sure don't. I am trying to stay as liquid as possible these first few years. Plus, i heard putting collateral down to fund client projects is very risky, especially in residential. I hope there is a way around this as it is a pretty large project.
dv1041 said:Hey Guys, started on my own as a general contractor doing high end remodels about 3 years ago. I just took my first job in which the client is not paying out of his pocket but financing it through his lender (job is a $250,000 remodel and addition). Here's the situation: I always ask for at least a 15-20 percent deposit because i am not big enough yet to get 50-75kk worth of credit with my vendors. Never had an issue. Today my client called and said bank will not give any money up front for deposits and will only draw at the end of every month (so i have to front the initial material and labor) also, job should only take about 2 months. THEY ALSO WANT ALL PO'S AND RECIEPTS. I feel like I am divulging all of my company info along with profit which is 15 percent. I feel the bank and client should only need my invoices for work and materials. How do i handle this?
svronthmve said:I don't deal with third party payments. Contract signed with owner directly. 50 % down @ signing, balance on completion. Intermittent scheduled payment if job extends over 2 weeks. Customer is responsible for fronting all the money. I'm not your bank. Don't like it that way? Then we don't do business. Does it knock me out of some jobs? Sure. Do I sleep well at night and have my bills paid? Absolutely.....
Which is why I wouldn't be bidding that size job. Don't need the headaches...:no:
Just out of curiosity, what percentage do you expect to make in profit after ALL expenses are factored in?