Business continues to be slow at the house, not enough work being advertised to bid on and I'm looking at altenatives. If you are actively employed or contracting in N. Dakota, or have been in the past year or so and are familiar with business arrangments for contractors and rig welders and can provide any insight for me to evaluate prospects up there I'd appreciate it. Let me define some job classifications so we'd be taking on the same page:
Contractor- insured, licensed, bonded independent owner/operator that supplies all required equipment, consumables, tooling to perform a specified scope of work at either a lump sum price or a time and material agreement. They are paid strictly on a 1099, file a schedule C and are not employees.
Rig Welder- an employee paid a wage, subject to overtime and Workman's Compensation protection and recieving a "split check", one for wages, one for the use of his welding rig either an hourly rental/misc. labor paid on a 1099 that may or may not include consumabes, fuel, milage or other compensation that is negotiated or offered by his employer, usally a large industrial General Contractor.
I am interested in learning about possible work available in N. Dakota performing in either of these two classifications. If there are other arrangements being made with welders in ND that I haven't mentioned I would like to hear about them and evaluate.
I have been in the trade over 20 years, put my first rig together in 1995, operated a sole proprietorship performing competitively bid public work contracts since 2002, have done NG station work, oil field flow lines [mostly Bakersfield, CA] fully tooled journeyman that can weld, fit, fabricate, install whatever can be drawn [ not trying to boast, just hoping to represent as a competent professional] refinery, plant work, Certified Industrial Mercenary for hire.
If any established business owners, or experienced N. Dakota hands are willing to fill me in on the requirements and details of N.D. work I'm hoping to be heading up that way in a few weeks, make some contacts and have a look see. I am minimally familiar with Master Service Agreements with drilling operators, and unsure how deeply I want to invest business capital and time but any information you want to provide that seems important I be aware of would be helpfull.
Please feel free to take this up in a PM if you prefer it kept confidentail.
Thanks in advance.
First Question I have is..............Where are you from ?
And do you like the cold?
It is VERY hard to just walk in to North Dakota and go to work with no Connections. Been There. Done That. Ain't goin back. I spent about 18 months there. Enough for me. Not to mention it is the Coldest place on the Planet. It is the ONLY place I have EVER seen frost on a windsheild in August !
its not that cold unless you are from the south. It was that cold back home in N WI too i guess if you grow up in it you are used to it. I do not like the hot for very long tho you southern boys and girls can have that s--t i will stay in the frozen tundra!
If you go there plan on sleeping in your truck as there is no hotels or rv lots available. I have a few guys posted in williston they are sleeping on cots in a man camp.
man camps. lmao im not that hungrey. i promise.
Uh nope I don't do man camps throw in a fat girl or two I'll be in tho!!
johnny it depends on how hot the beer was to have fat girls there!
Well i live in williston, Been here for five years, to just walk in and go to work.. doesn't happen. I have a few offers to sell my customer list( we will see). There are SO many welders coming to the area now it's getting pretty cutthroat. which it shouldn't be.. I work for the big ones here and I have had enough.. kind regards, Shannon
Word is in the ND patch that there are 160 - 165 rigs drilling and in '11 there is supposed to be another 70 - 80 rigs coming in and drilling. That may mean a need for more rig (drilling) welders. The big push for more drilling rigs is due to no new offshore drilling and in ND a lease has to be drilled in 3 - 5 years or the lease is lost. That is if it is not re-leased for another 3 -5 -So a lot of land that has been leased for upwards of $1000 an acre per year has to be drilled or the initial investment is lost.
'11 could be or begin to be the most insane in ND with very little infrastructure and a very large demand for whtatever little there is.
