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Millenial Contractors

 
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Old 12-27-2018, 04:18 PM   #1
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Millenial Contractors


Tell me if anybody else here has encountered this:

We have a relationship with a couple of young guys who are running a GC business. One guy is the contractor and the other is a co-founder. The contractor is the CEO, the other guy is the CTO (chief technology officer).

Did some small jobs for them. Contractor guy is ok, the other guy, the CTO, is a righteous pain the ass. He is also in charge of the financial part of things....like us getting paid.

Basically the CTO has it so that you have to go on-line to fill out about a 1/2 dozen forms, several web pages of info, just in order to bill them for whatever job you did for them.

The other things the CTO has come up with are numerous waivers, an agreement to their terms which include: "you don't get paid unless they get paid". They also believe in retainage fees for every little dink thing that you bill them for. If you don't fill out their forms correctly, you don't get paid.

Everything takes 6-7 emails, forms and so forth. Frankly, I cannot wait to dump these guys. Needless to say, they've made it so difficult to do business, that we aren't doing any more projects for them.

Right now, we are just trying to get paid on a $900.00 bill, a $480.00 bill ( which is now 60 days past due) and a $113.00 retainage.
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Old 12-27-2018, 04:30 PM   #2
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Re: Millenial Contractors


I have done work for a management company that everything has to go through there web portal system. Which is not that easy to access from a mobile.
I first just raised my prices for the PITA factor, but now I just refuse to work with there system.
The way the world is turning less and less personal interaction

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Old 12-27-2018, 04:33 PM   #3
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Re: Millenial Contractors


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I have done work for a management company that everything has to go through there web portal system. Which is not that easy to access from a mobile.
I first just raised my prices for the PITA factor, but now I just refuse to work with there system.
The way the world is turning less and less personal interaction
That is right. These guys are using the web portal process, which maybe makes it easier on their end, but certainly not mine. It's a simple process: I send you an invoice/bill, you pay it.
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Old 12-27-2018, 05:06 PM   #4
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Re: Millenial Contractors


Yes, just like so many things in business dealings (and consumer dealings) today. The techy millenials have gone too far into the latest technologies with their apps, software, portals, etc. They don't seem to comprehend that there are a large number of, for example, 40-65 year old people still living, working, and existing, that aren't interested in injecting "all-things-tech" into standard business protocol. There is still going to be a multi-year phase in period, in which younger people replace the older people, and during this period both sides will have to make adjustments. Just my opinion.
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Old 12-27-2018, 06:08 PM   #5
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Re: Millenial Contractors


Agreed. Create systems that are easier on all parties, not just one side. Dozens of forms per job is silly. One agreement at the start of each year to keep the insurance company happy and to set expectations. The W9 and GL proof each year. Then each job just email the GC an invoice and get paid.

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Old 12-28-2018, 05:04 AM   #6
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Re: Millenial Contractors


Moral of the story here is don't sign what you don't agree to.
And don't let their horrible processes get in the way of your right to file a lien on things you have not been paid for.
Your bills are due and payable. You've by now had to pay payroll, materials, taxes, etc.
You should not have to carry their company.
Let them know that what they have in place does not work for you and will not work for others as well. Tell them how long you've been in the industry and give them some examples of what you've seen.
They are naive thinking they can use their toys to make them a success when in fact it very well may result in their demise if they don't face reality.
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Old 12-28-2018, 07:06 AM   #7
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Re: Millenial Contractors


Your bills must have a "Due Date" on them.
Send them a bill for the interest.

I charge 2% (24% year).
Rarely have to charge it. But it drives the point home.
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Old 12-28-2018, 10:19 AM   #8
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Re: Millenial Contractors


We signed up with these guys at a contractor show. Things were slow, so I figured why not, we could use some extra work and especially in commercial electrical jobs.

The fact of the matter is, these guys are the least profitable compared to all our other contractors. We make more in a week from others, than we do with these guys in an entire year.

The feeling I am getting now is that this GC has a hard time finding subs. For obvious reasons. The CTO told me they are having problems getting paid by clients who owe them on several 100K+ jobs. What a shock

I know what I am dealing with , with these guys, and frankly, with what they owe us, I could just write it off. But I'm not. I don't care if they owe us $20, they're going to pay it.

I was curious to see if anyone else has come across similar types of contractors who make it so difficult to get paid, that they just aren't worth it to deal with.

Last edited by cwatbay; 12-28-2018 at 10:29 AM.
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Old 12-28-2018, 10:57 AM   #9
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Re: Millenial Contractors


Just found out on this site actually that I'm a millennial contractor. I get a bill Thursday morning before the office opens you get a check Friday morning. No ifs ands or buts. Never missed one.
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Old 12-28-2018, 11:01 AM   #10
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Re: Millenial Contractors


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Originally Posted by Jaws View Post
Just found out on this site actually that I'm a millennial contractor. I get a bill Thursday morning before the office opens you get a check Friday morning. No ifs ands or buts. Never missed one.
Now THAT is how business is done!
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Old 12-28-2018, 11:02 AM   #11
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Re: Millenial Contractors


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Originally Posted by Jaws View Post
Just found out on this site actually that I'm a millennial contractor. I get a bill Thursday morning before the office opens you get a check Friday morning. No ifs ands or buts. Never missed one.

Sorry, but you can't be a millennial contractor

You don't whine and cry enough. You don't complain that your avocado toast wasn't done just right. Or, that you're entire day is ruined cus someone looked at you crooked, or, that your safe space doesn't have milk, cookies and a puppy.
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Old 12-28-2018, 11:04 AM   #12
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Re: Millenial Contractors


As I've said on here before, have a good friend who is a commercial GC primarily. Straight up paper contractor, does not go to the job sites excetera. Very good money man and is an expert in contract law.

