# subs- do you check up on new GC's?



## huggytree (Nov 3, 2013)

ive been getting tons of new calls from GC's who need me immediately. All have been problems in multiple ways...late payment being among the issues.....so when it happened again this week I decided to check up on this new remodeler...I talked to an existing sub that I know and looked into my records and found one of his explumbers....they all agreed that late payment was a issue with this builder.....

so I get home today, he accepted my bid and wanted me to start in 3 days......I emailed him back saying no thanks.....told him I checked up on him and found he was a late payer.

he asked who the tattler subs were...then emailed me back and forth 4+ times...finally admitting that he does pay slow.....but now its my fault the job will be delayed ...he offered to pay 1/2 down....

nope!

the GC's may finally figure it out when more subs like me confront them.....of course he thinks its my fault his job will sit for a week....when its his fault for bad business practices finally biting him in the *ss

Fire that GC!


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## Warren (Feb 19, 2005)

Late payers can be ok if you get a deposit. We usually check with other subs as well as the local lumberyard. Always better to check them out prior to submitting any bids.


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## Metro M & L (Jun 3, 2009)

I don't understand. You didn't wake up this morning and think to yourself, "if only there was a demanding high standards guy that wanted a deep discount who would pay me when he gets paid that I could work for?"

Why not negotiate it. 75/25 And you'll drop the deposit percentage every time you do a job and he pays as agreed.


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## blacktop (Oct 28, 2012)

I'll check up on your Mamma !! If she wants me to fix a small crack in her kitchen ceiling! G/C or H/O that I don't know?? I call around To see what their story Is.. With me knowing many trades In a large area helps.

But ..Most times that first phone call tells all.


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## generalnobody (Mar 12, 2014)

True enough its "buyer' beware out there. Its all part of your contract with someone, regardless of whether its a homeowner or a builder. If you don't have expectations laid out when you start working for someone, then theres bound to be problems. 

When you do work as a sub, the principal will generally have to wait for the next draw from the owner after the work is complete. Depending if that draw is scheduled for after your work is done or at some further stage, the money may not be available instantly. In some cases, there may be deficiencies with your work that may cause a delay in payment by the owner also. 

In the ideal world for a sub, the GC would just cut him a cheque right of the bat. But how is that fair to the GC, using his line of credit and paying interest out of his pocket? If he doesn't get paid instantly (often 30-60 days) why should you? I've had trades get upset if they find out I marked up their work. So how is a GC supposed to pay you early if he isn't making a markup on your work? And even if he does, then why should that cut into his profit?

Most trades I have worked with have an understanding that working with a GC makes their job easier than dealing with an owner. They may be paid slower than they like, but at least they do get paid, and they don't have to pay a lawyer to collect if the owner refuses to pay. 

So a question to you, how late is late here? Are we talking 2 weeks after job is complete or 2 months?


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## huggytree (Nov 3, 2013)

generalnobody said:


> In the ideal world for a sub, the GC would just cut him a cheque right of the bat. But how is that fair to the GC, using his line of credit and paying interest out of his pocket? If he doesn't get paid instantly (often 30-60 days) why should you? I've had trades get upset if they find out I marked up their work. So how is a GC supposed to pay you early if he isn't making a markup on your work? And even if he does, then why should that cut into his profit?
> 
> Most trades I have worked with have an understanding that working with a GC makes their job easier than dealing with an owner. They may be paid slower than they like, but at least they do get paid, and they don't have to pay a lawyer to collect if the owner refuses to pay.
> 
> So a question to you, how late is late here? Are we talking 2 weeks after job is complete or 2 months?



in my world as a sub i HAVE TO pay for my materials/fixtures out of MY POCKET and then wait 30 days to get MY MONEY from the GC.....why is the problem only the GC's???? if i don't pay my suppliers on time i lose my suppliers....but GC's can pay whenever they feel like or when they collect from the homeowner

here's a tip! GC's.....have some $$ in your bank account or get a line of credit....its how its supposed to work.....its how i work with my suppliers ....

i keep tens of thousands sitting around to pay my monthly supplier bill....i swear many(not all) Gc's must have $10 in their bank accounts

another issue is GC's collecting from homeowners....some don't seem to be in any hurry.....and they refuse to pay the subs until they get paid...well if your going to do that, then why not get paid from the homeowner quickly instead of waiting 30 days to invoice them....i invoice every night for work done that day.

im luuuuucky.....all my GC's pay me quickly....im spoiled....very few take as long as 30 days........a new house i just finished paid me in 10 days.


