Commercial handrail job - materials cost

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I am getting ready to start a commercial ADA handrail job where the materials costs are about $4500.00.Is it standard practice to get the materials costs up front from a contractor or do you guys front out the money for materials?Thanks for the adviceMiller TrailBlazer 301Miller 12rc feederMiller ShopmasterMiller 22a feederPlasmaCam CNC TableHypertherm 45 cutterDrills, saws, blast cabinets etc.
Reply:Not quite standard, but pretty common. It depends on the job. You need to inform the contractor in the bidding process that you will need the money up front so they can have the funds available. The general will try to keep as little of their own money spent on a project as possible, and will try to get everything payed for by the client. When you get money for materials that means there will be a long time between when the contractor puts that money down and when he gets it back after your work is complete. Public jobs may require you to finance the work, because the customers tend to pay really slowly, that's why it's good to know in the bidding process, so you can budget in for getting a loan.Ian TannerKawasaki KX450 and many other fine tools
Reply:Standard practice for a smaller job like that would be no money up front, payment 30 days after completion.  Sometimes when you get in the 50k+ range you can get into some kind of progressive billing arrangement, but they are few and far between.That general contractor probably has a rolodex full of misc. metals contractors willing to work on their own money, so unless your price is significantly lower than other bidders, they probably wont work with you.       If you want to run with the big dogs, you gotta have deep pockets.  Talk to your bank about a line of credit where you can borrow against your receivables if you plan on going after this kind of work.Beck's Welding and Fabrication, Inc.-Misc. Metals Fabrication & Installation-
Reply:Depends on the customer. I had some that would pay like fast clockwork, so I would front it. I had some that had to pay up front. And I had some that had to pay in full, up front, and I would double EVERYTHING! "F" me once, your fault. "F" me twice, my fault."Where's Stick man????????" - 7A749"SHHHHHH!! I sent him over to snag that MIC-4 while tbone wasn't looking!" - duaneb55"I have bought a few of Tbone's things unlike Stick-Man who helps himself" - TozziWelding"Stick-man"
Reply:Thanks for the responses. Based on this, I think I'll just cover the materials out of my pocket.I actually have a check coming from a "draw" on another job that I can use to cover my materials, so I'll still have money to buy hay for my equines. I am not to concerned about or think I'll ever run with the "big boys". I work alone and that limits the size of the jobs I can take on. I have had contractors ask me to take on jobs that would require a hand, and I don't bother with those. I prefer to work alone.I am in the middle of a 20K handrail job, a 25 foot gate, and have this ADA handrail job coming in two weeks.....better get weldin!!Thanks for the help.Miller TrailBlazer 301Miller 12rc feederMiller ShopmasterMiller 22a feederPlasmaCam CNC TableHypertherm 45 cutterDrills, saws, blast cabinets etc.
Reply:with pics
Reply:I have a small shop that I do occasional work out of. I have to get material costs up front bu anyone that I do work for know this. It would probably make it hard to get bigger jobs but thats just where I am with my little shop. I cant play nor do I really want to play with the big boys. Maybe one day.Making as much progress as a one legged duck in the middle of a pond, just going in circles.
Reply:what about a deposit? 50% or so. but like others have said tho, if they have to cough up money they might go elsewhere.
Reply:In this day and age, its not uncommon for companies to get at least 50% up front or even 100% if its for a company that you havn't done any work for.Long gone are the days where you could give 100% credit only for the company to go bust or not pay because of the current climate.I don't think a company would argue about 50% up front especially since they want you to do the job, what you do need to watch out for is if they argue the case about the upfront payment, will they really pay you when the job is done??I normally add the cost of the material Plus 25% as an upfront payment the 25% covers for a bit of your labour shold they not pay, but a good thing that works for me is i tell my customers that the price i quoted is for payment up front 100%, If they want credit then i would give them a higher price to cover the cost of chasing up the invoice etc..
Reply:I get 30% down.  I recently did a state job were they did not pay a down payment.  However, I then bid it to account for interest on the use of my money.  I am not opposed to "floating the note", if it is beneficial to me. However, I would try to get something down (more than material cost, too).  Wait too long to collect and they might do something foolish with the money you are loaning them.
Reply:Some banks also require material or product to be onsite before they fund the draw. I always try to get money up front because I don't like to be one of those guys chomping at the bit for cash when the job is done, I like to have a little bit of a cushion up front of possible. That being said, I am no where near one of the big guys either.