiday weekend with the exception of Monday. So they expected all our work orders complete even if it meant working Sunday.
Sorry we are independent contractors which means we make our own hours. If that is the case then I will have to bill for health insurance and over time since you will now be dictating my hours which classifies me as an employee.
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post #10 of 17 (permalink) Old 08-30-2013, 04:04 PM
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Originally Posted by JFMURFY View Post
The FS industry uses the word "Contractor" ...but it it is not used traditional sense of what one would normally consider a "construction contractor". I've never seen in the public or private construction market where clients name their own price for a contractors performance or cut an independant bid because HUD/FHA says so. Ya realy need a contracts professional to deal with these outfits be it Regioal or National.
HUD/FHA do not cut the bids....
that is strictly with the go between....SGP is under indictment for RICO violations right now...50 page complaint t the court....

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