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## huggytree (Nov 3, 2013)

in WI you can check the WI court system.....ive used it many times to check up on people...CCAP.com

15 days overdue payments get a prelien filed with a lien company 
30 days over due = i call the homeowner
45 days over due = i file the intent to lien

i don't put up with late payments....never lost 1 cent....yet

only had to file intent to lien 2x

never went to lien


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## generalnobody (Mar 12, 2014)

huggytree said:


> in my world as a sub i HAVE TO pay for my materials/fixtures out of MY POCKET and then wait 30 days to get MY MONEY from the GC.....why is the problem only the GC's???? if i don't pay my suppliers on time i lose my suppliers....but GC's can pay whenever they feel like or when they collect from the homeowner
> 
> here's a tip! GC's.....have some $$ in your bank account or get a line of credit....its how its supposed to work.....its how i work with my suppliers ....
> 
> ...


It sounds like you run your business professionally and have your act together and I congratulate you on that. Many trades do not, and that is part of the problem. 

You hit the nail on the head when you said you invoice every night for work done that day. 

I received an invoice from one of my plumbing companies in December, get this, for work done in July. This was for final extras on a new house build. Of course they act like its already waaaay past due. They even went as far as back dating the invoice. Well that didn't work because I referred back to the Dec. 1 statement and it wasn't on there, but Jan. 1 it is, with an August date. So now in December I get to send my client a bill for work done in July that they figure was covered by their final draw... You can imagine how that went over.

It gets better. Another plumber I dealt with never did invoice me for work on a commercial job 3 years ago. I kept asking him for an invoice, because I had prepaid him 50% for some rooftop units and had only received part of that from the owner, and I had done a lot of the prep work with my crew for the in ground plumbing he did. I never did get an invoice, and consequently could never invoice my client as the client needed the invoice and paperwork for warranty. In the meantime, the owner had all sorts of issues with the rooftop units, and no warranty paperwork. Paid out of pocket for a dozen service calls, so now figures its even steven and won't pay anything toward the initial cost. Except, who pays me for my pre payment and time invested and crane rental etc.? 

So it works both ways in this business. If you get a GC invoices quickly, then he can get payment quicker from the owner. Its a cycle and the sooner it gets started, the better.

You reference 30 days as being a long time, but in the business world 30 days is on the bottom end. Again, it all goes back to your expectations. If you start a job for someone without discussing payment details ahead of time, then that does leave it wide open to what is expected. 

And assuming that GC's don't have lines of credit or money on hand is a misconception for most. Your bill is only one of dozens that he will get each month, don't assume that he doesn't have things set up to pre pay bills. I don't know what kinds of $ you put into your jobs each month, but you can count on the GC's you work for having 10-20X the bills so a hefty bankroll only goes so far sometimes. 

If you have the money sitting in the bank, why are you concerned about waiting up to 30 days in the first place?


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## tjbnwi (Feb 24, 2009)

I agree with huggy on this one. My response is coming from both sides of the isle. If you want to be a GC you need to have the funds to pay your bills. The burden should not be on the sub to carry the GC. They have their bills to pay also. You as the GC entered into a contract with the property owner. You negotiated the terms, it is not the subs problem you entered into a one sided contract. 

As a sub I'm currently doing a 150k job, the GC's terms are 30 days from invoice submittal. I do not submit for material not in the shop or on site nor work not completed. All of my suppliers have been paid as have all the subs. Their payments are sent within 24 hours of me receiving their invoice, if they hand deliver their invoice I hand them a check. 

The next phase of this job is over 600k, I'll have over 300k out before I receive my first payment. 

I'm currently carrying 4 GC's for a little over 90k. 

One of the biggest problems with this trade, most do not know how to run a business. If you generated a bill, you best be able to pay it. As a sub, my contract is with the GC, you can be sure if there is a non payment I'm going hard at the GC. I could careless if they did not get paid.

Tom


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## tjbnwi (Feb 24, 2009)

generalnobody said:


> If you have the money sitting in the bank, why are you concerned about waiting up to 30 days in the first place?


Because it is MY money. They owe me. Every time I take money from one of my accounts it costs me money. 

Tom


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## East River (Mar 21, 2014)

Some GC's do their best to get away with it and I think its unfair. I include in my contracts that I will pay my sub within 30 days of getting paid by my client and I submit monthly pay reqs.


