Contractor bank statement??

9 Replies

I had heard a good tip from an investor to get a copy of a new contractors bank statement to provide proof that they aren't paycheck to paycheck GC's. Anybody else on here do that or have heard of doing that? Won't that piss off a contractor by getting too personal? It seems like a real smart idea though but I don't want to burn any bridges with a potentially good GC.

As a General Contractor w 15 yrs experience, you would never get that information from me. But I would provide trade references to my subs and suppliers. If you can get that and a contractors shows good pay history with the companies he buys from thats a good start.

After I was done laughing, I would tell you to go find someone else to do the job. Personal finances are just that. Personal. If you want references, sure, no problem. But I'm not showing my bank statement to anyone as a condition of getting work. That is said as one who has been and is on both sides of that question.

Yeh, I was laughing too. The request should probably be the other way around.

For everyone's information if this is a large commercial project then the GC will almost always be required by the lender to provide a copy of their financial statements.

I would never ask this on a residential project. If you're worried you can ask something alkng the lines of "how much business did you do last year" or something to help get you comfortable.

You could very well get great work out of someone who happens to live paycheck to paycheck so I wouldn't automatically disqualify someone just because of they financial situation. They might end up being very reliable because they need the work. If you're really concerned, buy and deliver the materials yourself and just pay the GC for labor. Or pay the subs directly.

A lot more to be concerned with than just their bank statement.

As has been mentioned... on a giant commercial or industrial job, this is pretty much standard practice. Of course, it's also typical that you'd be dealing with a multi-state conglomerate that grosses millions (or tens of millions, or hundreds of millions) of dollars every year.

If someone asked me to see my PERSONAL bank statements, I'd tell them to get stuffed. If someone asked to see my CORPORATE bank statements, I'd still tell them to get stuffed! If you're that concerned, let's draw up a performance bond... oh, and by the way, I'll expect you to escrow the entire contract amount with a third party ahead of time. We ARE talking about a job in excess of $400-500k, right?

Wish there were more investors instead of contractors replying to many of these posts about hiring contractors. 

@Alex Bejenaru Even if a contractor shared his bank statement with you, it wouldn't mean much in terms of you being able to assess his honesty, competence and reliability.   There are plenty of rich crooks. 

In NC a general contractor must renew his license every year and as part of that process, must demonstrate a certain amount of financial health (working capital)... though again, this has limited value in judging his overall character. 

Many seek a 'secret formula' for finding good contractors but there is no such thing. It takes time to find good people and build relationships with them.  The occasional bad experience is unavoidable and just part of the process.  All in all, referral really does seem to be the best method. 

Originally posted by @Kelly W. :

Wish there were more investors instead of contractors replying to many of these posts about hiring contractors. 

 Many of us here are both!  :)

If you get good referrals and look at some of his work that goes a long way.

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