Full Transcript for Trades Trauma, Pricing Pressure, and the Real Cost of Building Right

emojis and stuff like that. 85 00:03:47,000 --> 00:03:47,719 Okay. 86 00:03:48,680 --> 00:03:49,719 I like him for that. 87 00:03:49,719 --> 00:03:51,799 Now there's another guy, Ricky and the boss. 88 00:03:51,799 --> 00:03:56,439 Now this is kind of interesting because it shows a dynamic of the nitty gritty of the shit 89 00:03:56,439 --> 00:04:07,245 that goes on where this guy has been head down ass up for six years or longer, doing what he's 90 00:04:07,245 --> 00:04:10,284 supposed to be doing, hoping that he's going to get a supervisory role, and then turns on. 91 00:04:10,284 --> 00:04:11,324 So it's kind of like a skit. 92 00:04:11,324 --> 00:04:12,685 It's kinda like satire. 93 00:04:14,039 --> 00:04:18,519 And he ends up and it ends up going to little Ricky that's been there for, like, six months 94 00:04:18,519 --> 00:04:20,040 or a year or whatever. 95 00:04:20,360 --> 00:04:27,319 And and he actually gets really quite jaded and speaks to his boss the way I think everybody 96 00:04:27,319 --> 00:04:28,865 would like to speak to their boss. 97 00:04:28,865 --> 00:04:31,985 It's kind of like a I wish I could talk to my boss this way. 98 00:04:32,225 --> 00:04:34,785 And is that the who always does, like, the weird face? 99 00:04:34,785 --> 00:04:36,464 He adjusts his face on his pose? 100 00:04:36,464 --> 00:04:37,345 I can't hear you. 101 00:04:37,904 --> 00:04:39,985 Is that the guy who adjusts his face all the time? 102 00:04:40,220 --> 00:04:41,100 Well, I don't know. 103 00:04:41,100 --> 00:04:41,819 It was working before. 104 00:04:42,139 --> 00:04:43,500 Hear you, and now I can't hear you. 105 00:04:43,500 --> 00:04:45,980 Fix it. 106 00:04:46,379 --> 00:04:47,180 What? 107 00:04:47,580 --> 00:04:48,460 Fix it. 108 00:04:48,540 --> 00:04:49,740 I can't hear you. 109 00:04:50,060 --> 00:04:51,259 Do believe that we're on recording? 110 00:04:53,824 --> 00:04:54,625 Come on. 111 00:04:55,264 --> 00:04:56,065 There you go. 112 00:04:56,225 --> 00:04:57,185 Oh, there you go. 113 00:04:57,185 --> 00:04:58,465 So I was just on you. 114 00:04:58,465 --> 00:04:59,264 I was just on you. 115 00:04:59,264 --> 00:05:00,384 Everything's showing up on here. 116 00:05:00,384 --> 00:05:00,865 So 117 00:05:01,185 --> 00:05:01,504 alright. 118 00:05:01,504 --> 00:05:01,745 Okay. 119 00:05:01,745 --> 00:05:04,705 But is it the guy it the guy that, like, modifies his face, like, gets the wide mouth 120 00:05:04,705 --> 00:05:05,585 thing when he's doing the conversation? 121 00:05:05,585 --> 00:05:05,985 Okay. 122 00:05:06,545 --> 00:05:07,345 I've I've seen that guy. 123 00:05:07,345 --> 00:05:07,425 Yeah. 124 00:05:08,000 --> 00:05:10,080 He does that sometimes, and other times he doesn't. 125 00:05:10,080 --> 00:05:11,600 Sometimes he doesn't really show his face at all. 126 00:05:11,600 --> 00:05:13,680 He just does the conversations over the phone with his boss. 127 00:05:13,680 --> 00:05:14,319 Have you seen that? 128 00:05:14,319 --> 00:05:14,800 Right. 129 00:05:15,279 --> 00:05:15,920 Yes. 130 00:05:16,160 --> 00:05:19,120 So I find it interesting because here's the thing. 131 00:05:19,120 --> 00:05:26,294 Inside of trades, both of them bring a lot of value of the bullshit that goes on inside of 132 00:05:26,294 --> 00:05:26,935 the trades. 133 00:05:27,175 --> 00:05:31,254 Like, the last one I saw for Josh fixes trades trauma. 134 00:05:31,814 --> 00:05:34,535 The last one I saw for him, I was like, fucking absolutely. 135 00:05:34,535 --> 00:05:36,935 I actually sent it to the other half and was like, this is you. 136 00:05:37,300 --> 00:05:39,220 And it's called the trades dad. 137 00:05:40,100 --> 00:05:40,259 Right? 138 00:05:40,259 --> 00:05:45,060 It's the guy that will basically, that's quiet, that does everything, that teaches people how 139 00:05:45,060 --> 00:05:50,514 to do things, that threatens to quit every Wednesday, but stays anyways. 140 00:05:50,595 --> 00:05:51,955 Today's the last day. 141 00:05:52,035 --> 00:05:53,555 I'm fucking out. 142 00:05:53,555 --> 00:05:54,355 I'm done with this. 143 00:05:54,355 --> 00:05:55,394 I'm done with this. 144 00:05:55,394 --> 00:05:57,154 He goes back to the next day. 145 00:05:57,154 --> 00:05:57,314 Yeah. 146 00:05:57,314 --> 00:05:58,355 See you tomorrow, Jim. 147 00:05:59,875 --> 00:06:04,194 Which is funny because I get to listen to a lot of the things that go on inside of new build 148 00:06:04,194 --> 00:06:04,754 because of him. 149 00:06:05,520 --> 00:06:06,000 Yep. 150 00:06:06,000 --> 00:06:08,960 And I kinda listen to you know, it's it's his perspective though. 151 00:06:08,960 --> 00:06:09,199 Right? 152 00:06:09,199 --> 00:06:14,399 Like, I can't take it as gospel because it's only his perspective and what his experiences 153 00:06:14,399 --> 00:06:14,800 are. 154 00:06:14,800 --> 00:06:20,115 So I have to be careful because a lot of times, I will go and ask other people inside of the 155 00:06:20,115 --> 00:06:24,354 new build space because I wanna make sure that it's not just he's just being, you know, a 156 00:06:24,354 --> 00:06:25,394 grumpy Gus. 157 00:06:25,794 --> 00:06:26,194 Right? 158 00:06:26,194 --> 00:06:26,834 Okay. 159 00:06:26,834 --> 00:06:28,354 Or a sensitive Sally. 160 00:06:28,995 --> 00:06:30,754 Because, you know, those are things. 161 00:06:31,154 --> 00:06:32,519 So and I do. 162 00:06:32,519 --> 00:06:34,120 And I gotta be honest with you. 163 00:06:35,720 --> 00:06:39,800 It's pretty bleak inside of new build and inside of the renovation space. 164 00:06:39,800 --> 00:06:42,839 Not quite as much inside the renovation space as it is in new build. 165 00:06:42,839 --> 00:06:44,279 New build is getting beat down. 166 00:06:44,279 --> 00:06:47,915 So here's something that's really interesting that I found when I'm listening to these 167 00:06:47,915 --> 00:06:52,395 different satires and and or actual issues that are going on, this the candor that's going on 168 00:06:52,395 -->

