Strictly Labor (Part II)

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EC's vs GC's

EC's vs GC's

It seems from my view point that GC's tend to hold the money till you can't take it anymore (ie get out of the business). If you're not protected by mechanic's lien laws (and even if you are), if you don't own the material you've installed it's tough to get your money.

I've seen GC's roll over EC's because they save a bunch of money by not paying. One small contractor told me he had to get a job, because local GC's had $100,000 his money
 
What I was describing was how some development company's change name and address like we change our socks and underwear. There are many really good and reliable developers out there nowadays, and maybe this problem has gone away over the years due to bonding, but I still remember the dissapearing act of years gone by. Small developers would get a medium size project going, complete and sell enough units to reach the proffit goal they had in mind, and then go quietly file bankruptcy leaving all the tail end sub contractors (and homebuyers) in the lurch. Within a year the same players would be at it again in the next county with a new company. When I did townhouse projects and track houses, I made sure each house or unit was paid separate, payment in full before 30 days from completion of each unit, or work stopped dead until the money flowed again.
 
solaeros said:
When it comes down to it the gc is in the same position as the ec for this project. the whole subdivision is under the oversight of a development company from california.
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Have you even checked out this development company? Do you know how long they have been in business? Do you know of other suddivisions that they have completed? Do you know who's neck you may have to wring to get your money? Know who you are dealing with and you are twice as likey to get paid.

when you play poker you should never think about the money because it interferes with your game. When you contract you should only think about the money because that is the game.:grin:
 
macmikeman said:
What I was describing was how some development company's change name and address like we change our socks and underwear. There are many really good and reliable developers out there nowadays, and maybe this problem has gone away over the years due to bonding, but I still remember the dissapearing act of years gone by. Small developers would get a medium size project going, complete and sell enough units to reach the proffit goal they had in mind, and then go quietly file bankruptcy leaving all the tail end sub contractors (and homebuyers) in the lurch. Within a year the same players would be at it again in the next county with a new company. When I did townhouse projects and track houses, I made sure each house or unit was paid separate, payment in full before 30 days from completion of each unit, or work stopped dead until the money flowed again.
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What! check the builders credit, and past preformance, who does that, just dive in the water is fine --- http://www.iht.com/articles/2007/04/15/bloomberg/bxhome.php

In my area alone, Kara Homes, a New Jersey builder, left all the subs unpaid, many of them now in deep debt themself, with no chance of recovering.
 
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including one EC, who doesn't work on high margins, who according to court papers is holding the note on over $500,000..... that's a lot of money...
 
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