Originally Posted by Mark Harvey
I am an independent small contractor but a client has asked me to take on a house addition (1000 sq. ft.) as a project. I could use a little guidance on how to invoice as a general contractor and "the best" way to pay sub-contractors. The project includes everything from breaking ground, cement work up to painting and roofing. Should I, as Gen. Contractor consider percentages or lump sum? Any advice is appreciated.
Do you have a licence that will even let you do this.
I know in my area there's limits on
how much a job is going to cost that differant licences will allow you to take on.
To protect myself I would break it down as far as draws go.
Something like this.
Drying in (windows, doors, siding, roofing)
It worked for me.
This way I had the money to pay my subs, my help, and myself.
I also always got a deposit before each phase was started.
All it takes is one nonpaying customer to put you out on the street so be careful.
Some will come up with all kinds of excusses to get out of paying you even if the job is perfect, even people you have done work for in the past.
Be there making sure everyone is doing the job right, if not it's all going to come back on you not them.
Get everyting in writing, make them sign everything!
Do not move to the next phase until the one before it has been paid.
Pay your subs on time and they will come back and do more work for you.