Contracting Question

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Hey guys,I recently started a Fab shop and only have had small jobs here and there which is fine.  I recently got in touch with a big company that is looking to sub-contract some workers for a job in LA.  My problem is I don't have the capabilities at this point to send anyone.  I could send bodies but I don't have any equipment i can send that far (im in arkansas).  I am looking for advice because it is hard to tell him no, I would like to find a solution to this so I can develop a solid relationship with this company for future work.  Thanks guys.MONSTER“The object of war is not to die for your country but to make the other bastard die for his.”  ~General Patton~
Reply:more info needed, what type of job and what are your responsabilities are?
Reply:Get some form of retainer, so your not spending all your own money.Rent the large tools, buy the smaller ones, Maybe start up another company to buy the tools and rent them back to you. this might work for workers also, hire them through a temp agency.Just my  opinion, not from a book, just from the road.Howes Welding Inc.www.howesweldinginc.com
Reply:I am waiting for a response from him now. I am assume he just wanting quality workers with equipment and they are doing the rest material wise. I believe it is for Plant Construction.  I thought about a temp service but they are bad about sending wave after wave of flakes. I have thought about hiring small guys with there own rigs and sending them out but not to sure how that would work out.  I am in a fog here I am willing to take my bruises and cuts to learn from this just to get this company on my side.  Thanks for the advice and keep em coming.“The object of war is not to die for your country but to make the other bastard die for his.”  ~General Patton~
Reply:I would be very very leery of this one.
Reply:This smells like a sad story in the making.  Using you, your capital and your credit; and then leaving you holding the bag.I offer three choices: Good, Fast, & Cheap. You may pick two.Hobart AC/DC StikMate LXHarbor Freight AD HoodHarbor Freight Industrial Chop SawDeVilbis 20 Gallon, 5 HP Compressor
Reply:I have been in the business of sending techs all over the country for years. Although they are not weldors they are skilled and in demand. There are tons of variables in sub contracting just waiting to bite you. Without specifics it's hard to say if it is worth the hassle. Where will they stay? How will they get there? How will they get around while they are there? What skill set do they have to have? Who pays the insurance? What is the liabilty risk to you? It is all about limiting the risk to you. If you don't know the people you're sending, and won't be there to fix it, if they don't perform you can bet the opportunity will be gone forever. If you could swing it, based on the info you gave, go yourself and let them see the guy who is running the show. There is a reason why they are willing to entertain your pitch, find that out and you'll have a better idea why they are not using local talent. I've seen people take the chance and lose it all and I have seen a few who did thier homework make some real money like we have. I would concentrate on adding people and equipment where you are, when the opportunity comes up again (and it will) you'll be in a better position to respond with much less risk. Quick money seems to go as fast as you got it.
Reply:Sounds fishy to me.   sounds like hes looking for a sucker from somewhere with low overhead to send to LA where EVERY expense is double to basically loose money and do the work  CHEEP.Vantage 500's LN-25's, VI-400's, cobramatics, Miller migs, synch 350 LX, Powcon inverters, XMT's, 250 Ton Acurrpress 12' brake, 1/4" 10' Atlantic shear,Koikie plasma table W/ esab plasmas. marvel & hyd-mech saws, pirrana & metal muncher punches.
Reply:I think he might be refering to Lousiana not Los Angeles.Millermatic 200Hobart Handler 120Victor O/A & Ramco BandsawLincoln 225 ACSnapOn AD HoodMiller XMT304/22AHypertherm Powermax 1650 G3Lincoln Idealarc DC600 w/Extreme 12 VSMiller Digital Elite "Joker"