Speaking from someone that contracted in California only. GC's (or any contractor) are limited to 10% or 1000.00 whichever is less.We are expected to have operating funds available....Do general contractors get a deposit check from owners. If so, then why do they look at me like I'm from Mars when I tell them my company requires 33% down?
I think the OP is talking about the blank stare he gets from the GC when he hits them up.Speaking from someone that contracted in California only. GC's (or any contractor) are limited to 10% or 1000.00 whichever is less.We are expected to have operating funds available....
So true.Lots of customers are crooks too.
In California you can accept payment when work is done or materials delivered to the site. Progress payments allowed as long as you're consistent with that rule."Speaking from someone that contracted in California only. GC's (or any contractor) are limited to 10% or 1000.00 whichever is less.We are expected to have operating funds available...."
Well, I know where I won't be relocating to. So if the job is a $20,000 (labor, materials and equipment) contractors are expected to finish the job on a $1,000 budget? What if the owner doesn't pay?
Me personally, no deposit, no work.
My point was that if the GC can only get 1000.00 then the chances of said GC giving a sub a deposit are pretty slim. I know I never once gave a sub a deposit for any type of work. Net 30 all day, everyday.I think the OP is talking about the blank stare he gets from the GC when he hits them up.
I think the $1000 limit applies only to Home improvement. Different rules apply to home, commercial and industrial construction. Even if he is doing a home improvement job, as a sub I think the OP is entitled to as big a deposit as he can wring from the GC, with no legal limit.
Even in CA
Yes, all true.I think the OP is talking about the blank stare he gets from the GC when he hits them up.
I think the $1000 limit applies only to Home improvement. Different rules apply to home, commercial and industrial construction. Even if he is doing a home improvement job, as a sub I think the OP is entitled to as big a deposit as he can wring from the GC, with no legal limit.
Even in CA
Wow. Don't you trust your subs?Light commercial I have seen deposits.... larger commercial never.... Residential renovation in Michigan I usually get 25% down, but the bulk of this almost immediately goes to order the long lead items like cabinets. I would almost never give a sub a deposit, I have bought materials for guys before and a couple times given deposits to drywallers, but i won't be doing that anymore. If it comes to it I'll just pay their supplier.
I've never had a shortage of subs, so if someone doesn't like my rules then on to the next guy. That being said any smaller outfits I try and pay as soon as they are finished.
If you can't trust your subs why do you use them? If my sub said hey I'll need some money for such and such then I have no problem kicking to them. They've been working with me for many years and this has been the case before. Especially if they are ordering a bunch of high dollar fixtures.Framer53 said:Nope, I don't trust my subs. If I am on a 30 day pay schedule then why should I pay you up front? Yes I have adequate financing and I pay my subs within 7 days most of the time when they finish. To expect a GC to finance you is expecting a lot.
Great, I'll take the work you won't. I also might add as a condition to getting and renewing your license you are required to have a minimum of 2500 dollars in liquid assets.stuccova said:"Speaking from someone that contracted in California only. GC's (or any contractor) are limited to 10% or 1000.00 whichever is less.We are expected to have operating funds available...." Well, I know where I won't be relocating to. So if the job is a $20,000 (labor, materials and equipment) contractors are expected to finish the job on a $1,000 budget? What if the owner doesn't pay? Me personally, no deposit, no work.
I'm willing to bet that lack of trust is reciprocated.Nope, I don't trust my subs.
If I am on a 30 day pay schedule then why should I pay you up front?
Yes I have adequate financing and I pay my subs within 7 days most of the time when they finish. To expect a GC to finance you is expecting a lot.
The only time I've ever been burned was from another contractor. This is why I only enter into prime contracts. I tell other contractors who call me looking for estimates is I don't work under other contractors. There's two reasons for this. One is because I've been burned before. Two they are often my competitors wanting to know what I charge so they can give the customer a price so they can do it themselves.stuccova said:I'm willing to bet that lack of trust is reciprocated.When I hire subs I only hire people I trust. When they finish, I pay them the same day. I guess that's why I have no problem getting electricians, plumbers or any other tradesmen to knock out jobs for me on short notice. Do you get deposits from homeowners or businesses? Nowadays I think it is foolish not to. I've done work for a couple of GC's in the past 20 years that never paid and I was left paying for materials, equipment and labor out of my own pocket. Eventually they pay but only after lawyers get involved. $350 for a demand letter. whew!
:blink:they are often my competitors wanting to know what I charge so they can give the customer a price so they can do it themselves.