We started out 5 years ago in a community of 15,000 people installing cable for voice, phone, etc. along with phone systems. We left our employer to go on our own, and now all of a sudden our area is booming with new growth. New Home Depot, etc. We have been trying to get in with the new contractors to sell structured cabling. Our current employer who had 70% of the business in this town did not have a contractors license and we assumed (uh oh) that we did not need one. OK. We FINALLY have a BIG Contractor who agreed to our terms and then asked for our contractors license number. We set up for a school at the end of january, and can obtain it then, but in the mean time, they have a beautiful new huge open house they want us to install. We know 2 people with licenses that we have good repore with, and are in the process of working out a business agreement. What is the fair agreement for him and us. Anyone been in this situation? Many thanks for ideas.
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Selling structured wiring to contractors 1
- Thread starter mmmheyhey
- Start date
franklin97355
Technical User
Why not ask him what he expects from you? You don't have to give it but you should be in the ballpark.
Here in NJ you don't need schooling for low voltage. I would definately make sure the the sub contractor that you're going to use has insurance, and lists your company and the GC's on their policy. As for paying them, you can't expect to make a big profit, especially if their covering you for what you should already have. If it were me ,I would give them what I would be getting for the time worked. Your profits would come when you do the work.
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Unless you are dealing with a government agency of some type, (City, State, Municipality, Village, or Development Board), you shouldn't need a contractors liscence for low voltage installation of the private sector. Call your local state or city agency to ask about the low voltage requirements. Finding them online may be easier. I would guess you are going to have a hard time finding anything directly related to low voltage audio visual fiber optics or any related voice and data installation requirements. You will find plenty on Electrical. I think your contractor, if he is not dealing with a municipality of some kind, is mistaken about the requirements for your company. I wouldn't touch the opportunity of flying under another contractors wing on this one, unless your company is in need of work badly. Do the research on the requirements in your area and reapproach the big contractor with your information. Make him feel comfortable with your research and your previous work. Then take everything his got to give you. Leave the other guy out of the loop or you'll become dependant and lose profits.
franklin97355
Technical User
DennyM, you do here in Oregon. The rest of your post is good advice. He should check with the jurisdiction he plans to do business in for the final say.
DenneyM- Your first sentence is just incorrect- the laws vary from state to state. Many states (including mine,) require a low voltage contractors license. Here the requirement is based on the gross of the job- If you do any single project over $750.00, you need a contractors license. You would of course also need your state license for the business, and a separate tax license for each city you do business in.
the laws also vary from city to city where I work primarly no permit or licensee requirment for low voltage
two countys and and 40 miles north of me very restrictive low voltage requirements
a few other citys/countys in the state require licensse the bulk dont (at this point anyway )
two countys and and 40 miles north of me very restrictive low voltage requirements
a few other citys/countys in the state require licensse the bulk dont (at this point anyway )
- Thread starter
- #10
As always, thank you all for the help, I appreciate every reply! Denney your answer started me asking a lot of questions. The large contractor I spoke of has been in business here for many years, and it turns out that the company that installs their electric and alarm is the same owner that has called us out to terminate their data etc.. He is only asking for a percentage of the work performed until we get our license at the end of January. It is legal here to do so, and from the info of bkrike, I believe we live in the same state, as we can perform any work up to $750.00 without a license. (Hate to say we did a lot of jobs well over that amount without knowing we needed the license.) We have the business license, state tax etc., just not the contractors license. Saturday I received a call from a local electrician wanting to know if we had a license as he asked around town for references and our name came recommended for home automation. Our town is booming from the influx of California, and the license for electricians is different from low voltage, so we will all make a good living! Thanks again all.
Servamatic
IS-IT--Management
Since you mentioned CA and I use to be a contractor there, if you contract without a license in CA, the customer can refuse to pay you, and you have NO recourse, since you should not have been soliciting work in the first place. So certainly check carefully before contracting without a license, know the law in your area.
I know of one outfit that deliberately gave a job to an unlicensed company and then refused to pay them...all “legal” in CA. That was a job I bid at over 13,000. Hard lesson to learn. I have been out of CA for over 13 years, so I am assuming it hasn't changed.
Richard S. Anderson, RCDD
I know of one outfit that deliberately gave a job to an unlicensed company and then refused to pay them...all “legal” in CA. That was a job I bid at over 13,000. Hard lesson to learn. I have been out of CA for over 13 years, so I am assuming it hasn't changed.
Richard S. Anderson, RCDD
FYI for KY: Starting this year an elec. lic. is required for low voltage-life safety, and building automation-if there is voltage. Communications is still exempt (in a sense I wish it was included-I am trying to keep electricians from pulling data-they treat it like a door bell wire) and as far as I can learn that exempts POE too.
Why is there never a phone in the phone closet?
Why is there never a phone in the phone closet?
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