Expectations (construction) lol

[OCMerrill]

Do you have a timeline on this phase yet?

Not currently however becoming more serious about it by the day.

 

[OCMerrill]

In CA we can only get $1000 up front or 10% if job is under 10k.

How much is he paying for the bathroom? And where at?

I've been asking for 50% up front to my HOA's as of late. These Bimonthly meetings and other delay issues are really starting to sting.

Keep in mind HOA's are corporations so the 10% thing is not the issue.

 

[NicPaus]

I have a few contractors that I know and have worked with. That won't do a job unless they get 50% to start.

I usually don't ask for a deposit but it can bite you sometimes. Regular customers no deposit. But it's not always fun being the bank. I have 5 jobs owing me money now. Sitting here waiting on a county inspector. If I pass I invoice.

 

[calkid]

10% mobilization, bonds and insurance then a pre approved detailed schedule of values. Front loading gets cut and the schedule of values has both labor and material line items. After 43 years of this crap, I don't have the patience anymore.

 

[McKay]

EC. Never have I requested a deposit to start or show up a project. Bill at the end of the month and tickled pink to be paid within 30 days of invoicing though that rarely happens.

 

[monkeyswrench]

I dint deal with projects very often so I can't speak to the processes
But, do you all think the problems stem from everyone being so damn busy because there's so much work out there?

In my little bubble, this is absolutely true. There's a ton of work, and money to be made. Guys that aren't really contractor material have quit, and started their own deals. That's great, everyone wants a piece of the pie. With the newer guys, they're trying to learn "the other side"...and it doesn't come easy or quick. This seems to throw a wrench in the established guys business. Not from from undercutting or such, the established, skilled guys will always get their work. What I see happening around here, the new guys not getting their deliveries scheduled in timely manors, maybe payments as well. This throws off the tempo of things for other guys waiting for the same services.

We also have a rash of guys out here that have grown big, but too quick. Some of them are very skilled in their craft. Unfortunately, finding a crew that can match your needs, at least out here, is near impossible.

 

[spark2678]

Commercial EC in SD @ $40M/yr. SOV for any jobs larger than 100K, sometimes for smaller. Frontloaded with 10% mobilization, submittals, and bond. For the smaller contracts we just progress invoice without an SOV and it's usually not a problem. Most of our business is tight knit with same customers. 45-60 day payment pretty typical, gov't is usually 90-120.

 

[C-2]

On residential, some Cali contractors get around the 10%/$1k law by submitting a large invoice to the HO on the second day of the project. But the contractors law covers that angle too - you cannot accept payment that exceeds the value of the work performed or materials delivered. Usually not an issue unless it goes legal.

 

[braindead]

Did anyone else notice the 9X9 floor tile? There's a 99.9% probability the tile and adhesive contain asbestos.

Shush, we don’t use the “A” word in California

 

[Mr. C]

I never ask for a deposit nor do I ever get paid before 30 days. I can’t stand subs who want their money within a week.

Good on you. I have zero issues with a percentage down. Some percentage part way through. As long as progress is going forward.
I will never make final payment again. Until the work is completed and I am completely satisfied.

 

[CarolynandBob]

What would always make me laugh is went a general would want us to bond the job. We always said no unless it was a prevailing wage job. My argument was " you don't pay us for 45 days after we complete work, so YOU should provide us with a bond"

Yes I do understand the need for bonds. Some get half way though a job and go bankrupt, but we were a 30yr ish old company.