He started building higher in specs and Horseshoe Bay as a side gig since he live there and was bored because he only works like 5 hours a day, LOL, and he asked me for a couple subcontractors.

The guy is a great guy so I sent him some good Subs. Talk to my Mason a couple days later and asks if he is doing work for that guy and he said f*** no.

I said why not? He said because the guy is a f****** loser. Lol. He said that the guy wanted him to do all of the work without a deposit and he paid on the 25th of every month. Once a month. Had to get your draws in when you were supposed to Etc. The Mason told him that wasn't going to work and he told the Mason well I'm not a bank. The Mason said he leaned in and told my buddy and I'm not your f****** bank LOL.

I told the dude there's no way these Subs around here that are any good are going to accept those terms. I also told him no on any more subs he asked for.

Before too long he started coming around and on residential projects he bitches but he pays every Friday. LOL.
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Old 12-28-2018, 11:07 AM   #13
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Re: Millenial Contractors


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Originally Posted by cwatbay View Post
Sorry, but you can't be a millennial contractor

You don't whine and cry enough. You don't complain that your avocado toast wasn't done just right. Or, that you're entire day is ruined cus someone looked at you crooked, or, that your safe space doesn't have milk, cookies and a puppy.

I drink gas station coffee black, drink my Bourbon and Scotch straight with no cut, get up when most people are still rolled up in their jammies with their binky, and say Merry Christmas instead of happy holidays. I think I'm probably a throwback. LOL
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Old 12-28-2018, 11:10 AM   #14
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Re: Millenial Contractors


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Originally Posted by Jaws View Post
I think I'm probably a throwback. LOL
Gotta go to work, but I'm going to work on that "throwback" part.
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Old 12-28-2018, 11:16 AM   #15
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Re: Millenial Contractors


Quote:
Originally Posted by Jaws View Post
As I've said on here before, have a good friend who is a commercial GC primarily. Straight up paper contractor, does not go to the job sites excetera. Very good money man and is an expert in contract law.

He started building higher in specs and Horseshoe Bay as a side gig since he live there and was bored because he only works like 5 hours a day, LOL, and he asked me for a couple subcontractors.

The guy is a great guy so I sent him some good Subs. Talk to my Mason a couple days later and asks if he is doing work for that guy and he said f*** no.

I said why not? He said because the guy is a f****** loser. Lol. He said that the guy wanted him to do all of the work without a deposit and he paid on the 25th of every month. Once a month. Had to get your draws in when you were supposed to Etc. The Mason told him that wasn't going to work and he told the Mason well I'm not a bank. The Mason said he leaned in and told my buddy and I'm not your f****** bank LOL.

I told the dude there's no way these Subs around here that are any good are going to accept those terms. I also told him no on any more subs he asked for.

Before too long he started coming around and on residential projects he bitches but he pays every Friday. LOL.
The same guy and I were discussing the Mason and his exchange and he asked me what my sub agreement says about payments?

I said sub agreements? And held up my right hand and said this is the Masons and my agreement.

He said WTF are you out of your mind? Said you know how much liability you put on yourself by not having a sub agreement?

I told him that guy's dad was my grandad's Mason, he and I have worked on the same job sites our whole lives. We both know the score, and both of us are here for a long time. I'm not worried about it and neither is he.

I think a big part of it is not coming from a big city like he did, business is done a little different out here. I like it this way even if it is changing

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Old 12-28-2018, 11:35 AM   #16
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Re: Millenial Contractors


yep. worked for a guy like this a while back. pay apps submitted once a month, if there was an "issue" with your app, it was pushed back to next month.


Other clauses 1) Pay when paid 2) Retainage.



If you were the sitework guy on a new construction, theyd hold your ten percent until CO. Sometimes these homes were 2-3 years plus...Id hate to be the site guy or shell guy...





Oh yeah, and the backcharges... you may not ever see that ten percent..

On those multi year projects, I figure half the subs forgot about their retainage, and it wouldnt be sent unless requested through a ton of legwork and phone calls..

Always rubbed me the wrong way, but for whatever reason, the same subs who keep getting burned stay with them about 50% of the time..
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Old 12-28-2018, 11:51 PM   #17
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Re: Millenial Contractors


I like how it is around here.

Hey, can you do a thing for me.
Sure, I need so much down.
Where do you want to meet...

Let me know when your done and I'll clear you out before you head home.

Small towns.


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Old 12-28-2018, 11:58 PM   #18
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Re: Millenial Contractors


Quote:
Originally Posted by Jaws View Post
The same guy and I were discussing the Mason and his exchange and he asked me what my sub agreement says about payments?

I said sub agreements? And held up my right hand and said this is the Masons and my agreement.

He said WTF are you out of your mind? Said you know how much liability you put on yourself by not having a sub agreement?

I told him that guy's dad was my grandad's Mason, he and I have worked on the same job sites our whole lives. We both know the score, and both of us are here for a long time. I'm not worried about it and neither is he.

I think a big part of it is not coming from a big city like he did, business is done a little different out here. I like it this way even if it is changing

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Old 12-29-2018, 02:12 AM   #19
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Re: Millenial Contractors


Quote:
Originally Posted by Jaws View Post
Just found out on this site actually that I'm a millennial contractor. I get a bill Thursday morning before the office opens you get a check Friday morning. No ifs ands or buts. Never missed one.
We have a phrase for it here. It's called "keeping short accounts"
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Old 12-29-2018, 02:34 AM   #20
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Re: Millenial Contractors


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We have a phrase for it here. It's called "keeping short accounts"
Short accounts meaning I don't owe for more than a few days? That's correct

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