00:06:55,115 inside of of social media from these trades guys. 169 00:06:55,514 --> 00:07:00,395 And and this is something that myself and my other half talked about, you and I have talked 170 00:07:00,395 --> 00:07:05,579 about, And it's a very touchy topic because it is it's going to lean on the immigration 171 00:07:05,579 --> 00:07:06,379 aspect. 172 00:07:06,540 --> 00:07:13,259 So wouldn't go as far as to say it's the reason why immigration is a problem. 173 00:07:13,259 --> 00:07:18,654 What I would say is it's more of the cultural upbringing and belief systems that of some of 174 00:07:18,654 --> 00:07:21,694 the people that come over and immigrate into Canada. 175 00:07:22,334 --> 00:07:27,399 For me, is I'll give you a perfect example of something that we both have a similar issue or 176 00:07:27,399 --> 00:07:28,839 both have a similar view on. 177 00:07:29,879 --> 00:07:33,479 So right now, inside of the trades, framers are getting screwed over. 178 00:07:33,479 --> 00:07:40,865 There was a there was a time when framers were getting about 14 a square foot between fourteen 179 00:07:40,865 --> 00:07:42,064 and eleven a square foot. 180 00:07:42,064 --> 00:07:47,584 So 11 is kind of like the average, which is gross, because they should be making about 14 a 181 00:07:47,584 --> 00:07:48,384 square foot. 182 00:07:48,865 --> 00:07:54,899 And they're now getting beat down to between seven 10. 183 00:07:55,139 --> 00:07:55,540 Wow. 184 00:07:55,540 --> 00:07:57,460 $7 a square foot. 185 00:07:57,860 --> 00:08:03,860 And the reason being is because we've get we're getting these companies that are emerging that 186 00:08:03,860 --> 00:08:06,100 are multigenerational homes. 187 00:08:06,865 --> 00:08:12,225 And so everybody lives in the one house, and they're all making this $7, which is they're 188 00:08:12,225 --> 00:08:15,105 making a killing because they only have one mortgage to pay for. 189 00:08:15,345 --> 00:08:19,584 And everybody that's that lives in that house is all putting into that house. 190 00:08:19,824 --> 00:08:24,870 Whereas that we have the other, you know, I will say traditional Canadians where they are 191 00:08:24,870 --> 00:08:28,310 hiring people from different households and bringing them in. 192 00:08:28,310 --> 00:08:34,309 And so now they can't afford $10 a square foot in order to pay their guys and get everything 193 00:08:34,309 --> 00:08:34,789 figured out. 194 00:08:35,095 --> 00:08:37,335 You know, pay their overhead, all that jazz. 195 00:08:37,495 --> 00:08:42,294 So I'm like, why which and I'll tell you what I find interesting about it. 196 00:08:42,294 --> 00:08:44,534 These the people that are going, oh, yeah. 197 00:08:44,534 --> 00:08:46,294 We'll pay you $7 a square foot. 198 00:08:46,294 --> 00:08:46,934 No problem. 199 00:08:46,934 --> 00:08:47,575 These owners. 200 00:08:47,575 --> 00:08:51,610 They're the ones that are screaming about immigration, but they're capitalizing on it. 201 00:08:51,610 --> 00:08:52,250 Right. 202 00:08:52,570 --> 00:08:53,690 Do you know what I mean? 203 00:08:53,929 --> 00:08:54,409 Like, to me, 204 00:08:54,409 --> 00:08:55,610 it's like Tim Hortons problem. 205 00:08:55,610 --> 00:08:55,850 Right? 206 00:08:55,850 --> 00:08:57,209 It's the Tim Hortons problem. 207 00:08:58,649 --> 00:08:58,809 It's a 208 00:08:58,889 --> 00:08:59,529 Do you know? 209 00:08:59,690 --> 00:09:01,129 It's exactly the same thing. 210 00:09:01,370 --> 00:09:02,009 Okay. 211 00:09:02,009 --> 00:09:07,404 The Tim Hortons problem being that all the Tim Hortons are kind of ran by a certain culture? 212 00:09:07,644 --> 00:09:11,164 Well, and it was subsidies, like government subsidies and that type of stuff. 213 00:09:11,164 --> 00:09:13,565 And you're like, well, hang on. 214 00:09:13,565 --> 00:09:15,884 Did you really do best efforts for hiring? 215 00:09:15,884 --> 00:09:16,924 Did you really do that? 216 00:09:16,924 --> 00:09:18,044 I I don't know. 217 00:09:18,125 --> 00:09:18,605 I don't know. 218 00:09:18,605 --> 00:09:20,524 But just the fact that that even exists. 219 00:09:21,004 --> 00:09:21,245 Mhmm. 220 00:09:21,245 --> 00:09:21,485 Right? 221 00:09:21,759 --> 00:09:27,839 Again, it's people wanna talk about, you know, outcomes and that type of stuff, and and and, 222 00:09:28,000 --> 00:09:30,959 you know, equity and equality and all that. 223 00:09:30,959 --> 00:09:31,279 No. 224 00:09:31,279 --> 00:09:32,959 I think just your capability. 225 00:09:32,959 --> 00:09:36,159 Based on your capability, what you can do, go out produce it. 226 00:09:36,375 --> 00:09:36,695 Right? 227 00:09:36,695 --> 00:09:38,695 But, again, I'm I'm more of an entrepreneurial mindset. 228 00:09:38,695 --> 00:09:41,014 I don't really have the mindset to be an employee. 229 00:09:41,894 --> 00:09:42,215 Right? 230 00:09:42,215 --> 00:09:46,134 So to be an employee is a very different space, and I I feel for people like that because you 231 00:09:46,134 --> 00:09:50,934 can't get a job, right, when you're competing in a space where the company can't grow because 232 00:09:50,934 --> 00:09:54,600 they can't increase their profit margins because you do have people undercutting an 233 00:09:54,600 --> 00:09:58,919 industry, which has always happened with the I guess we call them scabs, the illegal 234 00:09:58,919 --> 00:09:59,559 companies. 235 00:09:59,799 --> 00:10:00,039 Mhmm. 236 00:10:00,039 --> 00:10:00,279 Right? 237 00:10:00,279 --> 00:10:04,125 But now you have legal companies who are willing to push it down because they're just 238 00:10:04,125 --> 00:10:05,805 like, we're doing it as a whole. 239 00:10:05,884 --> 00:10:10,045 Which I mean is is kind of fascinating in itself that they can do that as a as a family 240 00:10:10,045 --> 00:10:12,925 or extended family or even a grouping of people. 241 00:10:13,165 --> 00:10:13,485 Mhmm. 242 00:10:13,485 --> 00:10:16,205 It's fascinating that they can do that and they're willing to do that

