Trade references?

[hbiss]

Part of any contracting business is being able to finance the upfront costs.

I disagree. As EC's we are NOT financial institutions.

In many cases financing upfront costs may be the way it is but that's only because we allow it.

We just talked about supply houses requiring full payment upfront for material ordered, why shouldn't contractors do the same with their customers?

-Hal

 

[Jerramundi]

In many cases financing upfront costs may be the way it is but that's only because we allow it.

We just talked about supply houses requiring full payment upfront for material ordered, why shouldn't contractors do the same with their customers?

-Hal

On point. It's because we allow it. And every additional EC who allows it perpetuates it. The problem is, it's hard to oppose it when it's an industry standard... but then again, change never comes easily.

The way things are isn't necessarily how they must remain.

 

[petersonra]

On point. It's because we allow it. And every additional EC who allows it perpetuates it. The problem is, it's hard to oppose it when it's an industry standard... but then again, change never comes easily.

The way things are isn't necessarily how they must remain.

better capitalized contractors have somewhat of a competitive advantage if they can carry at least some of the financing.

 

[zbang]

There's also the "you own it once it's been installed" part, which suggests that they, whomever that is, should pay for it no later than at installation. Doesn't address the pre-installation credit question.

 

[Jerramundi]

better capitalized contractors have somewhat of a competitive advantage if they can carry at least some of the financing.

No dispute there. Obviously some people might prefer your service if you can lighten the upfront financial burden, but the position I'm positing is that as EC's we shouldn't be responsible for any financing. It's simply not our job, IMHO.

Perhaps I'm being a little too absolutist because I technically "finance" SOME percentage of materials in SOME circumstances. I don't usually ask for a deposit unless the job totals over $500.

 

[Jerramundi]

better capitalized contractors have somewhat of a competitive advantage if they can carry at least some of the financing.

The point I was trying to make in Gbeu92's case is that he has the power to write his terms differently if he so chooses. That you're ultimately only responsible for financing if your terms say you are.

 

[Jerramundi]

Then again, on the flip side, if you require a GC to provide the materials, you might end up with a storage bin being dropped off on site full of 10 year old partial wire roles that he's accumulated in his garage over the course of his career, lol.