Bidding With No Money...how?

gibson

I am a licensed gc and started my own business this year. I have had no breaks come my way. Few small jobs here and there but nothing to keep me above ground. I signed up for bidclerk recently and have found a few big jobs on there that I feel confident I could do which is a plus. I just have the issue of no money. I have do not have money to buy supplies or pay employees till I get paid. Is there any way to bid on these big jobs without having money to start with? Is my best option to try to sub all the work out, I have not been in business long enough to get any kind of loan. Please any suggestions or help would be much appreciated.

kevjob

1. Why would you finance the clients job?

2. Get deposit at start for all materials, then a draw when you start.

I would never finance a clients job even if I won the lottery, only exeception is a repaet client whom I worked with before and even then its still iffy.

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Kevin
Basement Finishing Highlands Ranch Colorado
Littleton Colorado, Basement Remodeling
Kitchen Remodeling Denver

Framer53

You need a bank or SBA loan!

Failing that, an Angel might help. That is what they call people that help fund new businesses.

Framer53

Kev, I have a fealing he is from California that limits your deposit money

kevjob

they dont limit the amount of draws do they?

material draw 10%

Permits submittal 20%

Start of project 10%

etc... Not sure of Californias laws but would that work?

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Kevin
Basement Finishing Highlands Ranch Colorado
Littleton Colorado, Basement Remodeling
Kitchen Remodeling Denver

Heritage

I could have a Million dollars sitting in my business chequing account and I wouldn't finance a client's job either.

You have a duty in the contract to provide a number of services and deliver a number of goods.

The client has only 2:
-Fund the project
-Keep the driveway clear and access to the home available at certain hours.

You shouldn't have a problem, just make sure you have:
-A good critical path
-A good contract
-An intelligent payment plan

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Toronto General Contractor-Renovation Blog-Contractor on Facebook-Renovation on twitter-Contractor Youtube

BKFranks

In CA you can only ask for 10% down or $1000, which ever is less, otherwise you face citations and administrative charges. You can certainly have a draw schedule just like you said for permits, materials, or even weekly draws.

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kevjob

Wow 1000.00? how do you order 17k in cabinets for the project?

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Kevin
Basement Finishing Highlands Ranch Colorado
Littleton Colorado, Basement Remodeling
Kitchen Remodeling Denver

Leo G

As far as I know. The 10% or $1000 down is just at the contract signing or to get you in the work cue. Before you start you can collect whatever is require to run the project.

If not. Move. That would be rediculous for you to have to front that kind of money for a client to have their dreams come true. And then screw you over.

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Sawdust Follows Me Everywhere

http://lrgwood.com
Custom Cabinets in Hartford County Connecticut

jmacd

Are you asking about commercial or residential projects? Very different answers for both. You are looking at BidClerk so I assume you are asking about commercial and that will need working capital, bonds, subs, etc.

You never get any money upfront on commercial, payment's are made on progress.

kevjob

When i have them sign thats when I get all materials money up front, order everything when it is delivered start.

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Kevin
Basement Finishing Highlands Ranch Colorado
Littleton Colorado, Basement Remodeling
Kitchen Remodeling Denver

Leo G

Yer not in Kalifornia, that's how I do it also.

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Sawdust Follows Me Everywhere

http://lrgwood.com
Custom Cabinets in Hartford County Connecticut

tinner666

When I started with a nail pocket and a truck, I got with a supplier. We drew up a contract that included him, the client and myself. After a few jobs were done, and I had some 'experience' under my belt and a good relationship going, my credit level went up and I didn't need 3 way contracts.

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Frank Slate Roof Repairs, Richmond, Va.

bdoles

I was wondering how you got your license? Here in GA you need some pretty good financial standing (LOC, etc...) or a commercial bank account with your company name on it for a min. of 24 months.

There are many out here in ATL that I wonder how they got their license, when they don't have a pot to piss in and are just starting out.

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Brian
Atlanta Remodeling
Licensed Contractor - Georgia

480sparky

So in order to be in business, you need a license, and in order to get a license, you need to be in business for 2 years, but in order to be in business 2 years, you need a license, but you can't get a license because you haven't been in business for 2 years, and you can't possibly be in business for 2 years without getting a license, but in order to get a license, you need to have been in business for 2 years..........

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rselectric1

Chicken or the egg dilemma.

Sounds kind of like when applying for a loan, you must first prove you don't need one.

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220...221...whatever it takes!

mahlere

resi and commercial play by different rules...you don't have to agree with them, but you do have to live with them if you choose to play in the arena....

Roofman20033

Here in Michigan, i get 50% down on every job! Remaining upon completion. I think a lot of it has to do with how you or the salesman asks the homeowner for it! I don't ask "can you put 50% down?". I tell them it is 50% down, and remaining upon completion, end of story. The more you get up front, the easier it is to get the rest at the end! I knew a salesman that got about 70% of his jobs paid in full, before the job ever started! How did he do it? He told the homeowner as they were writing the check for the downpayment that if they write the check for the whole thing, he would knock off $100.00. Of course he had it built in, but it worked!

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Whitmore Lake roofers,Ann Arbor roofers,Michigan roofers www.callroofpros.com

KennMacMoragh

For the guys that charge up front, what do you do if the customer tells you the bank won't pay him until the work is complete? That was the case for me building my own house, the bank wouldn't pay me to pay any subs until after the work was done and inspected. If I had a sub who demanded some of the money up front, I wouldn't be able to use him.

kevjob

I get just materials at signing, my subs are paid as soon as they pass their rough inspections.

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Kevin
Basement Finishing Highlands Ranch Colorado
Littleton Colorado, Basement Remodeling
Kitchen Remodeling Denver