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## ESSaustin (Mar 27, 2010)

I def check on all new clients/GCs we work for. It has saved me more than once. I had a GC hire us last year, and after digging up some dirt on him realized he co-owned another waste company in town and was just trying to test us out to see why he has lost accounts to us. I charged him way more than I would anyone else. He tryed to stiff me on the final payment, but I got most of it, and still made more than I normally charge.


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## rselectric1 (Sep 20, 2009)

I take a different approach as a GC. I schedule progress payments in a fashion that I can make material deposits to every sub as needed, and I almost always pay finals several days in advance of when they are finished.

(Of course only for the ones I know and am confident would never screw me)

My policy is that if it's not my money in my account, I want to get rid of it ASAP.

The result is an entire roster of subs that trust me, and will do anything for me as a GC.

I don't understand the guys who are taking final payments from one job to try to catch up on payments from several new jobs. It's a bad way to do business. But sometimes I am the electrical sub with those guys, and it's a bit un-nerving.


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## Jaws (Dec 20, 2010)

huggytree said:


> in my world as a sub i HAVE TO pay for my materials/fixtures out of MY POCKET and then wait 30 days to get MY MONEY from the GC.....why is the problem only the GC's???? if i don't pay my suppliers on time i lose my suppliers....but GC's can pay whenever they feel like or when they collect from the homeowner
> 
> here's a tip! GC's.....have some $$ in your bank account or get a line of credit....its how its supposed to work.....its how i work with my suppliers ....
> 
> ...


You bill me Wedensday you get paid Friday. You bill me Thursday, you get paid next Friday. Unless you are a favorite of mine. 

3k or 100k. Dont believe me, ill provide references. Never paid A DAY LATE. Ever. 

Any GC should be able to do the same.


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## tjbnwi (Feb 24, 2009)

East River said:


> Some GC's do their best to get away with it and I think its unfair. I include in my contracts that I will pay my sub within 30 days of getting paid by my client and I submit monthly pay reqs.


This is a perfect example of the problem. Why not pay them the day you get paid? The sub is not your bank. What if you don't get paid? Should the sub be out their money? They have no contract with the property owner, it is with you. You should have the ability to pay your subs. 

Do you get a deposit for the job? Do you issue deposits to your subs?

I do not do pay when paid contracts. I would not work for you. 

Tom


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## BamBamm5144 (Jul 12, 2008)

Now that I'm looking for it I've seen that box truck driving around. I wonder who you're working for that you're having these issues.

A lot of the big guys make you wait for at least 30 days. If it's spelt out beforehand, what's the big deal?


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## Jaws (Dec 20, 2010)

GC is the most over used term in the book. 98% are posers.


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## rselectric1 (Sep 20, 2009)

Jaws said:


> GC is the most over used term in the book. 98% are posers.


Yep, same here in Illinois. A handyman can call himself a GC here and be legitimate since there is no licensing for GC's here.

I only started calling myself a GC about 10 years ago when I actually became one since I felt I had earned the title according to the true definition. I made sure before I called myself one and had a bunch of completed full projects under my belt first as a true GC.

Heck, even a HO can call himself a GC here and be legally correct.


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## jamestrd (Oct 26, 2008)

I'm leery of any new cold call GC.

my only thought is this,

who did you not pay and screw and how many beforehand?

if you are established you are loyal to subs.

there may be rare occurrences.

Maybe your sub got greedy and started over pricing ridiculously.

May be they left 1 too many chicken bones on site and HO's complained.

Maybe the work became deficient.

eliminate those 3 deficiencies and you got a dead beat


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## Tower (Nov 3, 2011)

How can you consider yourself a GC if you don't have the funds to pay your trades? 

When I get paid by the client should be irrelevant to any sub, they are working for me and expect to be paid upon completion. 

If for any reason there would be any delay in payment or wait on a draw, it should be layed out and agreed upon before any work starts.


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## East River (Mar 21, 2014)

tjbnwi said:


> This is a perfect example of the problem. Why not pay them the day you get paid? The sub is not your bank. What if you don't get paid? Should the sub be out their money? They have no contract with the property owner, it is with ve the ability to pay your subs.
> 
> Do you get a deposit for the job? Do you issue deposits to your subs?
> 
> ...


Its not the perfect example. My subs know when they'll be paid before entering contract unlike what the OP is stating. I won't take offence to your comment and to answer your question, yes I do drop 30-50 percent at signing.


