# Suppliers for large jobs instead of using local suppliers



## KAP (Feb 19, 2011)

cevinklark said:


> I got my first big job. 600k total. Might not be big to some, but around here it's huge.
> 
> Are there any distributors that specialize in selling to gc's on big projects. I feel like I should get a big discount if I buying hundreds of thousands in materials?
> 
> ...


How did you bid the job without knowing your costs in advance?

FYI, the big box stores do have volume purchases available... HD takes bid over $2500 and Lowes $3500... get a bid from them for the whole lot and then go to your local suppliers to see what they can do so you can keep it local...


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## cevinklark (Dec 27, 2011)

overanalyze said:


> Hopefully he has thought of these items as well as the other 200 that will occur, otherwise he's in for a rude awakening on this project....and material prices will be the least of his worries.


I've got it all figured, I've done this before. I just didn't really want to type everything on my estimate on this thread.


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## cevinklark (Dec 27, 2011)

KAP said:


> How did you bid the job without knowing your costs in advance?
> 
> FYI, the big box stores do have volume purchases available... HD takes bid over $2500 and Lowes $3500... get a bid from them for the whole lot and then go to your local suppliers to see what they can do so you can keep it local...


(copied and pasted from earlier.)

Sorta. It's a church and I helped them designed it as a favor. They want me to build it and aren't getting bids from anyone else. I'm trying to get them the best price I can. It means alot to me that they respect and trust me enough to just say build it, and not get other bids.


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## overanalyze (Dec 28, 2010)

cevinklark said:


> I've got it all figured, I've done this before. I just didn't really want to type everything on my estimate on this thread.


Again not judging. We get a lot of low price newbs asking questions like you here. I don't expect you to post your whole quote here, but at a total of 600k, it's not a big project. The last house we did was that...not bragging. You are not in the bulk discount price range. Concentrate on service. Shop, but shop with discretion. Nothing is ever apples to apples.


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## cevinklark (Dec 27, 2011)

overanalyze said:


> Again not judging. We get a lot of low price newbs asking questions like you here. I don't expect you to post your whole quote here, but at a total of 600k, it's not a big project. The last house we did was that...not bragging. You are not in the bulk discount price range. Concentrate on service. Shop, but shop with discretion. Nothing is ever apples to apples.


thanks, I wasn't sure how much is "enough" for bulk discounts. That should have been my first question.

Our average house here is 150k. My parents have a 1816 victorian farm house in good shape, with 8 bedrooms and it only appraised for 500k last year. That's my dream to build a beautiful custom home instead of all these ranchers on slabs.


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## Mud Master (Feb 26, 2007)

ohiohomedoctor said:


> I know a guy around me who recently decided to do commercial work. He sold a large interior fit up at a local mall. Well he is going bankrupt because he was clearly over his head and unaware that the reason he won the bid was because he didnt include money for a whole chit ton of shelving and custom cabinetry. He thought he was just installing owner supplied stuff. Now he has to come up with the goods and have it installed before deadline when the huge late penalties kick in. The guys is absolutely distraught.
> 
> So good luck..


Commercial isn't for everyone, it's a whole different ballgame I'll be the first to admit that....

But really? Box builds, be it raw or vanilla are not that difficult until you get into the Forever 21's and above. Even those are mostly in the more extreme finish details where they really spend their money. The plans for these are rarely overly complicated. Even residential remodels and builds I've completed had a spec on who furnishes/installs what, so its not a cultural difference between the two fields.

How can something like that be overlooked? Residential, commercial, industrial, institutional, civil... The responsibility call out is not only listed blatantly on top of the general conditions, but boxed with easy little dots as to who supplies and installs what. Plus most architect's make notes on every page regarding responsibility and even refer you back to the call out. 

I'm not trying to ramble, I've missed plenty in my time and has cost me more than I'd ever like to calculate, but luckily they've all been small. To miss something so blatant though? I have too believe the owners rep knew something was amiss with his proposal and ran with it.

Sorry, I probably sound awful, but to miss something like that on a box is incredible. 

I do feel sorry for the guy, honest. I can't imagine the feeling, but it sounds a lot less like a residential to commercial issue, and a lot more like a gross misconception of the plans and failure to double check and clarify.

Prayers to him, honest. Hope he can pull through it, and learn from it.


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## griz (Nov 26, 2009)

cevinklark said:


> ...I've got it all figured, I've done this before....


Ok, good luck with that.


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## ohiohomedoctor (Dec 26, 2010)

Mud Master said:


> Commercial isn't for everyone, it's a whole different ballgame I'll be the first to admit that....
> 
> But really? Box builds, be it raw or vanilla are not that difficult until you get into the Forever 21's and above. Even those are mostly in the more extreme finish details where they really spend their money. The plans for these are rarely overly complicated. Even residential remodels and builds I've completed had a spec on who furnishes/installs what, so its not a cultural difference between the two fields.
> 
> ...


Its fishy for sure. I think the gc is just taking advantage of the guy.


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## cevinklark (Dec 27, 2011)

griz said:


> Ok, good luck with that.


didn't mean to come across as arrogant, or know it all. I'm sure I missed some things, but I'm confident I have enough extra figured in to cover it.


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## Mud Master (Feb 26, 2007)

ohiohomedoctor said:


> Its fishy for sure. I think the gc is just taking advantage of the guy.


