Bids & Progress Payments - REO Property Preservation Forum
 
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post #1 of 5 (permalink) Old 03-23-2014, 01:16 PM Thread Starter
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Bids & Progress Payments

Hi
The company that I do work for, I was informed that on large awarded bids, you can request progress payments. I gather this not true of most of the preservation companies?
Based on what I'm seeing on the large amounts of $ due some of the subs, I gather this doesn't take place
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post #2 of 5 (permalink) Old 03-23-2014, 01:22 PM
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Quote:
Originally Posted by Prather Guy View Post
Hi
The company that I do work for, I was informed that on large awarded bids, you can request progress payments. I gather this not true of most of the preservation companies?
Based on what I'm seeing on the large amounts of $ due some of the subs, I gather this doesn't take place

Standard practice in the construction industry, not so standard in preservation, or at least it's not advertised much.

I would not take on any large projects (probably $7500+) without money up front anymore. All my current clients offer material payments up front and progress payments if required. They require more PITA paperwork for this obviously, so that is why I say I only do it on large projects.

Iíve already told you more than I know.
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post #3 of 5 (permalink) Old 03-23-2014, 01:54 PM
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Many of the contractors that run large balances with nationals get there by chunks at a time. $400 tarp, $2100 trashout, $450 basement pump out, etc over and over and over each month. If it is 60-90 days to get paid, then they have a lot of money floating out there.
I do recall several of the nationals with policies for upfront money if the job was over a certain amount, but if you didn't know to ask, you probably wouldn't get it.
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post #4 of 5 (permalink) Old 03-23-2014, 04:18 PM
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Sure you can ask for progress payments on your bid. We wouldnt start a project without progress payments for projects $25,000+. We ALWAYS built in a 50% profit margin due to the PIA factoring. Usually netted 35-40%.
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post #5 of 5 (permalink) Old 03-24-2014, 06:36 PM Thread Starter
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I wanted to thank those that supplied responses for sharing their wealth of knowledge & wisdom. It conveyed a lot of information that I did not completely understand previously.

I thought this was a better than just doing a thanks
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