Draw Schedule's

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jmsbrush

jmsbrush

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Central Florida
For Guys doing commercial jobs where the price of the electrical is from $60,000 to $500,000. How do you set your draws up? How do you like to be paid?
How long do you carry the job until you get your first draw.
If your fixture package is $150,000 alone. Do you ask for that amount of money several weeks prior to trim?
 
jmsbrush said:
For Guys doing commercial jobs where the price of the electrical is from $60,000 to $500,000. How do you set your draws up? How do you like to be paid?
How long do you carry the job until you get your first draw.
If your fixture package is $150,000 alone. Do you ask for that amount of money several weeks prior to trim?
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We don't do much commercial work - most of our customers are industrial - but maybe the same principles could be applied.
On larger or long running projects, I break the bid down into clearly defined and easily identifiable segments. Each segment is priced separately and billed on completion.
 
Bill 10% when we arrive on site for permits, and mobilization. Submit bills on the 25th for any work that will be completed by the 30th. Expect payment as per terms of the contract usually within 30 days. 15 days would be great and I'd bill every 15 if I can get someone to agree to it. Not usually though. Bill for fixtures when they are delivered or stored. You can stagger delivery of any materials including type and count of fixtures through your supplier.
 
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that the only work we do. Whats going to happen as was stated before is you are going to work until the billing date for the GC. Which is anywhere from the 20th to the 25th usually ( YOU NEED TO FIND OUT IMEDIATELY) You will submit a bill or invoice for the work you have in place to that point. Now if the GC has not asked for a schedule of values( which he may not) then thats good because it just requires more early thinking and fiquiring on your part. When they do ask for them you just front end load the crap out of it. Meaning the stuff you know you need to do first ( ie. slab ,temp power, mobilization, insurances? stuff like that) is what gets heavily weighted when it comes to putting a dollar sign on completing it. This way it helps generate positive cash through the job.
 
Thank you guys very much for the information. Typically we have been doing jobs up to $40,000 and I have been carrying the jobs with no money up front.

We are going to start bidding larger jobs but I'm not in the position to carry them if they are too big.
 
I set it up to get 30% for permit acquisition and plan check.

I keep generals and companies I don't know on a short leash.

If something happens I want to be able to walk away without laying in bed thinking of ways to get back at them.
 
I would say the answer must vary quite a bit based on location.

For a 200K - 2M dollar job around here submit by the 25th and usually get paid in 45 days. Don't count on that however - 60 days is not uncommon. Before the job starts you submit a schedule of values for each type of "task". While you do try to front load it, getting 10% to mobilize would not fly in this area. Large buy outs of fixtures or gear are included in your schedule of values and will be billed as part of your regular biling on the 25th. You cannot submit a request for paymnet until they have been recieved. If they are stored off site, additional insurance paper work must be submitted showing that the GC is a payee in the event of loss.

Retainage is also an issue you don't want to overlook. 5% is standard which on 1M is 50K. You won't see that money for 60 days after the project is completed.

While you might think this system is unfair, I really like the system in our area and hope it never changes. If prevents "small" companies from being able to even bid on larger jos because they can't carry money for that long. Luckly that is not a problem for our company. "The rich get richer." Not me, I just an employee.

I do laugh every time I hear someone suggest that YOU should dictate the terms of the contract. Let me know the next time that works on a gov project, or any project with a large GC that knows what they are doing. They will be using the AIA contract and there is no changing that.
 
shockin said:
I do laugh every time I hear someone suggest that YOU should dictate the terms of the contract. Let me know the next time that works on a gov project, or any project with a large GC that knows what they are doing. They will be using the AIA contract and there is no changing that.
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You may laugh, but a contractor that thinks they are a bank, is headed for trouble, no matter what size project, you need to do a background, and credit check, (know who your working for, you quoted "Let me know the next time that works on a gov project,"
There is a big difference from a goverment backed project, and a large GC that may look like he knows what he is doing, and may or may not have a good credit rating.
 
satcom said:
There is a big difference from a goverment backed project, and a large GC that may look like he knows what he is doing, and may or may not have a good credit rating.
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That is a fair point. If you're not familiar with a GC don't bid them, or factor in a PITA adder.

My bigger concern would not be with the GC. If they don't pay you, the owner will have to via liens ect. My bigger concern would be an owner going under before a project is completed, especially in this market. If the GC doesn't get paid, good luck getting your money.
 
right or wrong, contract or no contract, it just seems that "he who is expected to pay makes the rules" not that i like it but i always end up being the bank. i have been trying to figure a way around this for thirty years to no avail.
 
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