Any contractor/builder in the house? LONGGGG

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Dario

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Austin, TX, USA.
Crossroads...
.
.
...I am on one and might have to make a choice soon.

(This is a post I did elsewhere and finally had the guts to ask you guys)

I am cozy with my current job as a programmer/analyst (been here for the past 9 years)...but I am not moving up. Until late last year I never got a promotion and when I attempted to leave, they gave me one. It is not the best but it provides a steady, sufficient income.
For years my family (in-laws side) have been planning on starting our own construction business. Just a small one and basically mananging sub-contractors. Being the only one with construction background I am tasked to run it (if I accept) or maybe they thought of this for me (the cart and the horse thing). All I know is they are looking after our welfare but I am a bit overwhelmed being out of the construction arena for the past 9 years.

I don't even know current pricing now especially that the location (my experience is in Guam US Navy facilities). Another field I am leary with is the contracts side. I've attended way too many meetings/negotiations with customers presenting arguments for change orders (and the like) and know one small "hole" can make or break a contract finance wise.

I feel like a total newbie. Anyone have anything to share? Best software to get/buy, etc.

BTW, I have a fall back in case this won't work. I am being courted by another architectural firm here for years now to move to them and offered me almost 50% increase of my current salary. If not for our business plan, I would have jumped but I don't want to stay with them only for a few months though it would have given me the much needed exposure. I just felt it will be unfair for them.

Thank you for any help.
 
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(a reply to posts I made on the thread from another forum...in case this helps)

A bit of intro about my construction experience. I worked as estimator primarily doing qty take off but pricing was left to our chief engineer and they guard it well until the bid is over so I am not much on that arena. I also did a few years as a cost and scheduling engineer then as a project engineer on various Naval base projects from Breakwater (sea wall), wastewater treatment plants, hazardous material storage facility, missile storage facility, multiple housing, power plant, child care facility, etc.

When I left the company, I became a quality control inspector and did some construction management job. I also handled a few government projects including the Governors House repair which is a bit different since I have to use DOC inmates on work-release program. I also built a school and a federal prison as well as repaired an old one.

I know about the work time. Also very aware of OSHA and potential fines. Believe ot or not, they (and EPA) are much more strict in Guam than here. One company got hit with the record breaking fine while building the Guam Int'l Airport for (I believe) a whopping $430 million dollars. I do believe it was negotiated down but don't know to how much. I know that repeat vilolation fine is exponential. A hardhat violation then was $50 the first offense, I think that goes to $300 the next, etc and it is not limited on a jobsite or a company (companies under a big umbrella corporation is considered as one).

I am looking at the local requirements now and will see if it will work. Our target is commercial buildings.

Re: answering questions on site...I have some knowledge but will never answer anything I am not sure of. Yes, I will ask the designer if I don't know that answer and that is normal (SOP actually). Depending on what is asked, I was actually taught NEVER to give an answer even if I know it. The designer (A&E) are ultimately responsible for the building/structure...any alteration/deviation from the design relieves them (some) of that responsibility. Sorry but I am not willing to take that. IF the question is just a verification from the specs or plans then yes I will do it. Design alteration is a no-no and some sneaky subs will do that by asking an "innocent" question. I hope this helps you understand why some engineers appear to know nothing (some really don't though ) and have to get back to you the following day.

I am strict but fair...if I paid for something it better be delivered as agreed on. Sadly, money is sometimes the biggest motivation for most...and I am going to use it if I have to. I never withheld payment from anyone who performed their job though.

Re: my in-laws...I don't see any problems with them. If anything I am afraid of failure just because I don't want them getting disappointed. As I said...I believe they are doing this more for me and my family.

If ever, our initial projects will be family building investments. We did a trial run the past year building a $1 million clinic w/ 2 rental suites (a pharmacy and a gym/rehab center) with me acting as owners represenatative and it went well. We also have a backup plan if this one fails...both are geared towards "independence" .

Again nothing is final but it is nice to explore the possibilities. It gives me a mixed feeling right now excitement and fear but as they said..no guts no glory.
 
