[RE-wrenches] general contractors taking a cut...

Mon Feb 2 14:47:01 PST 2009

In my experience of six years, we have had to "do business" with a GC or
other intermediary three times. We haven't had a real problem, other than
slow payment. There have been other times where a 3rd party received some
sort of management fee from the client, but that iwas not part of our
contract. My point of all this is to mention that there is real risk
operating as a subcontractor: use your own contracts (a GC's standard
contract terms and conditions may not be in your favor), file your
preliminary lien notices on time and be prepared to follow up should the GC
breach the contract.

- Peter

Peter T. Parrish, Ph.D., President
California Solar Engineering, Inc.
820 Cynthia Ave., Los Angeles, CA 90065
Ph 323-258-8883, Mobile 323-839-6108, Fax 323-258-8885
CA Lic. 854779, NABCEP Cert. 031806-26
peter.parrish at calsolareng.com 

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From: re-wrenches-bounces at lists.re-wrenches.org
[mailto:re-wrenches-bounces at lists.re-wrenches.org] On Behalf Of Max
Sent: Monday, February 02, 2009 2:15 PM
To: 'RE-wrenches'
Subject: Re: [RE-wrenches] general contractors taking a cut...

My experience over the years as an electrical contractor is that GC's charge
the owner 15% to manage your sub trade. Over the years we've done mostly
large scale electrical. When entering the Solar industry in 1999 we started
doing residential with a few commercial installs.

The same rule applied as with the commercial solar - the GC added 15% to the
sub contract price and passed it on. This should be the practice on
residential construction when there is a general contractor involved.
Technically you're working for the GC and he interfaces with the homeowner
unless he wants you to do that directly.....

Max Balchowsky

SEE Systems

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From: re-wrenches-bounces at lists.re-wrenches.org
[mailto:re-wrenches-bounces at lists.re-wrenches.org] On Behalf Of Joel
Davidson
Sent: Friday, January 30, 2009 8:21 AM
To: RE-wrenches
Subject: Re: [RE-wrenches] general contractors taking a cut...

With only a few exceptions, every general, electrical, and roofing
contractor I have worked with, taught, or "partnered" on a job that needed
PV either stopped offering PV, stopped giving me referrals, or went into
competition with me. The exceptions are a good friends. Some lessons
learned: PV attracts lone wolves who, by nature, are competitive and nurture
trustworthy friendships.

Joel Davidson

"Cultivate your garden." Voltaire

----- Original Message ----- 

From: Jeff Yago <mailto:jryago at netscape.com>  

To: RE-wrenches <mailto:re-wrenches at lists.re-wrenches.org>  

Sent: Thursday, January 29, 2009 8:38 PM

Subject: Re: [RE-wrenches] general contractors taking a cut...

We have tried this before but never seems to work out, although we have
worked with several general contractors or architects to coordinate a solar
installation the owner purchased direct from us and we had to install during
construction.

Here is what usually happens - The contractor says, give us a good deal and
we can sell your systems in almost every house we sell.  Then they pick your
brains, learn all your installation tricks, and you are left out in the
cold.   If they are on the up and up, they usually do realize the new
homeowner will never be able to add another 25% to their loan to add the
solar, so they never sell any systems as part of new construction.  

My best advice is to advise the homeowner what empty conduit to ask their
builder to install before enclosing the walls and give you a call if they
want to purchase a system direct from you now or later.

A typical new home has a general contractor, who hires a back-hoe operator
to clear the lot and install the footers, a block layer to lay the
foundation or fireplace block, stone, a carpenter to frame the walls, or
brick a plumber to install the plumbing, a roofer to install the roofing, a
drywall contractor to install the drywall, a painting contractor to paint,
an audio/video service to run the phone and video wiring, a kitchen
specialist to design and install the kitchen and bath cabinets, a
counter-top contractor to cut and install the counter-tops, a trip carpenter
to install doors, windows, and baseboard trim, and a flooring contractor to
install the wood floors and carpet,.  

So what is so different that a contractor can't contract with you to design
and install a solar system if the client wants one?  You can always market
to the public in your area to create the demand, and sooner or later the
contractors will see its good business to team up with you when they need
you.  Leave some brochures in his sales office and tell him he can mention
he works with a good local solar installer if they want lower utility bills.
This might help him sell more homes without you having to keep buying cases
of Scotch.

Yago Rule # 36 - Beware of general contractors bearing gifts.

  _____  

Netscape.  Just the Net You Need.

  _____  

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