for the betterment 243 00:10:16,205 --> 00:10:16,845 of everybody. 244 00:10:17,450 --> 00:10:17,929 Mhmm. 245 00:10:17,929 --> 00:10:19,289 Because it truly does work. 246 00:10:19,289 --> 00:10:22,490 Like later on, eventually you split and you split and you split, and everybody has their 247 00:10:22,490 --> 00:10:22,730 own. 248 00:10:22,730 --> 00:10:24,330 So it's kinda fascinating. 249 00:10:24,649 --> 00:10:28,490 But it's not the typical way that it's been done here, and I think that's throwing the 250 00:10:28,490 --> 00:10:29,289 market for a loop. 251 00:10:31,384 --> 00:10:32,345 Well, it it is. 252 00:10:32,345 --> 00:10:38,024 And so it's kind of like a double edged sword for me because on one hand, it's like, why 253 00:10:38,024 --> 00:10:41,065 punish people for being smart financially? 254 00:10:42,200 --> 00:10:42,680 Right. 255 00:10:42,680 --> 00:10:43,080 Right? 256 00:10:43,080 --> 00:10:46,040 But then on the other side of it is it's like, okay. 257 00:10:46,040 --> 00:10:47,879 But are they producing the work? 258 00:10:48,200 --> 00:10:49,480 Are they doing it correctly? 259 00:10:49,480 --> 00:10:54,840 Are you going into inspections and they're passing with minimal deficiencies that can be 260 00:10:54,840 --> 00:10:55,720 rectified quickly? 261 00:10:56,334 --> 00:11:00,254 And so the response that's coming back is no. 262 00:11:00,894 --> 00:11:02,495 There are multiple deficiencies. 263 00:11:02,495 --> 00:11:05,774 It is like pulling teeth to get them back to fix these deficiencies. 264 00:11:05,774 --> 00:11:13,690 It is and I'm I don't think it's all of them, but there's quite a few here in Alberta that 265 00:11:13,690 --> 00:11:21,690 are running through builders and that are not building according to what the schematics are. 266 00:11:22,089 --> 00:11:22,569 Right. 267 00:11:22,569 --> 00:11:23,129 Right? 268 00:11:23,209 --> 00:11:30,215 And then when you're asking them to come back and address it, they're it's like, all of a 269 00:11:30,215 --> 00:11:34,455 sudden, you know, they're they can't be you can't get in contact with them, or they're it's 270 00:11:34,455 --> 00:11:35,014 like, yeah. 271 00:11:35,014 --> 00:11:35,174 Yeah. 272 00:11:35,174 --> 00:11:35,654 We'll be there. 273 00:11:35,654 --> 00:11:35,815 Yeah. 274 00:11:35,815 --> 00:11:35,894 Yeah. 275 00:11:35,894 --> 00:11:36,215 We'll be there. 276 00:11:36,990 --> 00:11:38,509 Fucking five weeks passes. 277 00:11:38,509 --> 00:11:44,830 And you're like, I can't move my building to the next phase until you fix this shit. 278 00:11:45,549 --> 00:11:48,269 Well, I think that's that comes down to how you write your contract too. 279 00:11:48,269 --> 00:11:48,429 Right? 280 00:11:48,429 --> 00:11:51,950 Like, you're putting in your contract, like, provisions for making rights. 281 00:11:52,855 --> 00:11:55,735 Right, deficiencies, that there's penalties for that. 282 00:11:57,014 --> 00:12:01,815 Again, and this goes across the board, is there should be something that if you're doing 283 00:12:01,815 --> 00:12:07,654 commerce, in construction and in trades, is money should be put into a trust. 284 00:12:08,339 --> 00:12:09,700 It should be put into a trust. 285 00:12:09,700 --> 00:12:10,820 It's handled from the trust. 286 00:12:10,820 --> 00:12:15,379 It's handled through the legal perspective, which protects It the protects the builder. 287 00:12:15,379 --> 00:12:16,419 It protects the owner. 288 00:12:16,419 --> 00:12:17,620 It protects the landowner. 289 00:12:17,620 --> 00:12:20,339 It protects kind of everybody because you know the money exists. 290 00:12:21,195 --> 00:12:24,475 And until your deficiencies are cleared, there is no release of funds. 291 00:12:25,514 --> 00:12:25,914 Mhmm. 292 00:12:25,914 --> 00:12:26,475 Right? 293 00:12:26,715 --> 00:12:30,715 There has to be something that puts that in, but it also means if my deficiencies are done, 294 00:12:30,715 --> 00:12:31,995 I get paid in a timely manner. 295 00:12:31,995 --> 00:12:35,115 I'm not waiting a hundred and eighty days because there's the other side of it. 296 00:12:35,580 --> 00:12:35,980 Right? 297 00:12:35,980 --> 00:12:40,860 Where builders are holding onto the money for, you know, forty five, ninety, hundred and 298 00:12:40,860 --> 00:12:41,740 eighty days. 299 00:12:41,740 --> 00:12:43,019 Like, that's ridiculous. 300 00:12:43,179 --> 00:12:44,700 You become a financing company. 301 00:12:44,700 --> 00:12:48,940 So you have to increase your price to deal with the financing of the builder who has the money 302 00:12:48,940 --> 00:12:52,565 from the the maybe the homeowner, let's say, for example. 303 00:12:52,804 --> 00:12:53,365 Yep. 304 00:12:53,845 --> 00:12:54,164 Right? 305 00:12:54,164 --> 00:12:57,125 Because I'm sure the homeowner's not saying I have a hundred and eighty day stipulation to 306 00:12:57,125 --> 00:12:58,565 pay you for all your stuff. 307 00:12:59,205 --> 00:12:59,524 No. 308 00:12:59,524 --> 00:13:03,924 But homeowners, when they're buying, they're they're provided a timeline of when they're 309 00:13:03,924 --> 00:13:04,965 gonna be able to take possession. 310 00:13:05,529 --> 00:13:10,090 And a lot of times, these homeowner I I mean, I don't think I've ever met a homeowner. 311 00:13:10,490 --> 00:13:14,970 Not saying it doesn't exist, Michael, but I've never met one of a new build project that gets 312 00:13:14,970 --> 00:13:16,970 their home in the time that they were promised. 313 00:13:17,049 --> 00:13:17,370 Right. 314 00:13:17,595 --> 00:13:18,794 It's very rare. 315 00:13:18,875 --> 00:13:23,514 And so when when it's like so when I sit there and I think to myself, okay. 316 00:13:24,875 --> 00:13:26,235 What's the duration? 317 00:13:26,475 --> 00:13:28,235 Like, are we talking a couple of months? 318 00:13:28,235 --> 00:13:29,674 Are we talking a couple of weeks? 319 00:13:29,674 --> 00:13:30,475 What are we talking? 320 00:13:30,899 --> 00:13:37,460 And when people

