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Discussion Starter · #1 ·
Hey All,

I was awarded a bid to become the sole electrician for two of the largest residential builders in the USA. They want to start my company off doing 4 houses a month. I bid each house at $17,000. The houses aren't very large. Two stores with attached garage. I have two electricans I'm paying $50/hr and we play to finish the home in 3-5 days. I wanted to know if anyone here has experience working with home builders such as Pulte, DR Horton, Lennar etc? Do they pay on a timely basis? Has it been profitable? Etc Thanks
 

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Discussion Starter · #3 ·
Good luck Joe. I’m not sure your numbers are high enough. $68,000 gross and you have to pay 320 hours out to the two employees. What’s your hourly cost per man? Then there’s the material market now.
Yeah. I'm paying them $50/hr and I would be working as well. I priced all the material for the job at $5,000 and told the builder I have included material escalation with such an unsure market with materials.
 

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You are on your way to the poor house or jail.
2 men/ house for a week = $2,000 pay check/man then workers comp and taxes that you pay towards them ( SS, Medicare, ...) add $1,000/ man. You are now up to $6,000 per house + $5,000 material + markup= $12,000 Your time 60 hours/week x $100= $6,000. You have just lose money at $18,000 cost. This DOES not include business expenses such as medical, retirement, insurance, permits, vehicles and so on.

Do not try to pay these guys as W2 workers it will get you burnt big time. You need to give these guy that work for you benefits or you will lose them and if you don't have a way to replace them right away you will fall behind on schedule and watch out for the builder company to come after you for time of completion not met. Just a few thing to think on.

Good luck
Cowboy
 

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have fun getting fired joe...cant wait for the next thread about how you were unfairly fired for losing the company money lol
 

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I had a contract to do apartments with Dr Horton when the a__ hole started his business.
We were 100% done and the complex was 50% filled with tenants and he still refused to pay our final draw. His partner finally did. I would never work for those people again. The anger is swelling up as I think of them.
As smart as you are they are smarter because they know what the last phase cost down to the penny. Usually the only reason they change subs is to get new blood and then teach the new blood the rules of the game. To them it is a game they do not care how you do the job, just pass what ever inspections you have to.

Do not do any favors no matter how small. File the paper work for every extra the DAY it happened, not the next day. Get the signature of RESPONSIBLE parties. Best find that out quick, who is a responsible party. Certainly not the sales staff.

You low on money from the get go. Exercise you inflation clause and see how that goes.
You had better put a fire under the boys, 5 days is to long.
When I was roping I bought wire on 2500 foot reels. They stayed on the truck, pull in what you needed cut and then reel back and secure. Packages take to long and you are responsible (I bet) for broom clean when your done.
Get to know the HVAC guy and plumber, you may need their help some day.

Watch your bottom line and RUN, RUN, RUN.
 

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Discussion Starter · #11 ·
I had a contract to do apartments with Dr Horton when the a__ hole started his business.
We were 100% done and the complex was 50% filled with tenants and he still refused to pay our final draw. His partner finally did. I would never work for those people again. The anger is swelling up as I think of them.
As smart as you are they are smarter because they know what the last phase cost down to the penny. Usually the only reason they change subs is to get new blood and then teach the new blood the rules of the game. To them it is a game they do not care how you do the job, just pass what ever inspections you have to.

Do not do any favors no matter how small. File the paper work for every extra the DAY it happened, not the next day. Get the signature of RESPONSIBLE parties. Best find that out quick, who is a responsible party. Certainly not the sales staff.

You low on money from the get go. Exercise you inflation clause and see how that goes.
You had better put a fire under the boys, 5 days is to long.
When I was roping I bought wire on 2500 foot reels. They stayed on the truck, pull in what you needed cut and then reel back and secure. Packages take to long and you are responsible (I bet) for broom clean when your done.
Get to know the HVAC guy and plumber, you may need their help some day.

Watch your bottom line and RUN, RUN, RUN.
Thanks for this response.
 

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Discussion Starter · #17 ·
You are on your way to the poor house or jail.
2 men/ house for a week = $2,000 pay check/man then workers comp and taxes that you pay towards them ( SS, Medicare, ...) add $1,000/ man. You are now up to $6,000 per house + $5,000 material + markup= $12,000 Your time 60 hours/week x $100= $6,000. You have just lose money at $18,000 cost. This DOES not include business expenses such as medical, retirement, insurance, permits, vehicles and so on.

Do not try to pay these guys as W2 workers it will get you burnt big time. You need to give these guy that work for you benefits or you will lose them and if you don't have a way to replace them right away you will fall behind on schedule and watch out for the builder company to come after you for time of completion not met. Just a few thing to think on.

Good luck
Cowboy
Hey, I appreciate you taking time to respond. I'm going to look into this.
 

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Hey All,

I was awarded a bid to become the sole electrician for two of the largest residential builders in the USA. They want to start my company off doing 4 houses a month. I bid each house at $17,000. The houses aren't very large. Two stores with attached garage. I have two electricans I'm paying $50/hr and we play to finish the home in 3-5 days. I wanted to know if anyone here has experience working with home builders such as Pulte, DR Horton, Lennar etc? Do they pay on a timely basis? Has it been profitable? Etc Thanks
Like others have said, these guys are pros and know about you than you do about yourself. If you have never been through the ringer with these types, well let's just say it's an experience.

You can make money (I'm not commenting about your posted price) with these guys, but it's a hard dollar to earn/keep.

Will these be your only customers? If yes then you pretty much are putting them in control of you (and they know it).

Make sure everyone understands the pay arrangements.

I know we sound negative but if you work hard and watch yourself you can make it. Keep your guard up and job cost. I would try to not commit to a price for the development until you did a few.

Good luck Joe, let us know how it goes.
 

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Discussion Starter · #20 ·
Like others have said, these guys are pros and know about you than you do about yourself. If you have never been through the ringer with these types, well let's just say it's an experience.

You can make money (I'm not commenting about your posted price) with these guys, but it's a hard dollar to earn/keep.

Will these be your only customers? If yes then you pretty much are putting them in control of you (and they know it).

Make sure everyone understands the pay arrangements.

I know we sound negative but if you work hard and watch yourself you can make it. Keep your guard up and job cost. I would try to not commit to a price for the development until you did a few.

Good luck Joe, let us know how it goes.
Hey. I really appreciate your reply. I am starting a small union residential shop. I contacted the chief estimator at the largest shop in my state (he's a friend). We went through the numbers together and he said if you had 2-3 guys and knocked out a house in 3 days it could be done. So I can adjust my number and trying to figure out a profitable number. Of course I would be working full time on this as well to start. Just trying to find a profitable number with the prints I have.
 
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