And then some!

A simple exclusion in his proposal or contract stating "furnishing or installation of anything not owner supplied is excluded" may have raised some eyebrows or at least helped him on the backend.


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## ohiohomedoctor (Dec 26, 2010)

cevinklark said:


> didn't mean to come across as arrogant, or know it all. I'm sure I missed some things, but I'm confident I have enough extra figured in to cover it.


Whatcha building?


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## griz (Nov 26, 2009)

Mud Master said:


> Commercial isn't for everyone, it's a whole different ballgame I'll be the first to admit that....
> 
> But really? Box builds, be it raw or vanilla are not that difficult until you get into the Forever 21's and above. Even those are mostly in the more extreme finish details where they really spend their money. The plans for these are rarely overly complicated. Even residential remodels and builds I've completed had a spec on who furnishes/installs what, so its not a cultural difference between the two fields.
> 
> ...


Very well put.

The owner/rep in commercial does not care what you missed on bidding.

Like Mud Master's first line, commercial isn't for everyone...:thumbsup:


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## cevinklark (Dec 27, 2011)

ohiohomedoctor said:


> Whatcha building?


Putting a church in an old brick building that used to be a metal fab shop and a car dealership before that. They are in the upstairs and they want to move and enlarge the sanctuary down stairs and add an elevator so they can have Sunday school rooms up stairs. It's a diamond shaped building. 8000 sq.ft.


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## Rich D. (Oct 14, 2011)

Just askin. Does ur building supply offer the church pews?

:laughing:

Dont forget those in that bid.


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## cevinklark (Dec 27, 2011)

Rich D. said:


> Just askin. Does ur building supply offer the church pews?
> 
> :laughing:
> 
> Dont forget those in that bid.


They don't have hymn books or bibles at the supplier either.


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## mrghm (Nov 19, 2006)

there a few companys that just do church joinery, that maybe get nomminated by designers so there is no chance of a discount on thta.

as the GC you should not be worried about buying materials it will be about getting subs on baord that do commerical, if you use guys that are not up to speed your programe will blow out and there goes your profit.

you should look at letting trade packages stuff like auto glass entry doors there will be guys set up doing this allday every day they might travel in do the job and go they will be a lot cheaper than a guy thats done it once or twice before.

your door hardware needs to be correcty spec the you can shop the price all over.

to save big bucks on buying look at get light fittings, signage, these are big cost items where savings can be found.

2x4's are not worth chasing $$ its going to be small % of project


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## killerdecks (Apr 18, 2008)

In order to buy from wholesalers there are 5 things to do.
1. incorporate as another name, acme building supply..... or whatever name suits you. Cost $65.00 done by an accountant
2. Get a resellers liscense. Determined by your state, done by an accountant
3. Have the ability to unload semis 1ok forlift, rent one
4. Have the ability to deliver your own materials, buy a used one, letter it up, cost 20k
5. Have store where you can accomodate this: rent one, cost 3-5 k month, depending apon real estate values, etc


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## GCTony (Oct 26, 2012)

Around here, EVERYTHING is competivly bid right down to the door hinges and it's no secret to anyone. That being siad, why are you providing all materials?

With Commercial, each subcontractor is expected to supply all his own material and equipment. Trying to have a sub provide labor and equipment only to save a few bucks is NEVER worth the headace and risk. If you miss 6 toilets, your eat it, if the plumber misses 6 toilets, it's his problem. 

Large discounts come from working with a supplier for years, not one job.


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## concretemasonry (Dec 1, 2006)

We had a large mason contractor that usually bought over $1,000,000 per year. - We made concrete products.

The contractor required that never sell to anyone else on a unit price or monthly discount. We gave them a quotation annually with annual escalations for long term jobs. That way, we did not get information on what they were bidding and just have to provide materials AND service plus a few educational seminars for the "troops" and a few rounds of golf AND participation in industry promotion. Every year we had a short meeting and provided copies of daily invoices for 12 months of sales (one day per month) and they never bothered to look at them and then we flipped a coin to see who paid for the lunch.

They made their money by bidding and performing and did not want anyone to know what they planned on building and what jobs they would not build.

Price was not really a factor because we were a local manufacturer and insisted in having a higher price the our competitors (we had 35-40% of the market) and could not afford to push other suppliers out because they filled a space in the market.

Long term relationships and service are very important. - They make profits for both sides. One great project was a K-Mart where they called for 12 loads of architectural block at noon to be delivered the same day. That gave the entire 6 crews enough block to work through Thanksgiving Day because the weather was great and they could avoid winter heat and enclosures with cold weather coming. We also delivered the day after Thanksgiving (no premium) and when needed to work over the week-end and have the 120,000 sf building ready for setting steel on Monday or Tuesday.

All of our drivers and dispatchers got phone call invitations to go the job on Thanksgiving for turkey and the trimmings on the grills with the mason's families that were working.

It is not all about the dog-eat-dog price since quality and a reliable supplier helps a good contractor to make a profit.

It is a rare priviledge to work with good contractors even if the heirs, estimators and ambitious superintendents go their own way eventually.


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## cevinklark (Dec 27, 2011)

I only use subs for concrete and electric. And specialty equipment like elevators.

We try to do all we can ourselves because It's such slow market right now. That atleast keeps the money in our employees hands.


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