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## Jaws (Dec 20, 2010)

Tower said:


> How can you consider yourself a GC if you don't have the funds to pay your trades?
> 
> When I get paid by the client should be irrelevant to any sub, they are working for me and expect to be paid upon completion.
> 
> If for any reason there would be any delay in payment or wait on a draw, it should be layed out and agreed upon before any work starts.


:thumbsup:

I have done net 45 as a GC and not been paid for over 100 days, the amount equaling more than a year of my salary. Everyone I owed was paid. If I enter into a contract with a sub, its between he and I. The buck stops with me. If I didnt have the cash, Id take out a line of credit before the project.

3rd generation GC carrying on that process. It starts and stops on me. No excuses or failure. You can bet if one of my kids takes this SOB over they will do the same with the same scars and calluses I have or they wont operate under my name.


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## jhark123 (Aug 26, 2008)

Around here the industry standard is Subs bill and complete by the 25th to be paid on the 10th of the following month (bigger builders and commercial gen contractors command Net 30 or even 60)

I follow this as all established subs and suppliers are used to it.

Prevailing wage is pay when paid.


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## blacktop (Oct 28, 2012)

Jaws said:


> You bill me Wedensday you get paid Friday. You bill me Thursday, you get paid next Friday. .


That's more than a fair shake!:thumbsup: Most of my builders pay In the same manner. And I'm always done by Wednesday !:laughing:


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## tjbnwi (Feb 24, 2009)

East River said:


> Its not the perfect example. My subs know when they'll be paid before entering contract unlike what the OP is stating. I won't take offence to your comment and to answer your question, yes I do drop 30-50 percent at signing.


Why do they have to wait 30 days after you receive your payment? I've asked this question of many, have yet to get an answer that made sense. That includes the GC on the current job, he's a CPA, his response was it's normal. I knew going into my current job 30 would be the payment schedule. A choice I made, now if they really did stick to the 30. I have a feeling I'll be done before the first check arrives. 

That being the case, you should see what your savings would be paying your subs and suppliers early. I was able to save over 4k on one group the items I needed for my job because I was able to pay for the items upon order. 

No offense was meant, I just don't get why it takes 30 days to put some ink on paper. You received the funds, why take 30 days to distribute it? That puts your subs/suppliers on a 60 day cycle (30 for you to receive, 30 to payout). I know it takes me about 15 seconds to write a check. GC's expect faster production out of a more complicated process of your subs and suppliers. Maybe I'm just an idiot and can't figure out the process.

Tom


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## iDAHOchris (Feb 11, 2012)

The GC runs his biz on your money.


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## Jaws (Dec 20, 2010)

Jaws said:


> You bill me Wedensday you get paid Friday. You bill me Thursday, you get paid next Friday. Unless you are a favorite of mine.
> 
> 3k or 100k. Dont believe me, ill provide references. Never paid A DAY LATE. Ever.
> 
> Any GC should be able to do the same.


I said this wrong. I was tired, cranky and cross eyed from scheduling. I didnt write it the way it sounded in my head. :laughing:

I meant to say, every GC should have a set time of the month or week or whatever , PREDETERMINED and DISCLOSED to the sub before the agreements are made. What Jark just said is fine to me, its the date that the bills will be paid. For me thats Friday, but that is my way. 

Also that a GC should have some capital, and note run his company on his subs backs. If the client doesnt pay, you still have to pay. The sub works for you. 

If I sounded preachy, I was, although perhaps this wasnt the place. I am tired of people thinking my profession is full of scum bags, and Im tired of finding out they are right more than they should be. I was a little more pissed than usual yesterday. One of my better subs didnt get paid 11k from a chit bag GC in San Antone. I cant even help him file a lein probably because he didnt have a contract, or even a saved email. :no: Hope that GC gets his, and I hope its bad. I wouldn't piss on him if he was on fire. I can guarantee that hurt the sub financially worse than he will let on.


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## huggytree (Nov 3, 2013)

iDAHOchris said:


> The GC runs his biz on your money.