start talking about five months to a year and a half from promised date, I'm 321 00:13:37,460 --> 00:13:39,139 like, that's gross. 322 00:13:39,220 --> 00:13:39,860 That's awful. 323 00:13:39,860 --> 00:13:41,139 That shouldn't be a thing. 324 00:13:41,139 --> 00:13:44,259 A few weeks to a few months, sure. 325 00:13:44,965 --> 00:13:50,804 Things happen, supply demand, you know, changing out different things. 326 00:13:50,804 --> 00:13:56,725 There are lots of things that can come into play for you not getting your place, say, in 327 00:13:56,725 --> 00:13:59,205 January, and you're now getting the keys in March. 328 00:13:59,284 --> 00:14:00,325 I can understand that. 329 00:14:00,610 --> 00:14:03,009 I can even probably get behind why it is. 330 00:14:03,009 --> 00:14:07,169 I'm I'm not saying I agree with it, but I can understand some of the things that happen in 331 00:14:07,169 --> 00:14:07,809 build. 332 00:14:09,330 --> 00:14:14,769 But if you tell me that you were supposed to get your place in January 2025 or January 2026 333 00:14:14,769 --> 00:14:17,125 and you still don't have keys Right. 334 00:14:17,205 --> 00:14:19,764 I'm gonna say, what's the holdup? 335 00:14:20,965 --> 00:14:24,164 Well, I think that's where that's where having the money controls. 336 00:14:24,164 --> 00:14:26,245 Because it I mean, everybody goes to work for money. 337 00:14:26,485 --> 00:14:29,845 If the money's controlled that nobody's ever holding somebody hostage. 338 00:14:30,170 --> 00:14:30,490 Yeah. 339 00:14:30,490 --> 00:14:30,730 Right? 340 00:14:30,730 --> 00:14:34,250 Which happens all the time, especially contractors to sub trades. 341 00:14:34,250 --> 00:14:36,410 That's I think that's the biggest one. 342 00:14:36,410 --> 00:14:36,570 Right? 343 00:14:36,570 --> 00:14:37,610 Where they're like, no. 344 00:14:37,610 --> 00:14:39,850 Just do this little more, and then I'll pay you. 345 00:14:39,850 --> 00:14:41,529 And then you go and you do that little more. 346 00:14:41,769 --> 00:14:44,170 And then they're like, oh, well, just a little more. 347 00:14:44,170 --> 00:14:44,970 Just a little more. 348 00:14:45,225 --> 00:14:48,424 Or I'm waiting I'm waiting for the homeowner to pay me. 349 00:14:48,424 --> 00:14:50,264 Well, my contract's not with the homeowner. 350 00:14:50,345 --> 00:14:51,625 My contract's with you. 351 00:14:51,625 --> 00:14:53,384 Don't care where you're getting the money from. 352 00:14:53,384 --> 00:14:54,985 You you you pay me. 353 00:14:54,985 --> 00:14:55,544 That's it. 354 00:14:55,544 --> 00:14:56,424 It doesn't matter. 355 00:14:56,424 --> 00:14:58,424 But contractors will just say, I'm waiting for the homeowner. 356 00:14:58,424 --> 00:14:59,704 Again, has nothing to do with me. 357 00:15:00,089 --> 00:15:00,490 Mhmm. 358 00:15:00,490 --> 00:15:04,009 Why you should have put that into your contract, which oftentimes they don't, more 359 00:15:04,009 --> 00:15:04,970 often than not. 360 00:15:05,049 --> 00:15:05,769

Yeah. 361 00:15:06,569 --> 00:15:06,970 Right? 362 00:15:06,970 --> 00:15:09,289 Otherwise, why isn't the homeowner just paying me directly? 363 00:15:09,449 --> 00:15:10,169 Yep. 364 00:15:11,289 --> 00:15:11,769 That's it. 365 00:15:11,865 --> 00:15:13,144 You pay the management fee. 366 00:15:13,144 --> 00:15:16,024 The homeowner pays me directly by contracts with the homeowner. 367 00:15:16,024 --> 00:15:16,504 I finish it. 368 00:15:16,504 --> 00:15:16,985 They pay me. 369 00:15:16,985 --> 00:15:17,544 It's done. 370 00:15:18,024 --> 00:15:18,345 Yeah. 371 00:15:18,345 --> 00:15:23,225 But there's this go between of basically borrowing money from subcontractors as the 372 00:15:23,225 --> 00:15:23,544 builder. 373 00:15:23,879 --> 00:15:28,279 You're borrowing money for however long you take it, whether it's forty days, thirty days, 374 00:15:28,279 --> 00:15:29,879 sixty days, one hundred and eighty days. 375 00:15:31,240 --> 00:15:33,399 And that to me is I think that's usury. 376 00:15:33,480 --> 00:15:35,160 I think it's usury and should be deemed illegal. 377 00:15:38,345 --> 00:15:38,985 Excuse me. 378 00:15:38,985 --> 00:15:40,584 Well, I agree. 379 00:15:40,584 --> 00:15:46,745 But I also think the way that the contracts are designed to my understanding, because I haven't 380 00:15:46,745 --> 00:15:51,240 actually read one, so I can't call it gospel here or say it's a fact. 381 00:15:51,240 --> 00:15:52,839 I can say what I've understood. 382 00:15:53,159 --> 00:15:53,480 Right. 383 00:15:53,480 --> 00:15:59,559 Is that payments are supposed to happen subsequently throughout the build. 384 00:15:59,799 --> 00:16:02,495 They finish one aspect, pay. 385 00:16:02,654 --> 00:16:04,575 Finish next aspect, pay. 386 00:16:04,654 --> 00:16:12,174 Because you're not gonna be able to hold a year's worth of construction as a trade under 387 00:16:12,174 --> 00:16:17,799 you with overhead building materials, blah blah blah blah, and paying everybody for one year 388 00:16:17,799 --> 00:16:19,559 without going fucking bankrupt. 389 00:16:19,799 --> 00:16:20,199 Alright. 390 00:16:20,199 --> 00:16:21,879 So definitely a higher chance anyway. 391 00:16:22,039 --> 00:16:22,759 Yeah. 392 00:16:22,919 --> 00:16:23,959 Very high chance. 393 00:16:24,039 --> 00:16:28,439 So a lot of times, they have those payment plans put in there. 394 00:16:28,439 --> 00:16:32,294 So as as you finish one section, you're paid, and then you move on. 395 00:16:32,375 --> 00:16:36,774 And then sometimes they'll they'll I mean, in building in new build, they still have a a 396 00:16:36,774 --> 00:16:41,254 system where they can still hold back money or hold back a payment until deficiencies are are 397 00:16:41,254 --> 00:16:41,975 addressed. 398 00:16:42,214 --> 00:16:47,659 For me, where I struggle with that, because you are dealing with another business, is instead 399 00:16:47,659 --> 00:16:50,539 of holding all of their money, hold a portion 400 00:16:50,539 --> 00:16:52,940 of it until these deficiencies are complete. 401 00:16:52,940 --> 00:16:56,059 Don't you guys have the same thing as like here where it's 10% for forty five days? 402 00:16:56,059 --> 00:16:59,659 You have a 10% holdback, but it doesn't mean that that's what goes on. 403 00:16:59,975 --> 00:17:02,375 And then you have to go in and you have to lean and you have to do this. 404 00:17:02,375 --> 00:17:08,214 And these these large development firms are like, yeah, I've got like seven liens on me. 405 00:17:08,214 --> 00:17:09,174 I don't give a shit. 406 00:17:09,255 --> 00:17:09,894 You know what I mean? 407 00:17:09,894 --> 00:17:14,960 So it it turns into something ugly, especially with I mean, builders, Some builders have a 408 00:17:14,960 --> 00:17:22,000 good rapport with their some of their forward facing clients, but when it comes to their 409 00:17:22,000 --> 00:17:28,240 trades, like, I don't know a lot of builders that have the same trades they've had all the 410 00:17:28,240 --> 00:17:28,774 way through. 