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Detroit Michigan area--Lots of subs needed. (Loaders, Plows, Salters, Shovelers)

Discussion in 'Networking' started by GrandScapes, Sep 19, 2007.

  1. GrandScapes

    GrandScapes Senior Member
    Messages: 189

    We have recently aquired a new contract that we are going to need some major subs on. We need as many loaders and plow trucks as you can provide as well as about a 35 man shovel crew. Pay base is going to be net 30-60 days. The rates will be by the hour and listed below. All vehicles must be equipped with a flashing beacon and the shovelers have to have an orange safety vest.

    Front Loaders W/Pusher $100-$125 per hour
    Skid with box $65.00 per hour
    Plow truck $50.00 per hour
    Salt truck $60.00 per hour (salt will be onsite)
    Dump Truck with Salter $75.00 per hour
    Quad $35.00 per hour
    Shovelers $12.00 per hour

    Serious inquiries only!!! If you are interested, please email me directly for details @ sam.gembel@grandscapes.com
  2. Snowpower

    Snowpower Senior Member
    Messages: 636

    Congrats on this big contract you must have secured, but do you really expect a bunch of subs to wait 60 days to get paid?

    I can see you getting a lot of beef about that.

    Whats the gig? Sounds like theres a lot of detailed hand work to be done.
  3. bribrius

    bribrius PlowSite.com Addict
    Messages: 1,609

    i agree on that one. sixty days? im guessing the company isnt liquid enough to pay for the work as the work is accomplished. probably in the contract they acquired that the client has sixty days so the company wants sixty days because they cant pay until they are paid..
  4. Snowpower

    Snowpower Senior Member
    Messages: 636

    The guy at the beer store wants paid right then and there.

  5. GrandScapes

    GrandScapes Senior Member
    Messages: 189

    Yeah the 30-60 day pay is not the way we normally we run our subs and I could see where that would be frowned upon. The contract itself is about the same size as all of our other contracts put together. So in turn, we have to get paid before we could pay our subs. I do not think there is a landscape company around here with enough of a buffer to float that kind of cash flow.

    Most of our contracts are net 30-45 days, so you just have to look at it like you are doing the work directly if you know what I mean.

    There is a LOT of coin to be made on this one! If we could net even a 5% margin, We would be sitting pretty!
  6. Snowpower

    Snowpower Senior Member
    Messages: 636

    Probably the way to do it is have a bank back you with a line of credit for labor and expenses.

    Lots of employers pay the labor frieght before the check for that particular service or product sold comes in.

    In fact. Most do. It's going to be very challenging getting that many subs on site each time you need them. You know that.

    You might want to renegotiate that portion of your offer.

    People are not going to want to wait 6 to 8 weeks to be paid.
  7. bltp203

    bltp203 Senior Member
    Messages: 484

    Can you say what area the job is in?
  8. GrandScapes

    GrandScapes Senior Member
    Messages: 189

    It is off of 696 about 8 miles east of 75
  9. Keith_480231

    Keith_480231 Senior Member
    Messages: 389

    I am interested in working with you. Why don't you PM me.
  10. JD Dave

    JD Dave PlowSite Fanatic
    Messages: 11,194

    Lots of big companies are 60-90 days. It's not that they don't have the money, it's just their billing process. I don't mind those big accounts because it keeps other smaller contractors from under bidding you. Soon as they say your not going to be paid for 60 days, most people go away. Were big enough to carry those places now but up untill 5 years ago we used our operating loan at the bank, like was said above. It's a PITA but when the money finally starts coming in, your a happy man.
  11. GrandScapes

    GrandScapes Senior Member
    Messages: 189

    My point exactly...

    Our largest contracts for snow are sometimes 90+....It sucks when you have a bad winter, with a lot of payout needed to cover the capital. But in the end, it makes up for it. I would never even consider taking a loan from a bank to cover labor!

    We have to have this place signed by 10-1 and we have no where near the man power to cover it so we are probably going to shut em down....:(

    We will still do the mowing though :)

    Keith_480231 I didnt forget about you. You still game to come up this way?
  12. midwestsnowguy

    midwestsnowguy Member
    from midwest
    Messages: 36

    do you loader opps? i have loaders i can send you but my guys dont want to go, cat loaders 14' boxs, let me know
  13. GrandScapes

    GrandScapes Senior Member
    Messages: 189

    Where are you located at? How many loaders?
  14. WoW! $50.00 an hour supply your own truck???? Man, this ain't 1985:dizzy: Do you realize that diesel fuel is $3.00 a gal.? And liability ins. and personal property damage ins. ain't cheap either. Most contractors are paying upwards of $70.00-$85.00 an hour, at least around here on the eastside of macomb and wayne counties. good luck finding a crew to work for that.
  15. GrandScapes

    GrandScapes Senior Member
    Messages: 189

    Thank you for the luck..
  16. midwestsnowguy

    midwestsnowguy Member
    from midwest
    Messages: 36

    het shoot me another email if you want to work some stuff out, that way i can get everything in order
  17. alternative

    alternative PlowSite.com Addict
    Messages: 1,164

    What is the property.. sounds like its in my area?
    Just curious.