I am a new contractor and would like to get into some small commercial projects to until I can employ more people and take on larger projects. I'm not sure how to get into the market though. Any tips or ideas. Is there some way to be notified or to find out when there is a company looking for bids for a new project?
Commercial bid question
- Thread starter ammklq143
- Start date
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lowryder88h
Senior Member
- Location
- Massachusetts
Bids
Bids
In the Massachusetts area we use the Dodge Report and Reed's Report. I would assume there are the same type reports in your area. Talk to another contractor.
Bids
In the Massachusetts area we use the Dodge Report and Reed's Report. I would assume there are the same type reports in your area. Talk to another contractor.
sandking
Member
- Location
- Southern California
Solicite. Open the phone book and look for GC's, call them and ask to be put on their "bid list". Here in CA, we use Bidmail and FTP sites to download drawings. Bid invites are sent from the GC and we go from there.
sandking
Member
- Location
- Southern California
Solicite. Open the phone book or search online for contractors in your area. Pick up the phone and call them asking for you to be put on their bid list. We get bid invites from the GC's. Here in CA, we use Bidmail or an FTP site to download drawings, then move forward from there. Good luck!
tyha
Senior Member
- Location
- central nc
You say your a new contractor. What did you do before. Commercial Electrical contracting usually requires experience. Were you just a mechanic and decided you could become a contractor?
Snarky.
tyha
Senior Member
- Location
- central nc
Really?? Considering the statement I really dont think so... I have been doing this a long time and have come from the absolute bottom to where Im at and Ive yet to know anyone that just "tries" out commercial projects without having some exp as to where to find them. a little background from the OP may have helped.
petersonra
Senior Member
- Location
- Northern illinois
- Occupation
- engineer
I am inclined to agree.
It is scary that so many people are desperate enough that they are willing to take on projects they know almost nothing about successfully fulfilling.
Twoskinsoneman
Senior Member
- Location
- West Virginia, USA NEC: 2020
- Occupation
- Facility Senior Electrician
It may take time to become profitable doing it. But IMHO any electrician should be able to prepare for just about any job and do it safely to code.
I say go for it OP. But prepare well and (as is obvious here) don't expect a lot of help from the competition in these hard times.
I say go for it OP. But prepare well and (as is obvious here) don't expect a lot of help from the competition in these hard times.
I think you are drawing/jumping to conclusions from nothing. There was a day when I went from electrician to (electrical) contractor. So, my first few commercial jobs were jobs I "tried" out. Sometimes you get it right on the first try and sometimes you don't.
I think snarky aptly describes your remark.
I say go for it. Start small on the projects. Learn the ropes of how commercial jobs run. Learn which are the good GC's and which ones are not. Do jobs that stretch your knowledge a little. (Not a lot, you could loose your shirt if you miss material and mis-estimate labor.)
When someone tells you the last EC quit find out who they are and why they quit (from the EC himself.) One thing TYHA is right about, there are hacks.
Bid off of prints and keep the prints. I have gotten on jobs and the job prints aren't the same as the bid prints and have had to amend/revise my estimate or contract. Don't be afraid to walk away from bad jobs (before they/you get started.)
Hire the best and most qualified people you can find. Here in Phoenix we don't carry any cards saying how qualified we are. Try guys out for a probationary period so you can figure out if they know what they say they do. Some guys can pass tests but can't put their knowledge to pratical use. Don't be short sighted when you hire guys. Keep putting them in classes even if it's not required, like here. One of my best employees was a kid who had learning difficulties but was determined to get a RW certificate from the local Community College. I, at one time, actually hired a cable guy to teach me and all the guys I had working for me how to use the compression tool for TV cable connectors when they first became available. I know that might seem a little silly, but he gave us a few tricks and pointers also.
Last edited:
colakyngo
New member
- Location
- United States, Milford
Hi,
Thanks very much for this comment. It help me to think about my ideals.
Tks again and pls keep posting.
Thanks very much for this comment. It help me to think about my ideals.
Tks again and pls keep posting.
That's your choice. Go for it, or get more experience in commercial.
I came from a resi background, but always wanted to do commercial.
I Got masters and jumped right in calling on GC's cold, bidding work. Finally I landed some and got my ass handed to me. Found out from competing EC's I was out of my mind taking jobs that cheap. Or getting involved with predatory GC's looking for saps like me. I was done before I knew what hit me.
So I went to work with a commercial EC doing grunt estimating and management duties. That was 35 years ago.
After two businesses, with one that failed, and the other was shut down because of stress, I have been a happy, successful estimator for many years, and it comes easy because I have had a ton of experience, and I can still do this way past retirement age.
What I'm saying is commercial EC is serious stuff. Take a few years and get some training from a SUCCESSFUL EC. If you don't know how to estimate, that will become clear really fast to who you are bidding, and your competition.
You can really get hurt
I came from a resi background, but always wanted to do commercial.
I Got masters and jumped right in calling on GC's cold, bidding work. Finally I landed some and got my ass handed to me. Found out from competing EC's I was out of my mind taking jobs that cheap. Or getting involved with predatory GC's looking for saps like me. I was done before I knew what hit me.
So I went to work with a commercial EC doing grunt estimating and management duties. That was 35 years ago.