Most do....not all

the organized /honest ones don't....the average ones do

if I was a GC id have $100,000 sitting around in my bank account or a $100,000 line of credit......I know most have $10

I have $66k sitting in my business checking right now......im a 1 man plumbing shop.....my supplier invoices are around $20k a month

I just think most GC's aren't good with their money or mentally cant let $100,000 sit around to use to pay bills with.



ive had several GC's tell me I don't get paid until they get paid...my response is my contract is with YOU not the homeowner.....if they don't pay you, you still owe me!......

to the guy who says it takes 100 days to get paid by the customer....why? I wouldn't work for anyone who cant pay me within 14 days.....I understand the bank may be involved and that's the only reason I give them 14 days leeway 

ive had GC's in the past where im doing the finish and they admit they haven't billed for the rough yet.......that's a good example of a EX customer.....they cant manage their billing and I am expected to go 60-90 days because they don't know how to bill their customers


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## cwatbay (Mar 16, 2010)

We sub for virtually every job. Maybe 5% is on our own, the rest is subbing. Unlike most posters here, our jobs are 95% commercial and government (local and county). 5% or less is residential, and, most of that is through another contractor. 

My contracts are with the GC, so it's up to the GC to pay according to the terms of our contract. Our standard contract is NET 30 payment. Most of our GC's pay within 10 days or less. 

If a new GC pays late or I have to bug them to pay according to the terms of the contract, then they lose their NET 30 option and it's Payable upon receipt, AND, we bill them based on Union Electrician Rates - between $100 and $140 per hour, instead of our must lower wholesale rates. 

I work with other contractor like ourselves and we have agreements in place where we have negotiated rates that we charge each other when we help each other out. This saves me time and trouble managing employees (at least for the time being, this is will be changing soon).

We have three contractors that send us steady work. We have one new one that we are trying out and they have already found out what happens when they pay late ( late according to their own terms ). So this GC may not be on our books for long. 

Spell it all out in your contract with the GC, rates, penalties, fees, consequences, etc. That cuts down on a lot of problems.


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## huggytree (Nov 3, 2013)

Jaws said:


> If I sounded preachy, I was, although perhaps this wasnt the place. I am tired of people thinking my profession is full of scum bags, and Im tired of finding out they are right more than they should be. .


you may not be a scum bag, but sorry to say 50%+ of your profession is.

I believe 50+ of GC's are dishonest/con men in some way...some 100%, some 25%......only around 25% from what ive seen are truly ethical and honest 100%.....with the trades I find 75% are honest/hard working...most are overly trusting though......

most of the larger GC's are good...its the small guys who are a nightmare.....and of course they keep calling me this year...one after another.......everyone with a job that is ready now(because their current plumber said Good Bye)


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## jhark123 (Aug 26, 2008)

Jaws said:


> I said this wrong. I was tired, cranky and cross eyed from scheduling. I didnt write it the way it sounded in my head. :laughing:
> 
> I meant to say, every GC should have a set time of the month or week or whatever , PREDETERMINED and DISCLOSED to the sub before the agreements are made. What Jark just said is fine to me, its the date that the bills will be paid. For me thats Friday, but that is my way.
> 
> ...


Me too. But subs have to realize it goes both ways. Every sub has been burned by a gc and every gc has been burned by a sub. Every sub that I get that wants to be paid immediately has turned out to be a problem child (not honoring warranty, unpaid wc, unpaid taxes, unpaid employees, bad work that I discover after payment, refusing to send insurance certs/not having insurance, drinking on the job, etc. I have seen it all)

How wide spread is the 25th/10th standard, it's very rare that I get an established sub that isn't used to following this.


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## Jaws (Dec 20, 2010)

nothing wrong with a 25 / 10 rule to me. I have been told a number of times my system is old school, and it is. But it works for us.


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## iDAHOchris (Feb 11, 2012)

It is common in my area. Most GCs have this in place ( commercial) residential depends on bank


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## Jaws (Dec 20, 2010)

Op, yes I would check out a GC. That is crazy not to, especially with all the resources available to do so.


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## MTN REMODEL LLC (Sep 3, 2010)

Tower said:


> How can you consider yourself a GC if you don't have the funds to pay your trades?
> 
> When I get paid by the client should be irrelevant to any sub, they are working for me and expect to be paid upon completion.
> 
> If for any reason there would be any delay in payment or wait on a draw, it should be layed out and agreed upon before any work starts.



YES ^^^^^^^^^

Huggy is darned right.... don't work for them and tell them why.



Financing (liquidity) is the GC's job...... A sub should be paid completely on completion..... unless their are some special circumstances that are fully agreed upon at "contract time"

I understand there are some "hand to mouth" GC's as there are "hand to mouth" subs.... and if you are confident on final payment, maybe upcharge the job for your financing. (all agreed in advance and keep within lien period.)

A slow pay GC is no different than a slow pay customer.

Or maybe make the GC pay dailey progress payments.... see how he likes that!

Good for you Huggy.