411 00:17:28,774 --> 00:17:29,414 Like, I don't Yeah. 412 00:17:29,414 --> 00:17:30,054 I keep changing. 413 00:17:30,054 --> 00:17:30,375 Yep. 414 00:17:30,375 --> 00:17:30,855 Yeah. 415 00:17:30,855 --> 00:17:32,774 And you have to ask yourself, why did they change? 416 00:17:32,774 --> 00:17:34,294 Was it a bad sub trade? 417 00:17:34,615 --> 00:17:37,494 Was it they didn't pay them so they stopped bidding for them? 418 00:17:37,654 --> 00:17:38,694 What was the reason? 419 00:17:38,934 --> 00:17:40,454 And can I call that sub trade? 420 00:17:40,454 --> 00:17:42,950 Like, That should be part of a vetting process. 421 00:17:42,950 --> 00:17:45,909 But again, you have to just trust that they're giving you the right information. 422 00:17:46,149 --> 00:17:47,429 I don't know. 423 00:17:47,429 --> 00:17:49,509 It's both it's a two sided coin. 424 00:17:49,509 --> 00:17:49,909 Right? 425 00:17:49,990 --> 00:17:54,069 So did you hire the right trades and the right sub trades in the right places that are going 426 00:17:54,069 --> 00:17:57,275 to work well for you, or are you trying to browbeat them down? 427 00:17:57,515 --> 00:18:00,315 Are you trying to get more for less? 428 00:18:00,315 --> 00:18:05,674 Are you trying to exploit or capitalize on a trade that's just here to do one job, but now 429 00:18:05,674 --> 00:18:07,195 you want them to do another job? 430 00:18:07,609 --> 00:18:13,049 I have also found that I find that the some of the builders are what they're some builders 431 00:18:13,049 --> 00:18:18,250 don't ask enough of their site supervisors and assistants, and some ask too much. 432 00:18:18,410 --> 00:18:18,730 Yeah. 433 00:18:18,730 --> 00:18:19,769 That is something I've seen. 434 00:18:19,769 --> 00:18:22,410 It's very unbalanced depending on the company you're with. 435 00:18:22,894 --> 00:18:27,694 Some guys, I don't really know what they fucking do all day long, if I'm being super 436 00:18:27,694

--> 00:18:28,254 honest. 437 00:18:28,335 --> 00:18:33,694 And other guys, I don't see them because they're doing 500 things. 438 00:18:33,855 --> 00:18:34,095 Right. 439 00:18:34,095 --> 00:18:35,454 It's like, oh, where's this person? 440 00:18:35,454 --> 00:18:35,855 I don't know. 441 00:18:36,049 --> 00:18:36,529 I don't know. 442 00:18:36,529 --> 00:18:38,929 What do mean digging a hole somewhere, doing whatever they need to do. 443 00:18:38,929 --> 00:18:39,169 Yeah. 444 00:18:39,169 --> 00:18:40,130 Or They're digging their 445 00:18:40,130 --> 00:18:41,649 hole They're playing on their phone. 446 00:18:42,529 --> 00:18:43,730 I've met those guys. 447 00:18:43,730 --> 00:18:44,609 I've gone yeah. 448 00:18:45,089 --> 00:18:50,849 I've gone to site, and I'm like, I need to find this person, but then this guy sitting in his 449 00:18:50,849 --> 00:18:52,315 truck playing on his phone. And 450 00:18:52,154 --> 00:18:55,674 And I'm like, it's fucking 09:30, bro. 451 00:18:55,674 --> 00:19:00,154 Like, it's not even twelve or 11:30 where I could, like, maybe say he's on a break. 452 00:19:00,154 --> 00:19:00,715 Like Right. 453 00:19:00,715 --> 00:19:02,475 It's 09:30, and you're on your phone. 454 00:19:02,875 --> 00:19:03,674 At seven. 455 00:19:03,674 --> 00:19:05,674 If we start at seven, 09:30 could be a break. 456 00:19:08,289 --> 00:19:09,170 Could be. 457 00:19:09,170 --> 00:19:09,809 Could be. 458 00:19:09,809 --> 00:19:14,450 Most site supervisors and assistant site supervisors are constantly on the on their 459 00:19:14,450 --> 00:19:15,490 phones Right. 460 00:19:15,490 --> 00:19:20,130 Or constantly on some sort of form of communication system, whether it's email, text 461 00:19:20,130 --> 00:19:24,694 message, actual physical call, or talking to clients. 462 00:19:24,775 --> 00:19:26,615 Most of those guys are pretty busy. 463 00:19:27,335 --> 00:19:30,454 Some of them, I just I don't understand how they get their jobs. 464 00:19:30,775 --> 00:19:34,535 Some of them, I'm just like, I love the padded resume aspect. 465 00:19:34,535 --> 00:19:40,009 I can do all this, but it's like then you meet them and you start talking to them. 466 00:19:40,090 --> 00:19:42,410 Like, will never when I walk into okay. 467 00:19:42,410 --> 00:19:43,289 So I'll give you an example. 468 00:19:43,289 --> 00:19:45,049 So I was in a unit not long ago. 469 00:19:46,090 --> 00:19:48,250 I've never seen how texturing a ceiling is. 470 00:19:48,250 --> 00:19:52,585 I am construction consultant, but I'll tell you, I have never seen someone texture a 471 00:19:52,585 --> 00:19:53,704 ceiling for knockdown. 472 00:19:53,704 --> 00:19:54,184 Never seen it. 473 00:19:54,184 --> 00:19:58,585 This time, I decided I was gonna stay and watch how they did it. 474 00:19:58,585 --> 00:19:59,384 And I was like, oh, fuck. 475 00:19:59,384 --> 00:20:00,584 That's all there is to it? 476 00:20:00,904 --> 00:20:01,144 Mhmm. 477 00:20:01,144 --> 00:20:05,769 And that sounds

really bad because you have to here's the thing. 478 00:20:05,769 --> 00:20:07,369 There is a method to the madness. 479 00:20:07,369 --> 00:20:11,130 You have to if you're especially when you're blending, you have to see in the direction in 480 00:20:11,130 --> 00:20:12,009 which they scrape. 481 00:20:12,009 --> 00:20:15,529 Do you have to see that they or which which way they've used their their paddle, right, to 482 00:20:15,850 --> 00:20:18,315 scrape it down To or to knock it down. 483 00:20:18,315 --> 00:20:19,195 Say to knock it down. 484 00:20:19,195 --> 00:20:22,474 Because not they're they're scraping as far as I'm concerned, but they're not scraping it to 485 00:20:22,474 --> 00:20:23,515 the you know what I mean? 486 00:20:23,595 --> 00:20:27,195 But so you have to see what direction the knockdown is going. 487 00:20:27,195 --> 00:20:29,595 You have to ensure that you have enough there. 488 00:20:29,595 --> 00:20:31,275 You have to leave it for so much time. 489 00:20:31,275 --> 00:20:31,835 You have to wait. 490 00:20:32,149 --> 00:20:34,069 Now I was covered in fucking spackle. 491 00:20:34,069 --> 00:20:34,869 I'm not gonna lie to you. 492 00:20:34,869 --> 00:20:36,470 I would because I was in there. 