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Trying to break free from being a sub contractor to contractor?

We are a small construction firm, and we are trying to break free of the sub contracting role and get contracts in our own right, we have the labour skills necessary and the drive, but I fear a lack of knowledge in contracts etc is a downfall, also we are conscious of not stepping on anyone's toes as to speak.

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Prime contracting is not that much different than subcontracting. In your role as a sub you must have dealt with terms and conditions, delivery schedules, customer relations and work scope management.

The role of a prime is simply on a broader plane and includes coordination efforts directly with the prime customer and among the subs. http://www.smalltofeds.com/2009/05/small-business-teamiing-in-government.html

Report Kenneth's answer

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Thank you Kenneth, yes I think if I keep that frame of mind that its just on a larger scale .

Report Stacey's answer

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Can you start small? Do you have any strong relations with any existing primes that you sub to? If so, are there any contracts they are turning away that they would suit your business? Also, as a prime, if you are working on larger projects and contracting in subs then do bear in mind the additional responsibilities of cash flow and budgeting, their dependancy on you and your dependancy on being paid promptly by the client.

Report MM's answer

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As stated above, it is not that much different, especially if will dealing with larger companies, most contract clauses are copy and pasted from one contract to the next and you only need to pay attention to a few key paragraphs (until you get your feet wet it never hurts to run past unfamiliar contracts/terms with a law firm that has experiences with them, and as they say if you can't afford that then you definitely can't afford not to.) The real difference is the risk and reward, as you get into larger contracts you will take more reward for more risk, please be mindful of what tasks have to be completed to be paid, and make sure someone with operations experience goes over and understands the implications, also be aware that if there is a delay in payment due to uncompleted tasks that your company has the cash flow to meet all its commitments.

Report Eric's answer

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En mi experiencia como administrador lo importante al contratar, es el convenio del contrato de obra (debemos siempre leer los contratos y sus diferentes clausuras); Seguido el contrato debe estar evaluado por tu experto legal quien te representa como contratante; si tu empresa cumple con los deberes formales ante el gobierno eso está muy bien; antes de iniciar la obra debes tener firmada el acta de inicio para ejecutar y gozar del derecho del cobro de anticipo de obra. Es muy importante tener disponibilidad de presupuesto para contratar, esta debe estar acompañada de un 30% de capital circulante (Efectivo) y un 30% de capacidad de en tecnología (Maquinarias) así la empresa podrá soportar eventualidades administrativas y operativas. Stacey lo importante no es ser contratista o subcontratista de 1º categoría, en mi caso pienso que lo que importa es el convenio de la contratación y la utilidad que esta puede generar, aun considero que tu pregunta es muy válida ya que la responsabilidad que tú tienes con tu equipo es prioritaria…. Éxitos y espero haberte ayudado Andre

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