Commercial pricing

[Tiger Electrical]

I don't do very much work for GCs. They usually want me to be their bank, or they find someone cheaper (and there's always someone cheaper). Over the years I've always tried to get a 10% advance. Sometimes I get it & sometimes I don't. I typically set the rough payout around 85% of the total. Typically the GCs are carpenters and are used to 50-50. I explain to them that in carpentry there are kitchen cabinets & expensive moldings in carpentry trim where there are only switches & outlets in electrical trim.

Typically the rough payout is 30 days from when the invoice is sent so I may get called for final before I get paid for rough. For a good GC with a good payment history it's no big deal, but for a new GC I say "I don't trim until I've been paid for rough". You don't want to get stuck hiring a lawyer to collect the whole contract and you have to use your leverage when you can. After completion your leverage is gone. I wouldn't mind retainage if it was mentioned in advance and I could add the expense into the contract.

Dave

 

[ITO]

In your area

Correct, Texas is not a "pay when paid" or "pay if paid" state, the GC legally has 45 days to pay your draws, or release retainage after your last draw.

The idea behind these laws, is if a GC cant finance a job, they have no business being a GC.

The catch is you have to file on them in a certain time frame, and filing on a GC may prohibit you from working for them again.

 

[ITO]

When go you get retainage?

I usually get retainage about 90 days after the job is done, but could file on the GC after 45 days and force it at 55 days.

 

[cdslotz]

You are supposed to get it when you finish the job and it has been accepted. The GC usually won't pay it to you until he/she gets it. The GC usually has a bigger punch list than the EC. So, until the GC completes his/her punch list (getting all the subs to complete their's), nobody gets retainage (right/wrong, that's the real world). This process can take many months.

Problem is, if you have an owner fighting an incompetent GC, over something the GC, or another sub has done wrong, or another sub that has gone bust, then no retainage gets paid until the owner has satisfaction. Even though you have satisfied your contract 100%.
When you sign a contract with a GC, whatever the terms, you should send a certified letter to the owner stating that the GC is withholding 10% retainage, and the owner is ultimately reponsible to you for that money. You will need this if it goes to court. If the GC skips town and he has your money, you can still go back to the owner for your money, even thought the GC signed a waiver that he has paid all subs (in other words, committed fraud).

 

[bradleyelectric]

Problem is, if you have an owner fighting an incompetent GC, over something the GC, or another sub has done wrong, or another sub that has gone bust, then no retainage gets paid until the owner has satisfaction. Even though you have satisfied your contract 100%.
When you sign a contract with a GC, whatever the terms, you should send a certified letter to the owner stating that the GC is withholding 10% retainage, and the owner is ultimately reponsible to you for that money. You will need this if it goes to court. If the GC skips town and he has your money, you can still go back to the owner for your money, even thought the GC signed a waiver that he has paid all subs (in other words, committed fraud).

In Maryland we don't have to write letters until we don't recieve payment. Than write an intent to lien before 90 days. I withhold payment to Rexel in the amount that I am owed. I have my money, Rexel is who doesn't have theirs. I keep very close communication with them on my accounts and when I expect payment to come in. Retainage is typically 30 days after job is turned over, and I do work the phones when it is close to payment time. If payment doesn't come, Rexel files the paperwork.