Standard AIA A401 Subcontract w/ 10% retention

Status
Not open for further replies.
sparky 134 said:
I am bidding on a project and the GC requires all subs to use this contract. Does anyone have any experience with it ? Any opinions ?
Click to expand...

Yes I have subjected myself to that document multiple times and of course I have also got an opinion on it. If you want to grow big, learn to deal with it. If you want to stay a large concern, you will also have to continue dealing with it. That is how big goes. I no longer play at the big table and therefore only will perform work using My contracts. Side note, if you are only doing new residential work, and some GC waves one in front of your nose, burn rubber in his parking lot. You need that like a hole in the head.
 
It's been quite a few years since I dealt with "retentions". Keep in mind that if you're working on a 10% profit margin and are fortunate enough to hit it you may be waiting a long time for that money due to circumstances way beyond your control. And if the job runs over, you're then waiting for that money to just get even. So if you can't afford to leave that money out there keep this in mind.

And as said above really be careful with a small general contractors, a lot can happen. In a few months, they may be driving a different color truck with a new name on the door.

FRANK
 
sparky 134 said:
I am bidding on a project and the GC requires all subs to use this contract. Does anyone have any experience with it ? Any opinions ?
Click to expand...
On the commercial side, I've been on both sides of the fence with that contract... That contract worked well for me in the past. First you need to do your "Homework" before you sign any contract..
 
sparky 134 said:
I am bidding on a project and the GC requires all subs to use this contract. Does anyone have any experience with it ? Any options ?
Click to expand...

Just like anyhing else if you know what you are dealing with up front it shouldn't be a problem. It's common enough for a contract to call for a hold on 10% to make sure you honor your warranty. It's also common enough for the bid price to reflect this additional expense. Unless the GC is local with a good tack record for payment ( if local add about 5%) if out of town/state just add 10% to the bid price so you can collect all of the original amount. As others have stated you may never see that final 10%.

A bird in the hand is worth two in the bush. The guy that came up with that adage wasn't an idiot. :grin: :grin:
 
i used it for years------- too bad nobody goes by the letter of the contract!! if there was something they could beat you up with, they'd use it!! but when if the wording was against their wishes --they didn't want to hear about the contract. your at their mercy!!! like said above--know your customer!
 
Status
Not open for further replies.
Top