Project bidding is a major challenge for commercial construction subcontractors in the United States. Estimating a bid involves a lot of hard work, research, and thoughtful planning. In its most basic form, a bid is the sum of estimated project costs, overhead expenses, and net profit margin. Click here to read our guide to calculating… Read more »
Category: Construction Loans
It may not seem like it, but when your subcontracting business performs work on a job prior to being paid, you are essentially extending credit to general contractors and property owners. Lien rights in the United States are your security and protect your commercial construction business so that you can get paid for your work…. Read more »
There are many ways to distinguish between different types of construction projects. For many businesses, especially when looking for a construction loan, it is important to understand the difference – and the grey areas – between two types of projects: Commercial Construction and Residential Construction.
Securing a commercial construction loan can be an arduous process if you aren’t prepared for it. There are multiple options for businesses looking for commercial construction financing, including contract financing, factoring, merchant cash advance/daily debit and SBA loans, but there is no standard set of requirements for what you need in order to apply.
A common commercial construction billing mistake companies tend to make is to delay submitting an invoice or pay application for the work completed during slow months. Construction companies, in most situations, have work schedules that ebb and flow as their jobs progress. Busy and slow months are inevitable. Federal holidays and poor weather conditions often… Read more »
Commercial construction contractors are in an almost impossible situation. The economy is booming, and public and private organizations are looking to build new offices, hotels, skyscrapers and more. But to make all that happen, organizations — and the general contractors they hire — depend on thousands of subcontractors who are willing and able to do… Read more »
There are many factors behind landing a winning bid. For upper-level commercial construction projects — especially for those lucrative government contracts — you have to prove that your company can complete the work for a competitive price and that you have the means to carry it through start to finish. A Financial Capability Letter can… Read more »
Commercial construction contract financing is a way for contractors and subcontractors to borrow dollars they need for the early stages of a particular job by using the value of their contract as collateral for the loan. Mobilization Funding, sometimes referred to as Mobilization Financing, is a commercial construction contract financing option for subcontractors who are… Read more »
Few commercial contractors have the luxury of paying the full up-front cost of a project without help along the way. But often, they wait too long to seek that additional funding, which can put unneeded stress on the project itself or even the business overall.
Construction projects are capital-intensive and, unlike the way in which many goods and services in the United States are bought or sold, the company undertaking the work delivers on the product before billing and months before receiving payment for its services. Due to the nature of the business model, as well as to the Great… Read more »