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

Mon Feb 2 19:49:46 PST 2009

I second Peters advice on the pre-leins - I'm surprised how many subs don't
pre-lein projects......

-----Original Message-----
From: re-wrenches-bounces at lists.re-wrenches.org
[mailto:re-wrenches-bounces at lists.re-wrenches.org] On Behalf Of Peter
Parrish
Sent: Monday, February 02, 2009 2:47 PM
To: 'RE-wrenches'
Subject: Re: [RE-wrenches] general contractors taking a cut...

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 

________________________________

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

________________________________

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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