Question For GC'S About The Sub Bidding Process

Jayrek

I dont bid anymore, but I always talk to others and get business cards of the guys with their heads screwed on straight.

Want to know how to get the best price outright from your subs??

Make sure that they get paid as soon as the work is done. Not a moment later. Do this and you will get a great price and great service.

buildiq

That's a nice sentiment, but the fact of the matter is that a GC is not a bank. Subs should get paid when the GC gets paid. Typically that is 30-45 days after the end of the billing cycle, eg. the last day of the month - even if the sub completed the works in the first week of the month. As long as subcontractors are aware of these payment terms, I've never found it to be a problem. I don't agree with GC's stretching out payment past the agreed timeframe though - if I was a sub I would be worried about the GC's solvency. I would definitely be speaking to him about whether the client was paying.

Another way that new subs can get a foot in the door is to offer initiative, usually in the form of a genuine cost-saving (not just a reduction in profit). For example, if you're a caulking guy and the spec calls for Sika, which costs you $10/tube, but you can use another product which is just as good for $7/tube, note the cost-saving below the line for the GC and incorporate it in your final bid price, making sure that the cost-saving is clearly qualified. The GC will appreciate it because he can offer the cost-saving to the client, even if the client doesn't choose to take it.

Also, don't ever be afraid to call the GC back a week or so after the bid to see how both of you have gone. If the GC won the job, ask if you're in the running for your package. If he says yes, nice work. If he says no, ask him politely what the winning bid for your package was - he should not mind telling you at all, so you can work harder on your price for next time. Remember, GCs are nothing without their subs - we do actually try to keep them happy!

Jayrek

I agree that gc's are not banks. But I have my own accounts at the supply houses for my biz, I buy my own mat, and have 60 days net on all accounts. The subs labor I try to pay off right after all contracted work has been completed. If there is a payment schedule I tell them ahead of time, they never complain. Most of my jobs have a day here or a day or two there for most subs. I pay right after the work is done, this keeps the project moving along and keeps my dispursments coming.Look, I am not trying to say that my method will work on large commercial projects, It wont. Period. But on remodels, and smaller to medium resi projects the fact that my subs know that they will be getting paid they answer the phone and show up.

JamesKB2

Jayrek, I agree with you. I have been both a sub and a GC, and I can tell you that when I subbed, there was an A list, a B list, and those I did if I had nothing to do.

The A list guys I would work for treated me professionally, valued my opinion and weighed it, and paid either at jobs completion, or in 7 days. B list guys treated me like hired help, didn't care what I thought, and paid in 30 days. The others? I'd make sure I had no work coming up and then look for my own jobs before I did theirs. Delays in material, paid when they "get my draw" while they vacationed in Vegas. I'd have to pad my bid just to carry their sorry ass 'cause all they cared about was the money.

As a GC, I respect my subs opinions, weight them, and pay as soon as I can. That would be after job completion, or 7 days, OR, I will let them know WHEN BIDDING the draw schedule so they were "in on it" from the get go.

It's not hard, it's giving and getting respect and working as a team. This is NOT "slave / master", if you think it is, you might make money, but you won't get quality, performace, or that quick fix help from a sub when something goes wrong, as it inevitably does.

In my opinion of course. I'm not in this to set the world on fire, be another Donald Trump though. Some people want that.... I do have a rather minimal, (read none) budget for advertising. My work comes to me because I treat everyone as fair as possible. I always seek a win / win solution.

Bottom line, act towards your subs like the pros they are. Pay them as soon as you possibly can, and value them if they're good. REAL good subs are hard to find. Give and get a pro working relationship with them and act as team captian and you will find things run a lot smoother.

Of course, if they're cocky, drunk, show up late and don't do as required, kick them in the butt and find someone else.

kkneib

i own a small new construction cleaning service. always looking for new leads. one question i have for the GC's. Do you pay for leads. i have many companies soliciting me to subscribe to their program. offering me more leads than i can handle. how do you guys get your leads?

mencheman

KC

I recently bid a job and was 150,000.00 cheaper .

The client felt more comfortable with another contractor because he worked in the building already.
My point is that its not always about money. Its often about the relationship of the sub, his reliability , his work ethic and the quality and speed of his work .
Until I bid on this job I never realized the significance of the comfort factor.

Just hang in there .
good luck

mencheman

Kc , sorry i am new here , i posted my reply under commercial Kc brick layer

Abram Germano

Keep bidding projects to multiple GC's and keep your profit in there (never take it out)...you want to be around when the one job you bid is the right number and the GC is pissed off at a sub and gives you a shot. Then perform it well and you have a new relationship. Aslo look into estimating software that will enable you to bid more work!