After two businesses, with one that failed, and the other was shut down because of stress, I have been a happy, successful estimator for many years, and it comes easy because I have had a ton of experience, and I can still do this way past retirement age.
What I'm saying is commercial EC is serious stuff. Take a few years and get some training from a SUCCESSFUL EC. If you don't know how to estimate, that will become clear really fast to who you are bidding, and your competition.
You can really get hurt
Leestarkweather
Member
- Location
- Los Angeles CA
One Other Consideration about Commercial Projects---Cash Flow
One Other Consideration about Commercial Projects---Cash Flow
After 30 years of contracting, I want to warn the OP about cash flow requirements for commercial projects. If you have been doing residential jobs for a while, it seems quite common to make a point to see the Owner every Friday and get a draw (on long lasting jobs), so you can "make payroll" etc. The first time you attempt that you will learn that it doesn't work that way outside of the resi world. If you work for a GC, you will add another layer of delay, because you are working for the GC, not the Customer. Often bank loans are involved, progress vouchers, etc. Remember that the longer the Bank/GC/Owner owes you money, the longer they get to use it, and you don't. Interest rates are very very low now, so it is mostly a question of how much working capital you have to carry the outstanding A/R billings, not so much how much interest it costs you (I started in 1981, when mortgage rates were in the high teens and prime rate was over 14%. I didn't use a bank loan/line of credit for the first 10 years).
Commerical/Industrial is a whole other world. If you work directly for corporate clients, you can state in your bid what you propose for a progress payment schedule, and you can expect to wait 30 days (minimum) for the payment for the progress billing. More typical is 45 days, or 60. That is after you get a couple of weeks into the job to make your first progress billing.
On special order, non-cancellable things, like switchgear, gensets, and maybe some lighting fixtures, you can propose to get a deposit when you sign the contract, to get the long lead tme items ordered--some customers will do it, others won't. And still expect 30-60 days to pass from the time you present the customer with the invoice for the deposit.
You can lose everything very quickly if you can't carry the A/R billings--your credit rep with the supply houses, the contract you are working on (if you can't perform due to lack of cash), and much much worse things (like delaying payment of W/H payroll taxes, etc. to hold on to cash).
I'd think long and hard about the BUSINESS END of this jump into commercial work. Then also consider that the blow and go TI work is full of resi guys right now, so they are working for peanuts, and the more complicated jobs (UPS's, Generators, Process Wiring, etc.) may be over your level of experience, which can result in total failure if you don't know what you are doing.
Good luck.
One Other Consideration about Commercial Projects---Cash Flow
After 30 years of contracting, I want to warn the OP about cash flow requirements for commercial projects. If you have been doing residential jobs for a while, it seems quite common to make a point to see the Owner every Friday and get a draw (on long lasting jobs), so you can "make payroll" etc. The first time you attempt that you will learn that it doesn't work that way outside of the resi world. If you work for a GC, you will add another layer of delay, because you are working for the GC, not the Customer. Often bank loans are involved, progress vouchers, etc. Remember that the longer the Bank/GC/Owner owes you money, the longer they get to use it, and you don't. Interest rates are very very low now, so it is mostly a question of how much working capital you have to carry the outstanding A/R billings, not so much how much interest it costs you (I started in 1981, when mortgage rates were in the high teens and prime rate was over 14%. I didn't use a bank loan/line of credit for the first 10 years).
Commerical/Industrial is a whole other world. If you work directly for corporate clients, you can state in your bid what you propose for a progress payment schedule, and you can expect to wait 30 days (minimum) for the payment for the progress billing. More typical is 45 days, or 60. That is after you get a couple of weeks into the job to make your first progress billing.
On special order, non-cancellable things, like switchgear, gensets, and maybe some lighting fixtures, you can propose to get a deposit when you sign the contract, to get the long lead tme items ordered--some customers will do it, others won't. And still expect 30-60 days to pass from the time you present the customer with the invoice for the deposit.
You can lose everything very quickly if you can't carry the A/R billings--your credit rep with the supply houses, the contract you are working on (if you can't perform due to lack of cash), and much much worse things (like delaying payment of W/H payroll taxes, etc. to hold on to cash).
I'd think long and hard about the BUSINESS END of this jump into commercial work. Then also consider that the blow and go TI work is full of resi guys right now, so they are working for peanuts, and the more complicated jobs (UPS's, Generators, Process Wiring, etc.) may be over your level of experience, which can result in total failure if you don't know what you are doing.
Good luck.
You will need new tools.
You will need to know how to use the new tools.
you will need to know how to use the new supplies that will be installed.
You will need to know how bigger jobs flow.
You will need to read the spec. book.
Try to pick one item from a large job and bid as a sub to the larger elec. contractors, ie. tele/data, fire alarm, site lighting.
Will this be some sort of a minority start up? Do you have a CDL?
You will need to know how to use the new tools.
you will need to know how to use the new supplies that will be installed.
You will need to know how bigger jobs flow.
You will need to read the spec. book.
Try to pick one item from a large job and bid as a sub to the larger elec. contractors, ie. tele/data, fire alarm, site lighting.
Will this be some sort of a minority start up? Do you have a CDL?
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