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Commercial Work

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  • Commercial Work

    I wrote this this Am for a Woodweb post and thought i would like to preserve it and share it

    Son, Do this first one at a heavy discount and i will get you ten more" My response is "Better yet, We do the first one at full price and I will give you ten discounts" ever heard the sound of a cowards exit, it is full of BS.

    I did a good 1000 Kitchens before switching to all commercial in 2008 (Date sound familiar ?) Glad I did And we are as big as our nearest three competitors yet do not take as big of Jobs (Getting older love less chaos)

    Bonds are generally only required above 50 and 100k and are required in the master GC contract. this will be exposed to you in the contract or it is the GC wanting the bond. Many good GCs who want your work will add cost in Contract for Bond, Lot less hassle on your part. A bond is no more than insurance to complete large Jobs need it, they are far more worried about the steel and heavy construction on this

    Probably will not be able to invoice materials until 1) it is onsite or at your shop 2) if it is at shop it has to be insured naming GC and client as Co-insured. They will require you lable and photo document the materials as dedicated to the job and contract. A good reputation with a good GC will get you a check much faster

    Contracts are generally by the GC or a basic copy of the AIA contract the GC is under. Billing will be on AIA forms g702 703. they can be intimidating but once you learn it simple enough. I use them in excell so it is fill in the blanks.

    You will be required to sign a partial waiver of liens before you get paid, Don't worry it means nothing til they pay You

    the 703 is a scedule of values which we align with invoicing
    line 1 materials
    line 2 submittals cost
    line 3 fabrication
    line 4 installation
    line 5 shop cost adds and deducts
    the 702 draw form is populated from the info on the 703 it is not brain surgery just something to learn as it brings all invoicing to a common method so the architect can present percentage of completion to the Client and Bank for payment, they will want to pay you as it is how they get paid. no one is gonna screw with you for a few grand on a multimillion dollar project

    each draw is all or a portion of the status invoiced, Generally on or before the 20th or 25th of the month work completed then hopefully (and good GCs do) cut you a check between the 15th and 30th of following month.

    At 40 years in the Biz i only work for good GCs I try a new one every once in a whil if they jerk us around we complete the work and kiss their ass good by ! most all come back confused as to why we will not work for them anymore. some very LARGE Gc's have also used us to get a lower number out of another company. they fail to realize some of us are ethical enough to tell each other when we have been Shopped. We then write a FU email and ask to be removed for the bid list for their company. A major Univ we work for has dropped Gc's for this practice, Good to have a decent reputation and eventually some clout.

    Remember "Do the good work and the Kings will find you" Do not take (unwarranted) shortcuts, keep GC and client involved, NO Hanky Panky None Zero

    And for the most part all will work out pretty good ! Good luck !

    Join the AWI smart is a good word for that one. recently architects have been following up on qualifications a lot stronger, this seems to be some good work on the Assc's Part.
    Attached Files
    James McGrew
    CAMaster ATC 508
    The principle of Measure twice cut once has not been replaced by a CNC

    Camera 1 ATC Closeup !

    fixed 4-27-2020
  • #2

    Thanks for that, Jim. Interesting food for thought. We are still doing mostly residential work--lots of little things right now - the occasional kitchen, with lots of fireplace surrounds, entertainment units, desks, closets and other similar work. We dipped our toes in the commercial market 2 or 3 years ago, but were turned off by the payment cycle, low margins and the fact that we worked with a couple of bad GCs right up front. Pricing in our market is cutthroat, where I can figure out what the winning prices are. A lot of it comes down to experience. May look at it again as we go forward.
    Steve Godding
    D&S Artistic Woodworking LLC