February 24, 2010
If there is one single item that hurts subcontractors and general contractors more than any other, it is waiting from 4 months to 12 months or more to get our retainage payment. In most cases, this 10% is our PROFIT, if we do things extremely well.
I want to start a national movement, right here, right now, to get state and federal legislation changed so that an owner cannot receive a Certificate of Occupancy until everyone has been paid. That is a fair and equitable request.
This issue reminds me of a story. An owner had a mason build him a chimney and fireplace. The job was complete and the mason told the owner not to build a fire in the fireplace until they had settled up on the money. The owner was not patient and went ahead and built a fire in the fireplace and the house completely filled with smoke and caused a lot of smoke damage.
The owner called the mason and was irate that he had built a chimney and fireplace that would not “draw”. The mason told him there was nothing wrong with what he had built. He told him to pay him his money and he would immediately fix the problem.
The owner paid and the mason went on the roof with a stone, dropped the stone down the chimney and there was a loud breaking sound. The mason had placed a flat piece of glass in the fourth course of the stones as his payment insurance. When the glass was broken, the fireplace worked perfectly.
We need our piece of glass in the chimney to get our money. No Certificate of Occupancy prior to payment can be our glass.
“United we stand, divided we fall” was true in Aesop’s era and it is still true today. So, subcontractors and general contractors, unite and let’s make a difference working together.
That is it for this week. Post your comments on the Blog and let us stimulate the discussion.
Thanks,
Ted S. Miller