Hey Guys-
Thanks for the replies. There weren't any that actually answered my questions directly, which may have been a result of the manner I posed them ie. what are the generally established business relationships for welders- contractor or rig welder- as defined in my original post, which was the heart of the matter as the financials of that dictate the economics on the return of investment, but despite the sidelined and sometimes sideways responses, I do appreciate the comraderie. As a sole proprietor one too often finds oneself in one's own company sometimes more than one might care for, getting things done, bidding, doin the books, payin the bills, scratchin yer head and then having to get the damn thing built on time without help. So while I'd usually put off checking in on internet related networking until the usual morning routine, something told me to wander on over here, and lo and behold.... a veritable embarrassment of riches in responses. I am overwhelmed and gratefull gentleman and thank you all. It would be foolish and unwise not reply to some of the explicit and inferred questions posed by my inquiry, and to ignore the general consensus of discouragement toward my endeavors and expressed intention would display a cowardice of spirit I'd find hard to embrace. In order to eradicate any such perceptions let me take up the expressed and implied unanswered questions, not in order of importance, but simply from the top: Cactus- and I don't want you to take this the wrong way- but I cannot imagine a less responsive or meaningless question- where am I from?- being posed to my posting. I have long abided with the firm conviction that a man's origin is of little if any importance. "It's not where you're from, it's where you're at", and imagine the second part of that parentithized phrase being spoken with a finger pointed to ones own head. One's mindset and determination are the deciding factors in a mans path, not his country, county or state of origin. Now it does make sense that those unaccustomed to difficulty, or cold, might not fair as well with those of experience with difficulty or cold, but I'd personally not restrict an evaluation of somone's ability to persevere based on where they came from. To answer your question directly- although I think I've made it clear to me it's irrelevant- I'm from Yankeeland- born, bred and blood. Disregarding the malice my further explanation might engender, the war that established this country in the late 18th century was decided by men of my region of origin- the North East- in dire circumstances and cold weather. Valley Forge is a largely forgotten episode of American History we'd all do right to bear in mind when we discuss among our brethren what it truly means to be a part of this country, but let's keep in mind, it was fought by New Yorkers, New Englanders, Green Mountain Vermonters and even New Jerseyites- although how that last bunch of muck smelling, filthy bottom feeders ever made it through without the convenience of electric blankets and 7-11s.... ahdunno. Back to point and in answer to the question- I've spent the last 30 years under Western Skies. They've had the effect on me I'd hoped they would when I made the decisions to claim my homestead awhile back now and I consider myself an American, for which I have had the pleasure of working across this country from the Bering Sea, to the Gulf of Mexico, from the California Coast to within sight of the Statue of Liberty, across the Pacific Ocean to the islands of Hawaii, and under the auspices and protection of a United States Passport all the way to Eastern Siberia in the damn near dead of winter. Packed my gear in January and drove to Minnesota, laughed my ass off in a Wyoming Duststorm in the summer, sweat myself one sip short of heat stroke from Houston to the Salton Sea and walked away from more money on principle than most people in this country will ever make in a year. I been around some young fella, and with all due respect to you, since you posed the question, I gave you my answer. Cold, hard earned paychecks, X-ray techs, drunken rednecked foreman with a hair up their ass, cuthroat punks in the mydaddysawelder business, and makin code on a bad purge off a shaky pallet hangin by a staple 30 feet up danglin from a broke down bad hydraulic forklift don't scare me. I'm a ****in welder. Why would anyone get into this trade if they didn't understand all that, ahdunno. HillbillyDeluxe- Dude I LIKE your collection methods. Someone owed me 64K theyd sure enough be getting an impromtu visit to their boardroom meeting. That story just had me rolling. Remind me to tell you the circumstances of me getting out of Yellowknife in the North West Territories up in Canada after collecting my money [though a lot less] right before my deportation. My question to you is- how were you so convining? I had the advantage of a second stroy window to introduce them to if they didn't cut the check- RIGHT NOW-. You did say you had to collect in ND right? Thats pretty flat land as I recal. Dude you must be a hell of a lot scarier than me. Gotta hear that story over a beer sometimes if we ever get the chance and yeah I figure rooms would be a ***** but I have called ahead and theres a rathole motel for $189 tax included by the week in Williston, or I just figured to tie my hound to a trailer I'd pick up cheap and keep the valuables to a minimum. Tyler & Johny- I've seen that mancamp ad for $24 an hour with Gruss too. Sounds less inviting than Roustabouts INC in Morgan City circa 1978- mimimum wage at $3.50 hour and if you worked 100 hours a week they didn't charge you for grits- 36 hour shifts baggin mud and the driver in the van had to pick you up off the gravel in the parking lot at the end of your shift to get you back to the bunk- if you were lucky- otherwise they'd just leave you sleep there in the dirt. Course being 23 at the time that crap rolled off me like sweat from a well stroked Winnemucca bar girl but I don't need the company of that many shackled up tryin to make a buck young bucks- that whole scene sounds about one step ahead of a Kansas City Sherriff with a warrant out for yer ass- no fun at all. But don't be puttin down fat girls- it's just impolite and some of em might get their feeling hurt. Besides, enough whiskey and North Dakota winter might just have you thinking her $40 Govt. Mule Ass is every bit a piece of heaven as a Hollywood Starlet on an Exctasy Binge with lust in her eyes and your name on her lips. Port in a storm boys, port in a storm. Now, Weaver, best for last I guess and I thank you for speaking up. I've followed your threads and commentary for awhile now as sort of the sober and most diretly informed in this region and was hoping you might venture an opinion. Doesn't sound all that promising around up there and having an in would naturally make all the difference. Hell, even a paid for customer list wouldn't neccessarally mean much to a tool pusher who didn't know you from Adam and was having a bad day. Besides, you're probably asking a good dollar for your contacts and as worthwhile as the purchase might be it would only be a small portion of the investment a guy would have to make to establish himself in the arena. Ah, well, it's not all bad news. Checked the advertisements for solicitations this afternoon, couple more projects coming up with my scope worth looking at. I only asked the question originally, cause, well I always got a backup plan and know where the alley door leads to. Thanks for letting me ramble on a bit. Good way to start shakin off the winter's doldrums. Hope no offense was taken- as none was meant. I'm just a naturally mouthy and 1st Amendment practicing kind of S.O.B. You guys be safe and watch yer brothers back. "Here's to Skinny Women and Fat Paychecks".
