# Here we go, slow paying builders



## Texas plumbr (Jan 18, 2015)

As a new business I am learning about the snares and pitfalls of owning a plumbing company. Any suggestions on dealing with a home builder that at the moment is a month behind on a invoice from December? Also going on three weeks on another.


----------



## sierra2000 (Sep 19, 2011)

Drop them all is what I learned really quick.


----------



## Shoot'N'Plumber (Apr 27, 2013)

Stop doing work for any GC's when first starting out. They will tie up all yur operating capital in projects and leave you hanging with not much left to go on. Then just when one pays you or the same one pays up for a 3 month past due bill you find yourself in the same boat never really getting anywhere. 

The only GC I do work for is the plumbing side for section 8 housing. They cut him a check then be cuts me a check, I had already agreed to feasible terms of 1 month on service calls only. He pays like clockwork

. Other than that I don't even do work for a good friend of mine who is also a GC as I've told him "if yur happy with the plumber you've been using for the last few years, keep using him". I do not want to ruin out friendship over a freakin water heater install.


HELL!! EFF IT!...stop working for GC's


----------



## gear junkie (Jun 20, 2008)

Every GC I've worked has screwed me over. After the 3rd one I said no more and will not work for any GC.


----------



## Shoot'N'Plumber (Apr 27, 2013)

gear junkie said:


> Every GC I've worked has screwed me over. After the 3rd one I said no more and will not work for any GC.


Dude! We posted at the exact same minute....this is wierd!!!


----------



## dhal22 (Jul 30, 2010)

GC's come and go for me. No payment generates a mechanics lien in my opinion. They have worked for me several times.

The good ones stay, the bad ones are told to go away. I love firing a GC.


David


----------



## SW Florida (Jan 10, 2015)

I treat them the same way as a home owner. 50% deposit and have them full out and sign a credit card form. When the job is done they have 5 days to pay or i zap their card. Havent been burned yet! My regular GC's still do the same process, its just the way it is and no one complains. We do the work they expect and everyone is happy. If a new guy has a problem with it, that tells me he doesnt plan to pay and i just blow him off.


----------



## Redwood (Sep 8, 2008)

Stop working for them...

And send your collections guy to get your money...


----------



## SW Florida (Jan 10, 2015)

LMAO....

I did play that guy once...

A guy who doesnt work for us anymore sold a job to one, didnt follow procedure, and the GC hadnt paid. I was in a mood one day and called the guy every 2 minutes being annoying as hell!!! With in 3 hours he paid the bill over the phone with a credit card. DONE DEAL!!! 

PS- And when i say annoying......
Differant accents, sexes, ages, etc.. It was actually entertaining to the whole office, we just kept laughing and couldnt stop. That was a fun day!!!


----------



## plumbdrum (Nov 30, 2013)

Burn the place down


----------



## danfan13 (Mar 31, 2011)

Do you have a contract? If so what are the terms? Read your contracts fine print about payment terms. The people on here telling you to not work for GC's are not going to experience the full benefits of our great trade. New Construction is way better than working on old plumbing IMHO.


----------



## Master Mark (Aug 14, 2009)

[/SIZEWhat you do is be a man and file a mechanics lien on the property TOMORROW.... 

This guy knows you are fresh meat and he tihnks you are hungry so he will string you along with the hopes of future work and once your lien rights have passed he will tell you to fu/k off..... 

dont play any games with him..... dont listen to his crap or his sad stories 
just file the lien and let him come crawling to you...

piss on him


----------



## Phat Cat (Apr 1, 2009)

Payment terms should be discussed before even quoting a price.

Lesson #1 - You are not a bank! No cash flow can put a small business under over night.

Lesson #2 - You never lose money on the job you pass on.

Lesson #3 - Your odds are better at a craps table than with a GC looking for a new plumber. You have to ask yourself what happened to the other plumber before you.


----------



## Titletownplumbr (Feb 16, 2011)

danfan13 said:


> Do you have a contract? If so what are the terms? Read your contracts fine print about payment terms. *The people on here telling you to not work for GC's are not going to experience the full benefits of our great trade. New Construction is way better than working on old plumbing IMHO.*


:laughing: :no:


----------



## TXPlumbBob (Dec 13, 2013)

Look into and file the lien. In Texas, I do not know about the others, there are time limits and procedures you must follow to properly file the lien. If this is a custom home copy the home owners and any bonding company or bank that is carrying a construction note. I do know the first one is only an "Intent to Lien". This is usually all it takes and the funds start to appear very quickly. 
As said above read your contract about how payments are to be made. That is the first paragraph I usually read even before what the insurance requirements are. Some require you to submit an invoice before a set date of the month (the 20th is most common) and payment on that invoice is made anywhere from the 10th of the next month or later. If you miss the cutoff that invoice just turned into a 60 day or 90 day invoice. Either way still file the proper paperwork on the liens to protect your company. If the GC does not like it he can change to you or find himself a plumber he can screw on the next project. 
75-80% of my work is under contract through GCs. It has been very good to us although we just caught one that nothing has worked to get us payed yet and I hate the idea of giving my money to a scum bag lawyer to get a judgement this ass hole may not pay anyway. One thing we also do is, every job is a separate account at the supply house and we do not pay the material bills until we get paid by the GC. The supplier has bigger and better lawyers than we do and they will send the intent letters out like clock work. 
Good luck, and DO NOT fall into the trap "Give me a good price on this one because we have 30 more to build next year". If you hear that double your price ASAP.


----------

