Billing Commercial Work

Rrisky

Im not sure how to bill out for commercial work , I'm not there yet , need to find out before I have to, Its going to be a strip mall my part is the steel stud framing and sheating, my part is 100G , and Im not sure how to start to bill do I ask for a 1/3 up front, from the started, and then another 1/3 and so on and so forth.
Thanks for any help

Bill

Thats something to discuss with the GC. When I am going to do a large job that is going to take weeks to do I figure the total contract price, subtract 15%, then divide the rest by how many weeks it will take. This way you have money for your help, and the GC has some of your money to ensure you finish. This works well for me, BUT you have to make sure you are either on or ahead of schedual. If there is any extras not covered in the contract then keep track of the time involved so you can show why you are behind ( say 6 walls have now been relocated and it takes 6 men 8 hours for the change)

__________________
Is it beer thirty yet
Virginia Department of Licensing
Virginia Plumbing Codes

Bob Kovacs

In most commercial work, you're going to have to invoice monthly for work you completed that month, and the GC will invoice the client monthly. Depending on the client, the GC may get paid 2 days or 2 months after he invoices, and you'll get paid some time thereafter. I wouldn't count on getting a dime up front, so if you don't have the money to float suppliers and payroll for at least two months, you'd better bail on the job, or talk to the GC now about payment terms.

zerolando

If I misunderstood, ignore my post.
But I certainly think you're not doing anything unusual asking for an advance payment. This happens a lot and it has to do with the S curve in construction projects and the effect of negative cash flow on subcontractors, which can be really bad news depending on project size and cost.
Don't worry about asking for an advance payment. as to how much you should ask for , as I've already said. It depends.
And yes what Bob Kovacs talked about is standard practice and I can imagine thats how things are gonna go for you, thats why you shouldn't worry about asking for an advance payment
good day

John R

Commercial work is normally done on what is called a requestion basis. You submit a monthly bill based on a schedule of values,the GC reviews it and you get paid 15 to 45 days after the end of the billing cycle.Example:You submit a bill for $20,000 on May 20 for work done from May 1st to May 30th(I know,you have to estimate the last 10 days).You will normally be paid any where from June 15th to July 30th.

RPortinga

Unfortunately there are a lot of hoops to jump through when it comes to getting paid on projects like this.

We get the sub request in, we put ours together, then submit to the Architect. They take their time in reviewing the site to confirm that the work being billed for is done... then let the owner know it's ok to pay... then they finally issue the check and the money starts flowing down hill again.

The worst is for the guys doing work at the beginning of a billing cycle - I have a project the roofer is going to work the weekend of the 30-31st so he can finish on the May billing rather than start the work Monday the 1st of June.

__________________
Rob Portinga - Bauer Bros. Construction, Inc.
Design/Build - General Contractor - Construction Management

christianH

I have a large wood framed dormitory to bid. Any one have an idea of a good starting sq/ft price, on a 150,000 sq/ft building. I am a residential and multi unit residential framer adn i know i can't use my normal sq/ft price. I also know on a building of this size the sq/ft price goes way down. Any advice will help. thanks