Cactus-
Thanks for your follow through on this thread and providing some specifics. A good backup plan is worthless without details- maybe you'd find the time to fill in a few of the details on conditions for successfull ventures in ND. General Liability- is that a 1mill/2mill or 2mill/5mill coverage? As a licensed contractor I carry a 1mill per ocurrence 2mill umbrella. Is that coverage sufficient? The service agreements with the drilling and gas companies: can you indicate the procedures for getting those in place? What get's the ball rolling- just drop off a card with a tool pusher and get your name on the list? Contact a field or main corporate office with ones contact information? Is there a central publication or source of solicitations for welding contractors to reply to and apply for those agreements? Which drilling companies in that region do you find the most reliable and easist to work with in terms of access to the people you need to speak to, especially in getting paid? Is the work generally cost/plus, time and material or a straight hourly charge? What is the first steps in getting those agreements established and are th terms of those agreements whoppingly one sided in the drilling companies favor or are they equitable? Beyond a contractors bond, is there ever need to provide performance bonds on the work most guys do? Do the agreements generaly require the welding contractor to provide steel or construction materials or is that provided and the welder just provides the skill, consumables, fabrication and welding? If a piece of equipment like a crane or forklift is needed is that something the welder or rig operator is going to suppy? I am not too concerned with suppy costs- I operate with credit accounts with all my suppliers from steel to fasteners and consumables, with generally larger credit limits, an excellent payment history [try to keep them better than net30, and they love me for it] so I don't think credit would be an issue in setting up accounts. As far as bankroll- an early life experience with deep poverty annealed and traumitized me sufficiently to acquiring and protecting a checking account balance that would protect me for at least a year. If I can't see keeping my mortgage and bills paid out of savings for at least 6 months I get real anxious, so I'm confident I've got that float covered. Do guys ever work under other welders service agreements? For example as employees to those such as yourself, Hillbillydelux or Weaver? Do your guys work split check or straights contract hourly? Do you pay them as subs or employees? Do they carry the same insurance but not the service agreements? Can you spell out the agreements and pay arrangements in those relationships?
I don't discount the difficulty of the region for one second. The fact that I'm not even considering exploring this untill at least the early spring should indicate I'm either smart enough or chicken enough to wait until the weather begins to show some hope of becoming livable- by getting up to maybe just the high 20s by noon- before I'd consdier checking it out tells you I respect the difficulty of working there in the winter and that I'd prefer to avoid as much of that pain as I can. ND is basically a 2-3 day drive for me as compared to a 5-6 day bust to Tx or LA so geographically it make more sense. As far as easier... well I've always been partial to easy women but they can be just as dissapointing as an easy paycheck. Anyhow, I'm not one to trip down the primrose path and I like to do as much recon as possible before making a decision. Boomtown certainly has it's drawbacks but has always provided opportunities as well. There is even a psychiatric term for some of the effects of economic conditons in place in ND- it's called Gillete Syndrome- not kidding, google it up. Should you or others find the time to answer any of the questions I've asked I'd appreciate it. Again, thanks in advance and feel free to PM or email me if you'd prefer to keep it confidential.