CM1995
Administrator
- Joined
- Jan 21, 2007
- Messages
- 14,029
- Location
- Alabama
- Occupation
- Running what I brung and taking what I win
No, they do not run company logging crews anymore. As a matter of fact the one harvest manager that was 100% for this to happen was the one who was head of company crews when they had them.
The way I explained it to him in our meeting was you take a highway contractor, if they have a project they get generally 25% of the contract price up front and then construction draws as they go. Same as a home builder, etc.
Loggers are the only ones that are dumb enough to do the work first and front all of the cost waiting for it to trickle in afterwards.
I told them that I wasn't going to operate that way anymore. I'm going to operate as a contractor on any large scale project would.
We do not get any money upfront in the commercial world. Billing is done every month on the 20th or 25th then wait 30 days at the earliest for a check. Sometimes it gets drug out to 45-60 days. Industrial construction can go 90-120 days.
Worst situation is starting a job at the end of the month then bill next month and wait for 30 days if you are lucky. So 60 days out on pay in that situation.
Retention of 5-10% is held on each pay request to be paid at the end - eventually. We are waiting on retention on a school project that was final'd out and occupied in November of last year.
Lumber prices being where they are is the reason the wife and I getting ready to start our house.