Dario
After being in the computer field for 20 years. My job went oversea 6 years ago. I went into the design field for kitchens and offices. Last year when the housing market began to slow down the company I was with began laying off people. Since I was with the company for only 1 year I was one of the employees layed off.
I since started my own company. I now make pens for upscale retail stores and also commission projects.
Even though the money has been slow coming in, I have never been happier.

You and only you will have to decide to make that leap. Just let that fear work for you. It just makes you perform even better. There is nothing better then working for yourself. Also make sure your wife is fully commited with your decision. I know I could not be where I am today without my wife's support.

Good luck with your decision.
 
Dario,

From my experience, you don't own a business, it owns you! There is a lot to be said for a stable job with benefits that you can leave and not spend your weekends worrying about.

FWIW,
 
Working for yourself gives a whole new meaning to---overtime.
There are so many pro's and con's to this that you are really the only one that can decide.
 
I would go to work for the company that offered the 50% increase in salary and work on the construction side as a consultant. This way if it doesn't work out or you get too far over your head, you have no loss of income. You and your immediate family comes first, the rest of the family gets in line.
 
Dario,
By your description it appears that your family will open a company that will be a General Contractor. Tell me what part of the country and will it be commercial or residential.
 
Ron, Yes it is for a GC and if ever, it will be based at Edinburg, TX. We will be shooting for commercial facilities...and as I said, will start off with our own projects first.

Thanks guys, keep it coming. I am listening.
 
Dario, in the short time I've been involved in the IAP, I've come to look up to you immensly. You seem to me an honest, hard-working, and caring person, fairly level-headed, and have seen you on a couple of occasions act as a peacemaker when things were taking a bad turn. While I can offer no specific advice as regards contracting, I urge you to go with your gut feeling, and listen to your heart and mind--they won't steer you astray. And whatever your decision, I wish you the absolute BEST of fortune!
 
You will regret not having the experience of operating a business. That being said my only words of advice are it is relatively easy to find a job but very difficult to have a job you truly enjoy. You won't know until you try.
 
Hi Dario. Sounds like you have a hard decision to make. You have to ask yourself a few things first of all. First, what do you WANT to do? Do you want to be a programmer, or do you want to be a GC? If you like programming and the work you do, take the 50% increase. If you are a bored programmer and the thought of learning a totally new system at a new place scares you, then maybe switching careers is a good thing to consider. Also, will you be making the same money as before, or less?

Lots to consider, hope this helps,
Wade in MN (and under a ton of snow)
 
Shannon, Thanks [:I]

Dave (?), Exactly what my brother in law said. I was told that I am wasting my potential.

Wade, The 50% increase is for an Engineering (Construction Management) job. Both have advantages but I think I prefer the dynamic nature of the job site than the boring desk job. Re: GC salary...there is none. I make my own and it could be nothing or no limit. I am guaranteed to make at least 3 years equivalent of my current salary the next 12 months...but after that, who knows[?] THAT!!! is the scary part [:(]
 
Well, sounds like you know what you want to do already. If you take the job with your inlaws and you are guarantee to make 3x your annual salary, you make the decision to live on what you currently make, and bank the rest (the 2 years worth). Then, you have something to fall back on if the 12-36 months isn't all that great. And if the 12-36 month person starts booming as quickly, well, you have a heck of a down payment on a new toy, house, car, workshop... whatever....

Anyway, my .02, hope it helps,
Wade
 
Originally posted by Dario
<br />I am guaranteed to make at least 3 years equivalent of my current salary the next 12 months...but after that, who knows[?] THAT!!! is the scary part [:(]
Click to expand...

Is this a trick question? Your current job doesn't reward you. The GC job will pay you 3X your current salaray for the next year. Uh...try it for a year and see how it works. Your value as a programmer will not deteriorate over 12 months and you may set yourself up with a great opportunity. You're still young... a lot younger than me... and I'd jump at the chance!
 
Wade & Lou,

Not a trick question. I know it may look straight forward and I do see it at times but being the one on the spot, I am a bit confused (maybe blinded even).