493 00:20:36,470 --> 00:20:39,909 I was in the enclosure with them because I'm looking at everything, and I'm like, here. 494 00:20:39,909 --> 00:20:40,230 Here. 495 00:20:40,230 --> 00:20:40,630 Here. 496 00:20:40,630 --> 00:20:41,029 Yep. 497 00:20:41,029 --> 00:20:41,349 Right? 498 00:20:41,349 --> 00:20:44,630 And but I got to watch them do it, and there is a process. 499 00:20:44,630 --> 00:20:49,724 And if you if you if you knock down too quickly, it's shit. 500 00:20:50,125 --> 00:20:51,085 It looks like shit. 501 00:20:51,085 --> 00:20:53,484 Like, you gotta wait for the product to set. 502 00:20:53,884 --> 00:20:55,484 So it was interesting to me. 503 00:20:55,484 --> 00:20:59,724 So that's where I talk about, like, if I don't know something, I'm not like, oh, I know how to 504 00:20:59,724 --> 00:21:01,809 I know how how to do knockdown. 505 00:21:01,809 --> 00:21:02,049 No. 506 00:21:02,049 --> 00:21:02,929 I fucking didn't. 507 00:21:02,929 --> 00:21:03,729 I learned. 508 00:21:03,970 --> 00:21:04,289 Right. 509 00:21:04,289 --> 00:21:05,169 I learned how they do it. 510 00:21:05,169 --> 00:21:06,609 I learned what products they use. 511 00:21:06,609 --> 00:21:08,289 I learned that they've got their hopper. 512 00:21:08,289 --> 00:21:11,169 They've got the, you know, the the equipment to do it all. 513 00:21:11,169 --> 00:21:12,450 Like, I've watched it all go down. 514 00:21:12,450 --> 00:21:14,049 I've seen people spray popcorn. 515 00:21:14,049 --> 00:21:15,490 It's a similar process, but not. 516 00:21:16,065 --> 00:21:21,664 So, you know, I'm just like, at the end of the day, I just sit there and I say to myself, when 517 00:21:21,664 --> 00:21:27,505 people try and tell you that they know how to do something, and they try to bullshit talk 518 00:21:27,505 --> 00:21:34,670 their way through the scenario, it's almost fucking amusing for me when I'm like when I ask 519 00:21:34,670 --> 00:21:38,829 somebody about something that I know really well in regards to building envelope. 520 00:21:39,230 --> 00:21:39,789 Mhmm. 521 00:21:39,789 --> 00:21:44,910 I don't claim to be an expert on it, but I have been around a lot of building envelope issues. 522 00:21:45,575 --> 00:21:52,855 So when someone's talking unless you're an engineer, I usually just kinda half listen. 523 00:21:53,414 --> 00:21:56,054 Engineers, I listen to, like, intently. 524 00:21:57,174 --> 00:22:02,919 But if you're a contractor who has a guy who knows a guy, like, had a guy up on one of my 525 00:22:02,919 --> 00:22:03,240 sites. 526 00:22:03,240 --> 00:22:04,359 I'm like, why are you here? 527 00:22:04,919 --> 00:22:05,799 Oh, I'm with this guy. 528 00:22:05,799 --> 00:22:07,239 I don't give a shit who you're with. 529 00:22:07,240 --> 00:22:08,440 Why are you here? 530 00:22:09,319 --> 00:22:11,484 Oh, well, yeah. 531 00:22:11,964 --> 00:22:13,565 Well, he just wanted my perspective. 532 00:22:13,565 --> 00:22:13,964 Why? 533 00:22:13,964 --> 00:22:14,845 What's your background? 534 00:22:14,845 --> 00:22:15,484 Restoration. 535 00:22:15,484 --> 00:22:17,004 This isn't a restoration project. 536 00:22:17,484 --> 00:22:18,124 Okay. 537 00:22:18,605 --> 00:22:19,164 Right? 538 00:22:19,164 --> 00:22:26,045 So it's like, help me understand why your body is in the same area as mine on my project, 539 00:22:26,130 --> 00:22:28,049 because I'm not paying you to be here. 540 00:22:28,130 --> 00:22:29,009 So Right. 541 00:22:29,730 --> 00:22:30,929 Why are you here? 542 00:22:31,009 --> 00:22:32,849 And it's like, oh, they want my expertise. 543 00:22:32,849 --> 00:22:33,089 Okay. 544 00:22:33,089 --> 00:22:34,529 Well, what's your area of expertise? 545 00:22:34,529 --> 00:22:35,250 Is it patio? 546 00:22:35,250 --> 00:22:35,809 Is it decking? 547 00:22:35,809 --> 00:22:36,609 Is it membrane? 548 00:22:37,970 --> 00:22:39,169 You know, what is it? 549 00:22:39,170 --> 00:22:40,849 And, oh, it's restoration. 550 00:22:41,089 --> 00:22:41,410 Okay. 551 00:22:41,794 --> 00:22:46,835 And then they start talking about putting together an enclosure because we needed to 552 00:22:46,835 --> 00:22:51,554 hoard the the area because of of weather, and they're talking about how to do this. 553 00:22:51,554 --> 00:22:52,835 And I'm like, we're not doing that. 554 00:22:53,154 --> 00:22:54,034 And he's like, why not? 555 00:22:54,034 --> 00:22:56,994 I'm like, because you're gonna you're going to damage material. 556 00:22:57,599 --> 00:22:58,720 We're not doing that. 557 00:22:58,720 --> 00:23:03,359 And it was all like, well, I think I'm like, you're not part of this project. 558 00:23:03,440 --> 00:23:04,879 You're here as a guest. 559 00:23:05,119 --> 00:23:05,679 Right? 560 00:23:06,240 --> 00:23:08,159

Like, stop talking. 561 00:23:08,720 --> 00:23:13,934 So I get pissy about people like that when they when they try and tell you what to do, but it's 562 00:23:13,934 --> 00:23:16,894 gonna further damage things or it's gonna further cause complications. 563 00:23:16,894 --> 00:23:18,974 And your your brain, you're almost like scratching your head. 564 00:23:18,974 --> 00:23:21,214 Like, what purpose do you have? 565 00:23:24,089 --> 00:23:29,289 Well, going going back to the the start of it is when you look at the financial end of it, 566 00:23:29,289 --> 00:23:31,130 because I think a lot of it ties to that. 567 00:23:31,930 --> 00:23:32,250 Right? 568 00:23:32,250 --> 00:23:40,275 Is what would you say is a is a reasonable profit margin profit margin for a a company in 569 00:23:40,275 --> 00:23:40,994 trades? 570 00:23:42,275 --> 00:23:44,035 Are we talking new build or renovation space? 571 00:23:44,035 --> 00:23:46,035 Are we talking GZ or are we talking trade? 572 00:23:46,035 --> 00:23:46,835 Talking about either. 573 00:23:50,819 --> 00:23:54,099 I think between 2033% Mhmm. 574 00:23:54,339 --> 00:23:57,619 Is fair of the overall project itself. 575 00:23:57,700 --> 00:24:00,739 And the crazy thing is is people will say, well, that's a lot of money. 576 00:24:00,980 --> 00:24:01,700 Yes. 577 00:24:02,339 --> 00:24:02,659 Yes. 578 00:24:02,659 --> 00:24:04,980 It could be for a larger company or even for a small company. 579 00:24:04,980 --> 00:24:06,179 I mean, it's 20 to 30%. 580 00:24:06,575 --> 00:24:08,095 That's for growth. 