# How to get out of a bid approval due to lack of funds



## AFSreo (Mar 19, 2015)

We placed a bid on a property for five sisters and came back approved. The approved amount was for 15k and we called our state regarding a deposit as its over 10k an was just told to do the work and we can try to see if a deposit can me made after you start the work. Due to our 5 month time frame and slow volume in training we haven't received enough funding to support this job. We though client would advance partial payment to start. How do we get out of this order and can it be back charge as this was our bid?? Any advice would be appreciate, we our at a lose for words,


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## newreo (May 30, 2014)

AFSreo said:


> We placed a bid on a property for five sisters and came back approved. The approved amount was for 15k and we called our state regarding a deposit as its over 10k an was just told to do the work and we can try to see if a deposit can me made after you start the work. Due to our 5 month time frame and slow volume in training we haven't received enough funding to support this job. We though client would advance partial payment to start. How do we get out of this order and can it be back charge as this was our bid?? Any advice would be appreciate, we our at a lose for words,


Tell them to pay you installments if they want to see this job completed. Also tell them that you will need to have a final payment sooner rather than later. We had times when we had large amounts outstanding, I asked for expedite payments. Also, another option for you paying to your guys with business checks from the CC, they often send promo checks with no interest on those. I would not deny job just yet, but would try to negotiate payments options with the management. 15,000 should take two weeks to complete. if they pay you installments and promise quick final payment, it should be fine.


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## Wannabe (Oct 1, 2012)

I'd pull the permits THEN tell them you have the Permit IN YOUR COMPANY NAME and ask for advance. Technically you started the project and IF someone else starts the project besides you the building department will scream. 

Helps prevent them going around you and issuing a chargeback.


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## Craigslist Hack (Jun 14, 2012)

Wannabe said:


> I'd pull the permits THEN tell them you have the Permit IN YOUR COMPANY NAME and ask for advance. Technically you started the project and IF someone else starts the project besides you the building department will scream.
> 
> Helps prevent them going around you and issuing a chargeback.


I had a Demo crew go belly up after pulling a permit for a job once and it was nearly impossible to get a second demo permit for the next crew.


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## newreo (May 30, 2014)

Wannabe said:


> I'd pull the permits THEN tell them you have the Permit IN YOUR COMPANY NAME and ask for advance. Technically you started the project and IF someone else starts the project besides you the building department will scream.
> 
> Helps prevent them going around you and issuing a chargeback.


Or this, I just very hesitant with the permits. You just never know how it all end up going. We had huge repairs stalled because of the permits and city involvement. So I personally think twice before doing it, but if there is no risk of any delays, caused by city or if permit is absolutely must - then this is a way to go.


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## Ohnojim (Mar 25, 2013)

*Isn't stalling exactly what you need right now?*



newreo said:


> Or this, I just very hesitant with the permits. You just never know how it all end up going. We had huge repairs stalled because of the permits and city involvement. So I personally think twice before doing it, but if there is no risk of any delays, caused by city or if permit is absolutely must - then this is a way to go.


I'm not sure if I understand your position exactly, but having money issues, you probably don't want to turn down a 15,000 job it it's bid well, and you don't have the cash to rush through it. It seems to me stalling is your best option. Make some cash in the meantime, the prime season is just starting. Apply for the permits, see if you can hold up the process, "spike" the job by tearing something apart, or nailing something up, warning sighs, caution tape whatever use your imagination. Do enough to get some pictures and some cash out of 5bros. as you get some cash, then knock it out when you get your deposit or other cash. 

Of course it it's not a cash flow problem, and you're just broke. That's something else.


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## Craigslist Hack (Jun 14, 2012)

Does 5 Brothers do money up front for orders over 5k like most nationals? 

How can they force a guy to take a job that might put him out of business?

I see no legal way this can happen.


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## JDRM (Apr 16, 2012)

It should of been requested and documented with bid.


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## newreo (May 30, 2014)

Ohnojim said:


> newreo said:
> 
> 
> > Or this, I just very hesitant with the permits. You just never know how it all end up going. We had huge repairs stalled because of the permits and city involvement. So I personally think twice before doing it, but if there is no risk of any delays, caused by city or if permit is absolutely must - then this is a way to go.
> ...


I personally don't have question about this repair if you we're advising me. The problem with stalled jobs is when they get stalled at the end and I am not getting payed whereas I am paaying everyone else. Normally it happens at the end when city comes up with something code related which prevents closing permit. Then we wait for additional funds forever, permits expiring, subs pissed and we pay everyone and my bank accounts suffer, so when we can we avoid peemits or I don't start until I know we have everything in to close them. You know how that is with hud and code compliance. Its all very painful. Not proposing not ta pull them, just keep in mind the possibity.


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## AFSreo (Mar 19, 2015)

*re: How to get out of a bid*

I'd like to thank everyone for there post. I have expressed to 5 bros to place the work order on hold until a payment arrangement can be made. Now there response is more in regards to higher management level to see about funding. Yet i'm still being told I will be back charge if we don't complete the work because it was our original bid but yet they reassigned it to another contractor who has now a wk later rejected it. Since this order changed hands our we still on the hook for completing this order? and why can you reject some work orders and have to accept some others. This just sounds odd to me. Will post my out come so if anyone else out there has the same snag hopefully this will help.


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## PPArt (Jun 3, 2014)

I believe you can reject all orders except bid approvals.


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## BPWY (Apr 12, 2012)

AFSreo said:


> We placed a bid on a property for five sisters and came back approved. The approved amount was for 15k and we called our state regarding a deposit as its over 10k an was just told to do the work and we can try to see if a deposit can me made after you start the work. Due to our 5 month time frame and slow volume in training we haven't received enough funding to support this job. We though client would advance partial payment to start. How do we get out of this order and can it be back charge as this was our bid?? Any advice would be appreciate, we our at a lose for words,





AFSreo said:


> I'd like to thank everyone for there post. I have expressed to 5 bros to place the work order on hold until a payment arrangement can be made. Now there response is more in regards to higher management level to see about funding. Yet i'm still being told I will be back charge if we don't complete the work because it was our original bid but yet they reassigned it to another contractor who has now a wk later rejected it. Since this order changed hands our we still on the hook for completing this order? and why can you reject some work orders and have to accept some others. This just sounds odd to me. Will post my out come so if anyone else out there has the same snag hopefully this will help.





If you are willing for this to be the end of the road with them tell em to pound sand. 

Unless they have a substantial amount of money owed to you for previous work their threats of back charges are laughable. 

Otherwise all you can do is try to negotiate earlier payment or a deposit or some thing. 

Let this be a learning experience to put your request for a deposit in with the original bid. 
After getting burned one time too many on slooooow pays I started putting in my bids when ever I had one over $2000 that 50% down was required.


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## Framer1901 (Nov 2, 2013)

You should be prepared to complete any job in this industry for charity unless you have had a great 100% on time paid relationship with the vendor.

Sigma and MCB are the only two companies I'd ever do any job for at any cost knowing I'd be paid 100% and within their pay schedule.


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