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Mar
11
2011

Where’s Waldo? Recognizing the signs

Posted by in Contractor Factoring, General Information

The stair tower had 20 sets of stairs… 175’ straight up, a true heartbreaker when you realize you forgot the camera in the trailer! I will admit I could feel the “burn” but it didn’t match how hot I got seeing a 6 man crew standing around because they were out of supplies! This sub-contractor was under contract and who was he really hurting but himself? Let’s see: How about my completion date (?), anyone considering the timeline of the trades following this rebuild? What quality controls will suffer from the “hurry up and wait” workflow; not to mention the strain on the relationship between me and the foreman who would have to pass the bad news about the next delay from a lack of materials?

So the signs of a stumbling sub-contractor are identified, a hands off approach could be disastrous to the success of the completion date. Is the sub-contractor unorganized, unaware, unqualified, or underfunded?

The phrase “dumb as a fox” comes to mind. Juggling funds and manpower happens in the best of times and especially in the worst of times. When A/R is out 60/90/120 days, how are subs supposed to satisfy all the cash flow needs?

Our RMS Contractor Funding program solves that problem. On approved government construction projects, job funds go to pay only job costs identified for that particular job. The sub contractor participates by directing who gets paid and when, but all disbursements are administered through our RMS group. This funds control method helps assure the owner and the GC job funds are available for only job materials, job payroll, and job costs.

Now to circle back to identifying the signs of a distressed sub-contractor: being unorganized, unaware, unqualified… Well we both know my opinion needs more space and time than we should invest right now, but maybe we can revisit these in another blog!

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