581 00:24:08,974 --> 00:24:09,454 Right? 582 00:24:09,454 --> 00:24:13,535 So you've got growth money, you've got deficiencies, you've got an insurance claim 583 00:24:13,535 --> 00:24:15,054 that maybe doesn't cover anything. 584 00:24:16,575 --> 00:24:16,815 Right? 585 00:24:16,815 --> 00:24:17,615 There's a lot of other stuff. 586 00:24:17,615 --> 00:24:20,255 And when you're a company, because people will like, Well, you should take that money, you 587 00:24:20,255 --> 00:24:21,055 should give it to your employees. 588 00:24:21,649 --> 00:24:22,049 Okay? 589 00:24:22,049 --> 00:24:24,529 What risk are the employees taking? 590 00:24:24,690 --> 00:24:29,169 If they go in and they do something that could start a fire as an electrician, they wire up 591 00:24:29,169 --> 00:24:30,369 something wrong that could start a fire. 592 00:24:30,369 --> 00:24:31,569 They never test it. 593 00:24:31,569 --> 00:24:32,369 They say, I'm all done. 594 00:24:32,369 --> 00:24:33,169 I'm all good. 595 00:24:33,169 --> 00:24:35,169 The inspector comes through and says, it's all done. 596 00:24:35,169 --> 00:24:35,809 It's all good. 597 00:24:35,809 --> 00:24:36,690 And it starts a fire. 598 00:24:36,934 --> 00:24:38,374 Who do you think is responsible? 599 00:24:39,335 --> 00:24:40,294 The company. 600 00:24:41,095 --> 00:24:41,414 Right? 601 00:24:41,414 --> 00:24:44,214 So the accountability goes up to the company. 602 00:24:44,535 --> 00:24:47,974 The company needs that profit margin to sit there, hopefully if they've done their books 603 00:24:47,974 --> 00:24:52,079 right, to either grow, provide training, grow their employees, grow their business, and 604 00:24:52,079 --> 00:24:53,039 protect their business. 605 00:24:53,119 --> 00:24:57,519 I think that's a perfectly plausible number. 606 00:24:58,000 --> 00:24:58,559 Yeah. 607 00:24:58,559 --> 00:25:02,000 But I'm hearing in the trades all the time where people are like, Give me more, give me 608 00:25:02,000 --> 00:25:03,519 more, give me more as the individual. 609 00:25:04,234 --> 00:25:07,994 And like, but then the price has to go up because I still need to maintain those rough 610 00:25:07,994 --> 00:25:08,315 numbers. 611 00:25:08,315 --> 00:25:09,434 And I'm I'm in agreement with you. 612 00:25:09,434 --> 00:25:12,315 I think that 20 to 33% is right in the ballpark. 613 00:25:12,795 --> 00:25:13,275 Yeah. 614 00:25:13,275 --> 00:25:17,115 Well, is profit a fucking dirty word? 615 00:25:18,150 --> 00:25:19,110 I have no idea. 616 00:25:19,110 --> 00:25:23,350 How don't you want your don't you want the company that you work for to be sustainable and 617 00:25:23,350 --> 00:25:25,750 still be around so you don't have to go find a new car? 618 00:25:25,910 --> 00:25:28,069 When the client goes, well, why is this so much? 619 00:25:28,470 --> 00:25:30,309 Is profit a dirty word to you? 620 00:25:30,309 --> 00:25:31,350 Because here's the thing. 621 00:25:31,350 --> 00:25:38,234 When you when we when when I sit down on a site and we bring in a GC, k, because the GC takes 622 00:25:38,234 --> 00:25:38,634 prime. 623 00:25:38,634 --> 00:25:39,674 I don't take prime. 624 00:25:39,914 --> 00:25:41,194 GC takes prime. 625 00:25:41,194 --> 00:25:42,554 GC gets the stuff done. 626 00:25:42,554 --> 00:25:44,474 They hold all the insurances. 627 00:25:44,474 --> 00:25:46,875 They hold all the responsibility, all the liability. 628 00:25:46,875 --> 00:25:51,119 Now each one of those companies have a layer of insurance, but it doesn't negate the fact that 629 00:25:51,119 --> 00:25:54,640 the GC will be the one that has to engage their insurance quickly. 630 00:25:55,039 --> 00:25:58,559 So especially when there's a problem on-site, we're that's the first one we're going to. 631 00:25:58,559 --> 00:26:00,559 We don't give a shit who else you have on-site. 632 00:26:00,559 --> 00:26:04,424 We have all of them on our contract, but we're coming for you because we signed a contract 633 00:26:04,424 --> 00:26:06,904 with you with the understanding that these are your subs. 634 00:26:07,144 --> 00:26:07,545 Okay? 635 00:26:07,545 --> 00:26:09,704 So your issue with your subs is your issue. 636 00:26:09,785 --> 00:26:16,029 So when I sit there and I think about how all of that spans out, I'm like people are like, 637 00:26:16,029 --> 00:26:16,269 okay. 638 00:26:16,269 --> 00:26:17,630 Well, what's the cost? 639

00:26:17,710 --> 00:26:18,190 Okay. 640 00:26:18,190 --> 00:26:20,190 Well, the cost I'll give you an example. 641 00:26:20,349 --> 00:26:23,390 So we have a $100,000 job. 642 00:26:23,950 --> 00:26:28,190 GC has paid out $70,000 on this job. 643 00:26:28,190 --> 00:26:29,230 Let's even say 65. 644 00:26:29,315 --> 00:26:32,274 $65,000 are the GC's costs. 645 00:26:32,595 --> 00:26:35,954 And and that's just for trades. 646 00:26:35,954 --> 00:26:40,274 That's just what the cost is for trades and material was $65,000. 647 00:26:40,434 --> 00:26:45,039 Then they have their own people that are going there and doing all of the investigative work, 648 00:26:45,039 --> 00:26:48,879 running all of it, doing the schedules, getting everything figured out, doing the reports, 649 00:26:48,879 --> 00:26:52,879 reporting to be so they have a project manager, and then they have the usual have a project 650 00:26:52,879 --> 00:26:58,240 manager and a site soup that's going to check the jobs more because a project manager doesn't 651 00:26:58,240 --> 00:26:59,039 go to the job every day. 652 00:26:59,654 --> 00:27:01,815 So they'll have someone that goes and checks the job every day. 653 00:27:01,815 --> 00:27:03,414 So that's two employees that they have there. 654 00:27:03,414 --> 00:27:04,295 So they gotta pay them. 655 00:27:04,295 --> 00:27:05,734 So that's gotta have a cost. 656 00:27:06,615 --> 00:27:10,615 Then they also have to make sure that they and they also make sure that they run a profit 657 00:27:10,615 --> 00:27:13,894 because they're the ones who have to pay for all of the insurances, pay for all of the 658 00:27:13,894 --> 00:27:16,710 materials, pay their trades while they're doing it. 659 00:27:16,710 --> 00:27:17,829 They're taking off. 660 00:27:17,750 --> 00:27:17,910 Profit. This 661 00:27:17,830 --> 00:27:20,309 This That's after everything is paid. 662 00:27:20,309 --> 00:27:21,430 Everything is done. 663 00:27:21,509 --> 00:27:28,150 After everything is said and paid, they're probably sitting at probably about $80,000. 