# Subcontracting how ????



## painting101 (Jul 11, 2010)

How does subcontrating work with new constructions? How are we paid? Is it that I have to have the funds to do the work or am I given something to work with. I want to start but I want to know the ins and outs.


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## ewingpainting.net (Jun 2, 2008)

You set up a draw schedule. Most the time it's on their terms. Sometimes you can get them to do a material draw prior to starting the job. You would pad that to help with the labor, say 25%. Then you will have what's called progress payments, 30% 30% 15% what ever adds to 100%. You might be required to withhold retention (10% per billing) the retention gets rebilled at the end of the job. You will also be required to give them releases. That you will learn quick sense they won't issue a check with out one.


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## bikerboy (Sep 16, 2007)

Tract homes out here, they tell you how much per sq.ft. you get. Then you get paid every 60-90 days depending on the builder. 

Custom builders are more along the lines of what Ewing said.


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## NEPS.US (Feb 6, 2008)

painting101 said:


> How does subcontrating work with new constructions? How are we paid? Is it that I have to have the funds to do the work or am I given something to work with. I want to start but I want to know the ins and outs.


Get ready for some lumps.


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## johnpaint (Sep 20, 2008)

bikerboy said:


> Tract homes out here, they tell you how much per sq.ft. you get. Then you get paid every 60-90 days depending on the builder.
> 
> Custom builders are more along the lines of what Ewing said.


Biker that sounds like fun, where do I sign up? I do belong to AARP, do I get a discount?


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## dvp (Jun 21, 2010)

The ones ive done required proof of liability one million/million(standard painting liability policies usualy do not cover tract homes and condos) and a certificate from workmans comp. i set up seperate charge accounts for each builder with supplier and they provided sea train on site. in ca you must file priliminary notices to establish lean rights with a gc. the payments were in acordance with their billing procedure. they all held 10% till after carpet final. i have have had a couple older guys that did everything on a handshake and had me come by their houses when i was done and wrote a check, though. kind of nice actually.


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## johnpaint (Sep 20, 2008)

dvp said:


> The ones ive done required proof of liability one million/million(standard painting liability policies usualy do not cover tract homes and condos) and a certificate from workmans comp. i set up seperate charge accounts for each builder with supplier and they provided sea train on site. in ca you must file priliminary notices to establish lean rights with a gc. the payments were in acordance with their billing procedure. they all held 10% till after carpet final. i have have had a couple older guys that did everything on a handshake and had me come by their houses when i was done and wrote a check, though. kind of nice actually.


Wait a min, too much information. My head hurts now.lol


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## Schmidt & Co. (Nov 6, 2008)

I give the GC my wallet and tell him to kick me in the nuts. I usually come out ahead that way.......:whistling2:


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## aaron61 (Apr 29, 2007)

Schmidt & Co. said:


> I give the GC my wallet and tell him to kick me in the nuts. I usually come out ahead that way.......:whistling2:


That's f'n Hilarious!!!


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## NEPS.US (Feb 6, 2008)

Schmidt & Co. said:


> I give the GC my wallet and tell him to kick me in the nuts. I usually come out ahead that way.......:whistling2:


Nomination for post of the year!


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## ProWallGuy (Apr 7, 2007)

NEPS.US said:


> Nomination for post of the year!


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## Workaholic (Apr 17, 2007)

Schmidt & Co. said:


> I give the GC my wallet and tell him to kick me in the nuts. I usually come out ahead that way.......:whistling2:


Ever since you switched avatars you have been on. :thumbsup:


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## Schmidt & Co. (Nov 6, 2008)

Its _all _in the avatar.....:whistling2:


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## Workaholic (Apr 17, 2007)

Schmidt & Co. said:


> Its _all _in the avatar.....:whistling2:


Got you out of your shell.


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## johnpaint (Sep 20, 2008)

Workaholic said:


> Got you out of your shell.


Yeah, and he has way more post now.:thumbup:


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## Schmidt & Co. (Nov 6, 2008)

1000 posts by the end of October or bust!!!!


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## aaron61 (Apr 29, 2007)

Schmidt & Co. said:


> I give the GC my wallet and tell him to kick me in the nuts. I usually come out ahead that way.......:whistling2:


My wife heard me laughing out loud.When she asked what was so funny I could barely read it back to her.

All of my late payments & non-payments are from GC's. She said if I ever l work for 1 again she'd kill me!
Don't tell her we're working with 2 this month:whistling2:


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## ewingpainting.net (Jun 2, 2008)

If you don't know how to do business being a subcontractor, you end up looking like a lil boy that got kicked in the balls. You just got to know how to deal with them GC's. Yes there are some bad ones just as there are bad HO's. Just got to weed them out like any other you would do business with.


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## straight_lines (Oct 17, 2007)

aaron61 said:


> That's f'n Hilarious!!!


 Yea because with to many GS's its true.


