Random pic thread.

@Atla i know you talk about your 45-70 and thought you’d appreciate this.
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CasterTroy said:
S corp business doing s corp business shit
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One of the “joys” of managing a business on accrual based financials and filing taxes on cash based.

November billings are unusually light (can’t risk a GC actually paying on time) December billing are fat but late being sent. (Again can’t risk a rare GC quick pay)
 
Ron said:
One of the “joys” of managing a business on accrual based financials and filing taxes on cash based.

November billings are unusually light (can’t risk a GC actually paying on time) December billing are fat but late being sent. (Again can’t risk a rare GC quick pay)
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Our "end of year" is Nov 30 for "reasons"
 
Ron said:
One of the “joys” of managing a business on accrual based financials and filing taxes on cash based.

November billings are unusually light (can’t risk a GC actually paying on time) December billing are fat but late being sent. (Again can’t risk a rare GC quick pay)
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GC's like using the term, we don't pay until we get paid.
 
easleycrawler said:
Yeah, I've been learning more about this type of dealing in the construction world, in my new role at work.
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Pay when paid is pretty standard with the big players in commercial and high rise industries. Im not a fan of it personally, but the powers that be go along with it. We've had erectors that quit working with us because we are pay when paid 45. The big structural guys don't mind, but some of the smaller miscellaneous guys aren't able to make it work. I get it, some of these things can drag on for months to a year or more.
 
JSJJ388 said:
Pay when paid is pretty standard with the big players in commercial and high rise industries. Im not a fan of it personally, but the powers that be go along with it. We've had erectors that quit working with us because we are pay when paid 45. The big structural guys don't mind, but some of the smaller miscellaneous guys aren't able to make it work. I get it, some of these things can drag on for months to a year or more.
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Sadly we have to be used to 60-75 day terms on the supplier side of things. When we get a customer who pays quickly (under 30 days) it's a blessing.
Looking at you @No fries 😉
 
JSJJ388 said:
Pay when paid is pretty standard with the big players in commercial and high rise industries. Im not a fan of it personally, but the powers that be go along with it. We've had erectors that quit working with us because we are pay when paid 45. The big structural guys don't mind, but some of the smaller miscellaneous guys aren't able to make it work. I get it, some of these things can drag on for months to a year or more.
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It’s one of those levels of experience deal.
Very small contractors don’t balk because they are glad to get the work.
Next level isn’t savvy enough to even read the contract .
Next level balks and objects because what it does to cash flow.
(Skip this level I’m coming back to it)
Biggest players don’t care because they can float it.

Back to the skip. For mid size players who are contract savvy, anything is a negotiation. When i see PWP terms my first response is usually I need to adjust price - because that wasn’t what we bid to- our terms and conditions are attached to every proposal and they include Net 30. But the other side is, assuming the job is sized appropriately to be able to cash flow it - I’ll sign pay when paid, because I know if we ever end up in court, the GC will lose because it’s an illegal contract. So in that rare scenario you will ask for the moon and crazy damages, drag it , lose that “extra” but because the contract was illegal the GC will be on hook for all legal expenses. It’s a “mitigated win”

Part of the benefit of getting a masters course in construction law working for a big boy with in house counsel.
 
All that said, it’s why I’m very selective who I work with. In Jody’s world - if push comes to shove he has the option (as I did in my former life) of negotiating with suppliers or not dragging them out a bit. When you have to make payroll every week ….the options are significantly less.
 
easleycrawler said:
Yeah, I've been learning more about this type of dealing in the construction world, in my new role at work.
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Could always reunite you and JB and have a new division…..🤔
 
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