664 00:27:28,714 --> 00:27:29,035 Right. 665 00:27:29,035 --> 00:27:29,195 Maybe 666 00:27:29,195 --> 00:27:34,634 $8,020,000 dollars to sit and hold, whether that be for additional warranty work that 667 00:27:34,634 --> 00:27:37,914 instead of processing it through insurance, you actually pay for it out of pocket. 668 00:27:37,914 --> 00:27:38,154 Yep. 669 00:27:38,154 --> 00:27:41,994 The insurance rates don't go up, so it's probably cheaper to take some of that 20 k. 670 00:27:42,380 --> 00:27:46,460 And if I have to put 20 k into it, it's probably cheaper than going through my 671 00:27:46,460 --> 00:27:48,220 insurance over the longevity of my company. 672 00:27:48,220 --> 00:27:50,700 Because my hope is the company is gonna stick around. 673 00:27:50,940 --> 00:27:51,500 Correct. 674 00:27:51,980 --> 00:27:52,619 Right? 675 00:27:52,779 --> 00:27:55,019 This is the part that and there's all the sight unseen. 676

00:27:55,019 --> 00:27:55,259 Right? 677 00:27:55,259 --> 00:27:59,605 The shopping around for prices, the you know, meeting different suppliers, going and checking 678 00:27:59,605 --> 00:28:04,164 their manufacturing, all that stuff that's sight unseen that may not be paid for. 679 00:28:04,164 --> 00:28:06,884 That might be somebody inside of the company who's just doing it. 680 00:28:07,205 --> 00:28:07,765 Well, that's it. 681 00:28:07,765 --> 00:28:11,859 Then they have their accounting departments, and they have people, you know, the there's so 682 00:28:11,859 --> 00:28:13,380 many different aspects to overhead. 683 00:28:13,380 --> 00:28:15,539 So then when I come back and I tell people, okay. 684 00:28:15,539 --> 00:28:16,740 The work that was done was this. 685 00:28:16,740 --> 00:28:17,779 I've done reconciliation. 686 00:28:17,779 --> 00:28:18,740 I've looked over everything. 687 00:28:18,740 --> 00:28:19,940 I've done what I need to do. 688 00:28:20,019 --> 00:28:24,339 Your contractor is at this number, and this is the number we need to pay. 689 00:28:24,339 --> 00:28:25,299 And they're like, why? 690 00:28:26,325 --> 00:28:27,604 That's too high. 691 00:28:27,924 --> 00:28:28,884 And it's like 692 00:28:29,524 --> 00:28:33,204 Oh, I love when contracts are done and then the negotiations start then. 693 00:28:33,684 --> 00:28:34,005 You're 694 00:28:34,005 --> 00:28:34,724 like Yeah. 695 00:28:34,724 --> 00:28:35,364 What? 696 00:28:35,524 --> 00:28:37,844 You didn't you didn't discount it when you started. 697 00:28:38,085 --> 00:28:39,284 Why are you discounting it now? 698 00:28:39,284 --> 00:28:40,804 Did you not get what you're supposed to get? 699 00:28:42,930 --> 00:28:43,649 Yeah. 700 00:28:43,730 --> 00:28:44,450 Right? 701 00:28:44,849 --> 00:28:45,490 Okay. 702 00:28:45,490 --> 00:28:47,009 Or did the scope change? 703 00:28:47,410 --> 00:28:48,130 Mhmm. 704 00:28:49,410 --> 00:28:49,809 Right. 705 00:28:49,809 --> 00:28:50,529 Who knows? 706 00:28:50,849 --> 00:28:54,849 Scope creep is probably where it's more offensive, where people put more on the margins 707 00:28:54,849 --> 00:28:55,809 on scope creep. 708 00:28:56,735 --> 00:29:01,855 But that's also and here's where I can rationalize it, that going up to 40 or 50% on 709 00:29:01,855 --> 00:29:08,174 scope creep instead of 20 to 33% makes sense because you're chewing into the timeline of 710 00:29:08,174 --> 00:29:09,695 another project that's supposed to start. 711 00:29:11,690 --> 00:29:12,490 It makes sense. 712 00:29:12,490 --> 00:29:15,609 You're trying to buy my time away from something else if I've laid out my company 713 00:29:15,609 --> 00:29:16,250 well. 714 00:29:16,490 --> 00:29:19,609 You're trying to buy my time from something else because there's additional work, or you 715 00:29:19,609 --> 00:29:21,210 can get somebody else to go do it. 716 00:29:21,369 --> 00:29:21,690 Yeah. 717 00:29:21,690 --> 00:29:23,130 Now you're gonna get somebody else to do it. 718 00:29:23,130 --> 00:29:24,570 I mean, that's more pain in the ass for you. 719 00:29:25,045 --> 00:29:25,525 Okay. 720 00:29:25,525 --> 00:29:28,884 But now I've gotta take my guys from somewhere else while still trying to meet my obligations 721 00:29:28,884 --> 00:29:29,605 over here. 722 00:29:30,085 --> 00:29:30,884 Exactly. 723 00:29:31,125 --> 00:29:33,365 So I have to wrap this up because I have to take off. 724 00:29:33,365 --> 00:29:33,924 But Yep. 725 00:29:33,924 --> 00:29:34,644 Oh my gosh. 726 00:29:34,644 --> 00:29:35,285 I'm just thirty minutes. 727 00:29:35,285 --> 00:29:36,005 I'm already gonna be late. 728 00:29:36,005 --> 00:29:36,724 I'm already gonna be late. 729 00:29:36,724 --> 00:29:38,164 But here's where here's my takeaway. 730 00:29:38,740 --> 00:29:42,500 Check these check well, check out Josh Fix's trade trauma. 731 00:29:42,500 --> 00:29:43,379 I think he's great. 732 00:29:44,019 --> 00:29:48,579 Stop making profit a fucking dirty word, and understand that the overhead that goes on 733 00:29:48,579 --> 00:29:52,419 inside of companies, most people know nothing about including employees. 734 00:29:52,454 --> 00:29:58,375 So until you have walked a day in your owner's shoes and done the sacrifices that they have 735 00:29:58,375 --> 00:30:04,054 done, male or female, it don't get upset when you see them not there on a Friday. 736 00:30:04,375 --> 00:30:08,019 Don't get upset when you know that they're gone on a vacation with their family because it's 737 00:30:08,019 --> 00:30:10,419 probably the first one they've taken in ten fucking years. 738 00:30:10,579 --> 00:30:12,980 So Or maybe they'll have a nicer car than you. 739 00:30:13,059 --> 00:30:13,380 Yeah. 740 00:30:13,380 --> 00:30:14,179 Who cares? 741 00:30:14,259 --> 00:30:14,740 Yeah. 742 00:30:14,740 --> 00:30:15,140 Get them. 743 00:30:15,140 --> 00:30:17,940 If you don't like it, be an entrepreneur, start your own company. 744 00:30:18,180 --> 00:30:18,980 You got it. 745 00:30:18,980 --> 00:30:19,619 Okay, everybody. 746 00:30:19,619 --> 00:30:21,539 Catch you on the flip side, and don't do anything crazy.