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## ewingpainting.net (Jun 2, 2008)

straight_lines said:


> Yea because with to many GS's its true.


Its better to have 50% of 5 GC's work rather than have 100% of 2 GC's. The ones that you do 100% of their work can have you by the balls real quick. Specially if you have 4 or 5 project going at the same time. So I would have to disagree the more you got the less they have you by the balls and it's easier to tell the bad ones to pound sand. Sense some like to dangle a carrot. I've done work for world wide, national wide, state wide and local wide. Probably about 200 GC's in my career and I can count on one hand that to screwed with us. If you don't know how to play their game you should just stick to repaints. Cause it takes skills to do business with them.


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## painting101 (Jul 11, 2010)

So basically being a subcontractor in new constructions or renovations, I should collect some money to start the job? Or are there instances that I have to wait to the end?


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## Schmidt & Co. (Nov 6, 2008)

I always require a deposit and or progress payments. Thats not to say that the GC will give it to you. How much money are you willing to walk away from? *Thats *how you should structure your payments.....

The thing with a lot of GC's is, they know the longer your on the job, the harder it is for you to walk off for non-payment.


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## straight_lines (Oct 17, 2007)

Oh I do the last NC I did was in 2008. Even then I had repaints as 75% of my business. Last contractor I was working with I would bid throu him and have to deal with his partner on the job. I did one full house to completion.

His partner would play stupid to everything we discussed during bidding, and he had my crew doing punch work for other painters he had working in the development before me.

I ended up pulling my crew, and I guess he moved on to the next sucker. It was such a pain in my ass.


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## BC_Painter (Feb 14, 2010)

painting101 said:


> How does subcontrating work with new constructions? How are we paid? Is it that I have to have the funds to do the work or am I given something to work with. I want to start but I want to know the ins and outs.



Depends who you sub for.

A recent company I did work for, you don't have to front money for mats, but they come straight off the final cheque, then once you've signed for a job you haven't seen you wear their shirts, can't say you're a sub, and do the work.

At the end of the job you realize that hey, I paid money to do this work rather than made any, then they tell you "hey we'll fix it" and after 2 more months, no soutions, and weeks of making 2-3 bucks an hour, you cut your losses and stop working for them.

Hopefully your subbing experience goes better, but if you see any of the above red flags, RUN :whistling2:


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## JNLP (Dec 13, 2007)

Builder I work with gives 2 payments. All paint goes on their SW account & caulking, putty, naps, etc on my account. After ceilings, 1st coat on walls, and installed trim (carpeted areas) are painted you get 50%. Then after completing 2nd coat, rest of trim, anything exterior, and touch ups you get the other 50%. Have invoice in by friday you usually get your check by tuesday.


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## Colour Republic (Aug 20, 2010)

Schmidt & Co. said:


> I give the GC my wallet and tell him to kick me in the nuts. I usually come out ahead that way.......:whistling2:


 







Sorry to bring this post up again, but i'm glad to see it's the same in the US as in the UK


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## Langpony (Nov 29, 2010)

Usually when you subcontract with a general contractor you have to wait 30 days from invoice date to get paid unless the general contractor pays quicker or you can make other arrangements with them.


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## Paradigmzz (May 5, 2010)

painting101 said:


> How does subcontrating work with new constructions? How are we paid? Is it that I have to have the funds to do the work or am I given something to work with. I want to start but I want to know the ins and outs.



Its all trial by fire. If your not careful, your gonna get burned. 

Every GC is different, and no answer by us is gonna be 100% for you. The key for me is creating a contract up front outlining pay structure as well as what you will and will not be doing. Especially in customs. Every additional change (ie. extra colors, gel stained doors, added cabinetry, stain grade changes, you name it...) not specified on contract is a CHANGE ORDER- bill accordingly and dont do the change until they sign off. 

Above all though, your never gonna get it until you find out yourself. It will take getting screwed by a GC (either financially or through BS) to wise up to the necessary precautions you will need to take in the future. I think these problems are called "growing pains" and (un)fortunately are necessary to developing a healthy mindset on how to run a business.


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## James Boyd (Jan 15, 2011)

OK cut all the BS, This is how I got my first contract.
I walked into the Builders office and told him I wanted to paint for him.
I had my Subcontractor card for workers comp. ( Arkansas )
I had the money to paint one new house.
I had One Million Dollars Liability Insurance. ( Loids)
I had the equipment to do the job.
We settled on a price to be paid upon completion of the job. Per Square Foot.
The Builder will want to hold out a percentage for final, no more than 10%.
Never do ANYTHING without a contract.
Never do Anything that is not in your contract. ( Insurance Reasons )


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## Workaholic (Apr 17, 2007)

Schmidt & Co. said:


> 1000 posts by the end of October or bust!!!!


 A 1000 for the first two years and three months for the next 1000
:laughing:


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