Commercial Construction Payment Terms EXPLAINED.

[@ZanderCejka]

Love it!!

[@WallStreetBeggar]

Your video is great! We price in interest during the estimating phase. Our overhead includes loss of interest on the money we project we have to float for the billing duration when the project's still in estimating. Commercial construction is profitable, but we also negotiate payment structure where we do mark it up or down based on payment terms. Even some govt projects where it's big enough, we were able to talk to our CORs to negotiate a bi-weekly payapp because the cash flow required prevents us from stacking subs. It never makes sense to eat the loss on interest on money you float to someone else. I personally would rather not do the project if the margins including loss on interest is not there. Let some other suckers take the loss on it because at that rate you're better off working a hourly gig for someone else. It never makes sense to lose money on interest just to pay yourself a market rate wage.

[@Sy-Con]

You bring up some great points my guy! Thank you for taking the time to comment! This was a very general overview for the fellas in the comments on our socials all wanting to jump into commercial… 😬 Your exactly right in that most of these phases carry much more in depth looks at what needs to transpire! Thanks for watching!