G
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·Contacted by company today. Wondering if anyone has experience with them?
Thanks!
Thanks!
Any Info? New River Construction MI??
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d+jhomeservices said:
You are correct, but this is the environment that is P&P.
MOST folks on this forum and else where simply do not understand.
Sure you can say no, KMA, I'm not going to work for that. Makes no difference to the companies that control the whole thing. There are 50 out of work guys waiting in the wings to take your place.
Not to mention that along with the slow pay is that the pay is very cheap. Break even if you are lucky kind of cheap.
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3,186 Posts
50 guys in line waiting for your work isn't true in all areas of the country. We have recieved the calls from Brokers when we kicked a National like Safeguard or FAS to the curb, telling us that they can't get their trashout done because the National can't find a contractor to do the work. Too many work order/photo/fine print requirements are keeping the good companies away and the inept around only until the first check (or part of it).
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568 Posts
more like how soon you will be bankrupt.
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2,340 Posts
60-90 days is pretty standard. If you aren't solvent this may not be the right industry for you.
We just completed a roof, siding, and drywall job. Sold it 45 days ago and got half down. That half covered Materials and labor. We had to wait 45 days for our profit.
We did a trash out and massive yard clean up direct for a bank out of Cincinnati total was around 11k. We had dump fees, labor, rental equipment, all that to pay up front that was in may. I'm still waiting on payment. It will come but just because it's a direct client doesn't necessarily mean quick pay.
In many businesses net 60-90 is common. I know Walmart, GE, General Motors, and several other companies stretch their contractor out to 120 days all the time.
We just completed a roof, siding, and drywall job. Sold it 45 days ago and got half down. That half covered Materials and labor. We had to wait 45 days for our profit.
We did a trash out and massive yard clean up direct for a bank out of Cincinnati total was around 11k. We had dump fees, labor, rental equipment, all that to pay up front that was in may. I'm still waiting on payment. It will come but just because it's a direct client doesn't necessarily mean quick pay.
In many businesses net 60-90 is common. I know Walmart, GE, General Motors, and several other companies stretch their contractor out to 120 days all the time.
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3,186 Posts
The negativity comes in when dealing with third party vendors. 60-90 day pay periods can cost you lien rights. Lots of stories of regionals sweeping the money off the table and folding up their tent during those pay periods.
You can get your first order today, get paid for it in late October after they add their discount, QC back charges and/or accounting errors. Multiply the orders past what you have in working capitol so you are using credit to pay your subs and overhead and your future as a self employed businessman teeters on the decisions of an early 20's coordinator whose quarterly bonus depends on hitting his "numbers". Did anyone advise you to operate as an LLC? It should be obvious why.
We completed an interior paint and some drywall work on a property for a bank. About 9k billed to them direct. The vice president at the bank called personally to apologize and get another copy of their contractor agreement since they lost the first one. We got our check 4 days later. That doesn't happen when dealing with nationals.
You can get your first order today, get paid for it in late October after they add their discount, QC back charges and/or accounting errors. Multiply the orders past what you have in working capitol so you are using credit to pay your subs and overhead and your future as a self employed businessman teeters on the decisions of an early 20's coordinator whose quarterly bonus depends on hitting his "numbers". Did anyone advise you to operate as an LLC? It should be obvious why.
We completed an interior paint and some drywall work on a property for a bank. About 9k billed to them direct. The vice president at the bank called personally to apologize and get another copy of their contractor agreement since they lost the first one. We got our check 4 days later. That doesn't happen when dealing with nationals.
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3,186 Posts
Working locally means you have a better chance of getting word of mouth referrals. We receive unsolicited work from realtors we have never met based on a good word from an existing customer in their office. Doing preservation work for out of state companies is a finite thing; running your operation as a standard general contractor with customers you see see and shake hands with is long term and less risky.
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1,059 Posts
I'm not negative. :whistling2: I just posted an extremely help way to perform a trash out on another thread.
Tell you what, here is some more helpful info. Look up Michigan Realty Solutions. They're in your neighborhood and should be looking for contractors. You're welcome for this helpful tip brought to you by BRADSConst :thumbsup:
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2,340 Posts
You are a newbie with a toe in the water. You don't understand the vibe out there. Get back to us after 18 months in the business and a few chargebacks, no pays, rule changes, clients going out of business, and we will see where your attitude is.
It's not negativity it's pragmatism.
It takes 60-90 days just to be eligible for pay, not to get it. Once that time comes, they take whatever amount of $$ they got from their client and divide it up between all their contractors. Its really something else....
Whoa there junior! In case you haven't noticed the responses on here to your inquiries come from VETERANS with years of experience in this business. The comment "its not going to kill me like it would some of you" does not apply to anybody responding to you!! Reason being we/they are smart enough not to let that happen or we/they are no longer involved in this circus. Its not negativity its EXPERIENCE and we/they are merely trying to answer your inquiries and point you in a positive direction whether or not you heed the advice is of your choosing. Its only to help not hinder.:thumbsup:
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212 Posts
In a nut shell, No. No one knows a sure fire way to get more local work. Beat the pavement, realtors, Investors, private money guys. You gotta bring something to the table that they are not currently getting, or you have to make their life easier. That's a hard thing to do when your new and unknown.
I've learned over the years that if your there all the time and you can stay relevant in the industry, eventually they will come to you.
Very few people in this industry are in it because they like it. Fewer have taken the time to identify the direct problems that they are having and work to solve them. That being said, some problems can't be solved in a way that keeps you in the business. I firmly believe that there are some states and locations where preservation contractors simply cannot make money. For me preservation has been my only business for a long time. I've worked for the same 2 companies since 2006 with little issues. One of those companies is Safeguard which, to say is frowned upon around here is an enormous understatement. The other is a small 4 contractor regional co-op in my area. We cover central Florida for a National company (which i will not name due to agreements I have with my partners) With the National our discount is 20% and 3 of us pay an additional 10% to the founder. For that 10% we get an updater, and net 7 day pay. I have been approached by regional owners that have a need in my coverage area, but the above deal is non negotiable for me so its just Safeguard and the co-op for me for now.
In my opinion if you work for a regional, you should not ever wait more then a week for your money. I read a book a while back that said that every person involved in a business relationship must add value, period. Regionals that make you wait for your money have no value. This is not a jab at anyone, its just an opinion.
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