So, I am in construction sales, primarily insurance restoration projects (hail/wind/hurricane). I do subcontract PM and sales for a local GC in my area, before that a national exterior restoration company. Been in the business almost 11 years.
Due to a perfect alignment of circumstances, I will literally make a million dollars this year. People have been up my ass about going out on my own for a couple years now. What's held me back is this:
>I fucking hate actually doing the labor side
It's literally the last thing I would want to do. I know how it should be done. I know the required materials to get it done. I know if someone is fucking up during the doing. I just don't want to do it. And my lack of want to do the work has been my primary barrier to entry. My mantra is that as the contractor, I am ultimately responsible for all my installs. If there's no sub to do a repair or fix their mistakes (as happens fucking often), I'm the one that is ultimately responsible to go out and fix it. That's not me at all. My specialty is sales, coordination, claims negotiation, etc.. So, I never really considered playing contractor until now because the situation has changed.
>cont.
Should I Become a Contractor?
One of our metal roof subs and I have been talking for a while now. He's a fucking amazing standing seam metal guy, literally one of the best I have ever seen. He runs most of his installs off contractor owned metal panel machines. Its way cheaper than buying prefab snaplock panels, but the logistics are way more complicated.
>GC orders trim coil for delivery to their office
>GC orders matching flatsheets to be delivered to metal fabrication for trim (wave/rake/headwall/sidewall/ridgecap)
>GC orders accessories sometimes from someone completely different (screws/rivets) for delivery to office
>Sub loads panel machine, let's say a 2 coil unit, at GC office
>GC either has to have a forklift or rent a 4k because coil rolls weigh 2000+ lbs.
>Sub or GC pulls panel machine to job
>Sub or GC has to pick-up trim from fabrication and bring to job
>Sub runs all the coil into standing seam panels
>Roof is over 60 SQ, so has to pull machine back, re-load coil at GC office, pull back to jobsite
>Fabricator fucks up the kick on the drip or doesn't fab enough whatever and it's 2 weeks before sub can finish
>Gutters had to come down to install drip edge, so now bitchy homeowner and potential problems because gutter sub has to wait until roof is done to run new gutters
>Can't just out old gutters back because invariably gets fucked up no matter how careful
You can see how this is a monster pain in the ass. The GC could have a guy to load and run the machine, but I have yet to see one that does. Sub rate for labor for this bullshit is usually 2.60 - 3.50.
I have a different way.
I go into business with my sub. He already has 10 installers. 2 out of those 10 can run the panel machine correctly and are able to supervise jobs. The split would be 70/30 to me. Reason for that is I would supply all the equipment and start-up capital. My vision goes like this:
>My company does the detail
>Coil trim is delivered directly to jobsite
>Flat sheets and accessories delivered to jobsite
>My company rents a 4k lift at the jobsite for a day
>Use that 4k to load my own panel machine
>Have own calibrated brake on site to field fabricate all metal trim components
>Jobs are done faster because no bullshit running around
>Contractor literally doesn't have to do shit but order the coil, but I could even do that and negotiate a better price
>Instead of waiting for a gutter sub to come after the roof is finished, I would use my machine and guys to run them and install as soon as the roof is done.
For this, I would charge 6.00-7.00 per SF. It's more than double the current going rate for metal in the area, but hidden costs of Iogistics often put the final cost above that. Plus, they don't do shit besides sell the job. Contractor profit margin would still be acceptable, as standing seam usually goes for 9-12 per SF retail. I could even offer insurance supplement services for an extra fee to boost their bottom line further.
>cont.
Why this seems like a good idea:
>I have to spend this money on something or give it to Uncle Sam
>There are very few actual skilled metal installers, and I know the very best
>There is a big demand for metal from hailstorms and new construction in my area. Hailstorm alone is another 2 years worth of work from right from last year's hail
>I can sell our services to a whole shitload of contractors because of the demand
>My guy already works for some of the biggest in the state
>There are 6 panel machines owned by 3 different contractors in a 60 mile radius of me. Mine would be the only one owned by a sub
>Every contractor goes through the same logistics nightmare because they are too busy to be running just one panel machine
I also want to do gutters too. Apparently, you can make 50% profit as a sub. For some reason, every gutter company within a 100 mile radius is either total shit, flaky as fuck, or a mix of both. Our gutter sub worked for 3 of the largest contractors in the area besides us, and managed to stay employed despite being fucking terrible. Just doing a mediocre job here would make you the best in the area. Plus, it's a good fit for the roofing side and less coordination on the contractors part. I would want two 5/6" combo machines and maybe even a 7" seamless box machine (I would have one of 3 in the whole state).
I figure for 2 box trucks, a few brakes, tools, ladders, a top model panel machine with all 11 dies, 2 combo k-style machines, and a 7' box machine would run around 170k all in. I have a ability to get my own license, and would plan on only running sub business until I get my own thing going. My metal guy was the missing piece: the dude to do the work. He talked about salary, but I wanted him to have 30% (even though I would funding everything). His knowledge and crew bring value in my opinion, and I want him to have actual skin in the game.
>So, know that you've read my blog, is this a fucking brilliant or terrible idea?
I think you know a lot more about this business than any of the dumbfucks here you are asking to spot check your plan.
Dude trades lmao
This.
this, and remarkably enough, finding methheads who can keep their shit together enough to work a contract through, then go back off the rails is the easy part. Harder is someone who actually knows their shit, but is happy taking a stepback and is competent to supervise methheads. Fuck giving anyone 30% of anything, put him on a GOOD bonus, and good fucking is. If he occasionally makes more than you, so fuck, your skin at risk, you'll still own that shit. And thats the way it stays. You already convinced yourself the rest, so, why you wasting further time on here ? G'Luck