On December 3, 2017 at 02:57, crosen said...
OK, here's a little more background. I have an existing client. This client is in the real estate business, and he is now building a spec house with some investment partners.
When it came time to decide on an integrator for the spec house, my client championed my shop, but it was decided by the investment group that the GC would be the one awarding and managing the job. We were awarded the job, and are now in the contract signing stage.
Yes, I know this is a potential minefield, but I've made the decision to accept the risk.
I've been reading through the standard AIA Contractor-to-Subcontractor contract (
[Link: aiad8.prod.acquia-sites.com]), and it actually seems pretty fair.
If you already had an existing relationship with the client, the GC could step out of the way- they want their 6% but you were there already (although not with the whole group). I have a client whose GC tried to do the same thing but she, who's an architect by degree if not by practice, told him "I think not". Explain to the GC that you DO NOT buy equipment and wait to be paid for such a long time (you could say something like "I don't allow open accounts") and that you had already worked for your client but if they want to write your contract with language referring to scheduling, doing your part "in a workman-like manner" and specify the equipment and materials used, that might be OK but if the job gets out of hand and takes longer than proposed, you could be on the hook for a long time. If the project runs into legal problems, you could lose everything.
I worked for an integrator in '05 and a few years later, they took over the LV work on a house that was on MKE's "gold coast". It was Prairie-style, large and situated on the bluff overlooking Lake Michigan. It was also taking a really long time to pass the rough-in stage, then different contractor trucks could be seen parked in the area- the original electrician and LV contractors had been replaced by one that did both and they parked their trailer in the yard, so it was easier to just go to the site and work, rather than drag the trailer around at the end of the day to a place that wasn't near the installers' homes. After a while, worked stopped completely and a chain link fence was surrounding the place, with a pad lock. That told me it was in litigation and liens had been filed but it also meant the contractor's equipment and supplies were tied up so it was surprising to see their guys inside the fence, preparing to hook up the trailer so they could take it.
Turns out, the original GC had gone belly up and stopped showing up/taking calls/returning mail. I know people who know the homeowner, but not the fine details other than the homeowner took over as the GC and hired new people. I think the subs filed the liens because they weren't paid.
What do you know about the GC? Have they opened and closed businesses, been sued, filed for bankruptcy, etc? What kind of reputation do they have and, more importantly, what is his reputation among subs?
