Sub Contracting

[tdexxx]

Hello All,

Last year I finally got around to listing my neon/sign service business in the yellow pages, and since then I have been contacted by a few out-of-state maintenance companies who have offered me sub-contract work in my geographical area. Does anyone have any general advice as to how to make the most of this kind of relationship or any warnings about these companies?

One specific question I have regards the "Not To Exceed", (NTE), amounts that these companies send me along with their work orders. I know this NTE is the maximum I'm supposed to bill. Is the NTE effectively the amount that the company really expects to pay the contractor; that is, should I consider billing the company a lesser amount than the NTE to be leaving money on the table?

Thanks,

Tom

[Erik Sine]

I'll let you know my experiences about working for others and being the sub later today when I get a chance. Good topic to bring up, I'm sure others will chime in as well

[Erik Sine]

I'll let you know my experiences about working for others and being the sub later today when I get a chance. Good topic to bring up, I'm sure others will chime in as well

Got some between time.

Tom,

I've done quite a few jobs for some major companies on installations and repairs. One thing I would absolutely stress is that you are paid "Within" 30 days, have it in writing on all work orders they send you! A lot of times, and it's not right to do is they wait to get paid before paying you. Do you ask your employees to wait on getting paid before you get paid by your client? No, probably not. They like to work on a revolving door.

For big jobs and not sure how it works in your state, but I would send out a lien notice before commencing large jobs.

I'm not going to name names, you can research previous threads but it can be like pulling teeth to get paid at times that we have to pay out and wait to get paid.

The NTE is basically how they are bidding the repair and how they estimate what to bill the actual customer, so if it looks like it's going to exceed, let them know.

Building a good relationship is like any other that you would have with a client. Be on time and do what you said you were going to do. The smallest jobs can always lead to the biggest ones.

[geraldi]

The way to handle the NTE is to look over tye job when you get to the job and see if you can do it for that or not. If not, call them and tell the what it will take. If it's reasonable they will usually up it for you.

There are some companies that will take advantage. E-Mail me and I'll tell you who has screwed me. I have one co. in particular that I love to blab about.

[ProSignDesign]

In my limited experience the NTE has been for doing a survey of the job and doing what you can for the specified amount. After the NTE is met STOP working and send them an estimate for finishing the job. Most of the time you will get a PO for the job to be finished.