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## brunothedog (Sep 8, 2013)

generalnobody said:


> In the ideal world for a sub, the GC would just cut him a cheque right of the bat.* But how is that fair to the GC, using his line of credit and paying interest out of his pocket?* If he doesn't get paid instantly (often 30-60 days) why should you? I've had trades get upset if they find out I marked up their work. So how is a GC supposed to pay you early if he isn't making a markup on your work? And even if he does, then why should that cut into his profit?
> 
> Most trades I have worked with have an understanding that working with a GC makes their job easier than dealing with an owner. They may be paid slower than they like, but at least they do get paid, and they don't have to pay a lawyer to collect if the owner refuses to pay.
> 
> So a question to you, how late is late here? Are we talking 2 weeks after job is complete or 2 months?





this got me pissed reading this

that has got to be the dumbest thing I've read in a long time.
YOU get the job, ask me as a sub a price to do said job, mark up my cost by 30-40%, and then want me to wait till you get paid?

sounds to me like another GC that wants me to be his bank until he see's fit to pay.


"Its those who think they know the construction business that ruin it for those who actually KNOW the construction business"


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## Jaws (Dec 20, 2010)

Mountain, are you was saying the GC should write a check the day they finish? 

I have two subs that I write a check for in my truck as soon as they finish, the drywaller who is literally one step ahead of the ballif with all the time, lol. and a one man show trim carpenter that I sub my trim too when I sub it, which is rare. I partnered with him on at least 80 production houses (side gig for me, full time for him), he demands to be paid the day he finishes and he gets it. Thats something agreed upon before we go into an agreement. He only does 2 jobs a year for me usually, I dont sub much carpenter work.


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## MTN REMODEL LLC (Sep 3, 2010)

Jaws said:


> Mountain, are you was saying the GC should write a check the day they finish?
> 
> I have two subs that I write a check for in my truck as soon as they finish, the drywaller who is literally one step ahead of the ballif with all the time, lol. and a one man show trim carpenter that I sub my trim too when I sub it, which is rare. I partnered with him on at least 80 production houses (side gig for me, full time for him), he demands to be paid the day he finishes and he gets it. Thats something agreed upon before we go into an agreement. He only does 2 jobs a year for me usually, I dont sub much carpenter work.


Jaws.... Yes...I think so and I do.

Some procedurally just bill me... that's ok with me if it's their procedure/choice.

If there is a job issue, I might hold some fair retainage.

I just think it's our reponsibility as a GC.... 

OH, I'm not dumb/altruistic with regard to profit, I tell (or most know now) a new sub that I pay promptly, and even in cash if they want (with the proper paperwork/receipts for tax purposes) and if that affects them giving me a good bid,better availability, more conscientious work, or a better working relationship.... great.

EDIT: Sorta on the other end of the contract, I can't remember for ages anyone sub ever asking me for a deposit or progress payment...... except maybe a special/custom order on windows or something.... but I usually take that bill directly and put it on my 1.5% rebate credit card.

Best


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## Jaws (Dec 20, 2010)

We dont operate that way, but it is a good system if it works for you. I dont actually hand over checks usually either. They turn in invoices and receipts to the office manager (my mom) and she goes off of our progress payments I turn in to the office before the sub starts. You must have rich subs or small projects to have no progress payments. If a framer is there for a month, then he is going to want 2 draws probably. The subs pick up the check at the office on Friday.


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## MTN REMODEL LLC (Sep 3, 2010)

Jaws said:


> We dont operate that way, but it is a good system if it works for you. I dont actually hand over checks usually either. They turn in invoices and receipts to the office manager (my mom) and she goes off of our progress payments I turn in to the office before the sub starts. You must have rich subs or small projects to have no progress payments. If a framer is there for a month, then he is going to want 2 draws probably. The subs pick up the check at the office on Friday.


I would call that prompt/responsible/ agreed upon payment system.

OH.... I'm with you on that...... I'm semi-retired and just doing remodel or flip work..... I would have no problem with progress payments in a new build or any extended sub work of beyond 2-3 weeks....

But I really do not base it off any progress payments/cash flow from an HO. 

If interest rates ever returned to 15% as in the late 80's, I might rethink that.... but I still think that payments should be made very promptly and not a daisy chain of when someone pays me to pay paul.

But I understand in your new build senario, you likely need centralized (your office) control of the finances and can't be just writting checks all over he11s half acre.

I seldom have more than one job at a time, and work out of one simple checkbook. 

Best


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