Bidding With No Money...how?

PMbrian

In the contract with your customer you can list a mobilization billing due immediately. Explain to the customer that this initial billing will be issued and that you will provide them with a conditional lien release for that portion of the contract. Try to get 10% of your overall contract if you can. If they are confident in you and have awarded you the project they should be in agreement with this billing and terms. The other payments will be business as usual, net 30 or whatever your terms are with conditional waivers.

gibson

I am in CA and that is exactly how it is. I am looking to do residential or commercial whichever way I can get work and get paid. Thank you all for your responses, CA is very strict about money.

dprimc

At least you picked a good time and a great location to jump in....what with CA's booming construction industry and rapidly expanding economy!!!

On a serious note, I get a deposit to cover all materials before starting, and draws along the way so I am never in a project with my own money. If I get stiffed, I only want to be out my labor expenses, and I will still be able to pay all subs and material bills. Staying in good standing with suppliers and subs is vital to staying in business. Losing pay on some labor is easier to deal with than havign to come up with 5-10k of your own money to pay the lumber yard, etc.

I would think the CA restriction is for deposit at contract signing, but then they do so much other idiotic stuff there it wouldn't surprise me if they are trying to help the construction industry by only allowing $1000 up front.

jcalvin

It may be a touchy subject for some on here but I started as a paper contractor or maybe even a contruction manager. I was like you, the ability but not enough funds to float emp. between draws. I did a job for simply % over ALL costs. Plus I had an hourly rate for the small stuff I done myself that wasn't worth contracting with someone else. Earned enough on that one job to go to the next with caution.

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Cal


You hired WHO

Chris G

Are you allowed to have the customer pay directly to your supplier for initial materials? Doesn't have to be the whole she-bang so you can still keep the books confidential, but should get you to the next draw no? Then when you flake out and don't show up because of your heroin addiction, the customer can just return the lumber or whatever (hopefully not custom cabinets though), and everyone is happy.

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