Note that I've never been out of work since I graduated. I am not a risk taker and it is not my nature. I have 3 kids...2 are in high school and 1 will start pre-kinder in a few months. I am afraid for them and yet this may actually help me provide a much better future for them.

I guess I really need to suck it up and charge forward on this. I'll finalize my decision hopefully in a month.

Thanks!
 
If you will make 3x your annual in the first year and you save 1/3 of it in an interest bearing account or something similar, you are safe for 2 years which is plenty of time to find something else if the GC doesn't pan out for you. Also note that tho I have done a lot of job hopping, my longest time between jobs when I got laid off was 8 workdays. Trust me, I don't take risks either, but at the same time, I don't consider taking a safe chance a major risk either. And from what you are saying, you have a MAJOR safe chance. Besides, you'd get out of the "desk job" situation.

Personally, i'd jump at it. My problem is that my entire experience is as a computer programmer, and, while I can do other things, i'd take a huge cut if I did so. Plus, I have been into computers for all but 10 years of my life (got into them at 10 and i'm 34 now) and while they may be aggrivating, I still enjoying working on them.

Wade
 
OK, now that the 3x equation popped up, I say go for it. At first the 50% and safe job looked great, but triple is even better. Plus, you can alwasy move if the business doesn't work out as there is a need everywhere for commercial GCs who know what they are doing.
 
"To those who tried it...do you think it is worth buying from him or are there better alternatives?"

Dario you should not be going into Business your calling is obviously in Politics!
 
Dario,

Give me a shout some time if you want to talk further. As you should remember, I own my own custom home building business so I do have a lot of suggestions and advice for you if you want it. It would be easier to talk by phone, though.
 
Dario,whatever you decide, it must be YOUR choice.

I have absolutely no doubt that you love your family dearly, but if I was in the same predicement I would answer that I love my family too much to risk going into business with them.

Good luck, I'm sure YOU will make the correct decision for YOU.
 
Skiprat, good point. If my wife and I worked in the same business together, we'd probably kill each other. We love each other dearly, but we both have different ideas on how to run a business, and they definately don't agree!

Wade
 
My experience... I've owned my own business, and worked for others. I work for someone else now, primarily because I have one boss instead of 10 or 15 (customers), I get to keep more money after taxes (50% or more went to Uncle/State from my business), I can walk down the hall in my home without seeing my office and feeling I should work. I work 45-50 hours per week now instead of 70-80 when I owned a business, and I didn't miss the last half of my kids growing up (read between those lines). I have better benefits working for someone else, paid vacation and I have a real life. You can keep the business owner deal.... IMHO
 
Well Dario l think the fear stops most people having a go, l don't think some people like getting out of there comfort zone.what l think Dario if its on your mind 24/7 you have done the study your family backing you up throw away the (fear) have trust in your self that you can do it' and do it well. [^]
 
Originally posted by thewishman
<br />Dario, what does your wife think?
Click to expand...

She thinks we should go for it but still praying for guidance.

They were though from the very beginning to (if possible) choose a carrer that they can turn into an independent business if they have/want to. My in-laws have the inteprenural (sp?) spirit.

Though she passed her first USMLE exam, she still have a couple to go before she can start her residency. All of that can happen in a year though so maybe it will be all good. Our original target was ideally to start AFTER she started working.
 
Dario,
You have a great opportunity, but my dear old saintly mother, always said be careful doing business with family.... how well do you get along with your in-laws.. what happens if the business doesn't do well... are they going to look at you as the cause of failure?

I had my own business for a short time, it was started at a time when there was a slight downturn in the economy and we had money backers.. it was a lot of work, a lot of headaches and I enjoyed being a part of it, but ultimately it cost me a great deal of money and some hard feelings from our investors because 1. they didn't understand the business, 2. they were expecting to make a lot of money, even though they were told up front it would take 2-3 years before we could be assured of getting a return on their money.

I don't mean to be a downer.. but look hard, decide what will work best for you and your family.. they ultimately come first... then give it your best shot.

BEST OF LUCK TO YOU.
 
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