Buying a drywall or finish carpentry company in Florida

These companies turn a framed building into a finished interior: hanging and finishing drywall, installing doors, trim, baseboards, crown molding, cabinets, closet systems, stair parts and millwork. Most are subcontractors. Their customers are homebuilders, general contractors and remodelers, who hand out work by the house, unit or project and pay in stages as the work is accepted. Some also work directly for homeowners and property managers on repairs, remodels and custom carpentry.

Builder work is volume work: a set price per house or per square foot, crews moving from lot to lot, and revenue that follows new home starts. Commercial interiors (offices, medical suites, retail build-outs) bring larger jobs, with more paperwork, retainage (payments held back until the end) and schedules set by the general contractor. Jobs are one-offs. The relationships with builders and contractors are what repeat. Most companies have crews of hangers, finishers or carpenters, crew leaders, a field supervisor, an estimator, a small office, and an owner who handles the biggest customers.

• Several builder and contractor customers, so one builder's slowdown doesn't idle the crews.
• Crew leaders who manage quality and schedule without the owner, and fix problems before the builder's superintendent finds them.
• Estimates from plans, with margins tracked per house or project.
• A reputation for being on time: a late drywall or trim crew holds up every trade after it.
• Enough crews to take on a new subdivision without hiring in a panic.
• Proper insurance for every crew and a clean workers' compensation record.
• Some remodel or commercial work to soften housing slumps.
• Lifts, tools and trucks in good shape, with no surprise replacements due.

Florida law lets an unlicensed subcontractor work under the supervision of a licensed general, building or residential contractor. The work must be within that contractor's license and can't be a trade that needs its own, such as electrical or plumbing.

The Construction Industry Licensing Board at the Florida DBPR also offers specialty certifications in several finish trades, including gypsum drywall, structural carpentry, plaster and lath, and window and door installation. State law makes them voluntary (section 489.113(6)). Cities and counties may still require their own license for work in those categories. But state law bars them from requiring one for cabinetry, plastering, and interior remodeling that doesn't involve a licensed trade. Ask the building department in each county where the company works, and expect a local business tax receipt.

Florida's workers' compensation law treats drywall and carpentry as construction trades, so coverage is required with even one employee, counting corporate officers unless they've filed a state exemption. A contractor can also become responsible for an uninsured subcontractor's workers.

• Revenue by customer for three years, and how much each builder owes now.
• What each builder pays per house or square foot, and whether that has kept up with labor and material costs.
• Who buys materials, the company or the builder. Buying drywall or trim ties up cash and adds risk.
• Whether workers are employees, paid by the piece, or subcontractors, and how each is insured. Treating employees as independent contractors can mean back taxes and penalties; ask your accountant.
• Callbacks and punch-list work (small fixes before handover) that eat into margins.
• Back charges (deductions builders take for problems), disputes and unpaid invoices.
• Equipment and trucks, and any loans on them.
• Past injuries. Drywall and trim work involve lifts, stilts and ladders, and claims raise insurance costs.

• Who are your main builders and contractors, and how long have you worked with them?
• How do you price a house or a project, and when did you last raise prices?
• Do you buy materials, or does the builder supply them?
• Are your crews employees or subcontractors, and how are they paid?
• What licenses or certifications does the company hold?
• How often do builders hit you with back charges, and what for?
• Who runs the crews day to day?