A contractor with a $6M roofing job faces payment delays of 30 to 90 days plus 10-15% retainage held for a year, which strangles cash flow. He'd rather do 15-20 bathroom remodels a week than one big project that locks up his money for months.
And I think the worst part for us is you've got all this money out there, expenses, labor, material costs. And, you know, sometimes people are holding back a lot of money because sometimes your payment terms are 30, 60, 90 days and then they do retainage. So I think in our peak, we did a $6 million roofing job and siding job, which sounds very good, but if, if you're not getting paid for 90 days and they hold 10 to 15% retainage for a year until it's all the other trades are done, it can really affect your cash flow. So we're at the point where I'd rather go out and get 15 or 20 one-day baths in a week and offset a whole house remodel that would take 4 months to do.
