Need contract advice.

[knoppdude]

What would you guys do in this situation? There is a small community theater in town that is owned by a retired engineering contractor, but managed by a theater company. All of the exterior lighting is out on one of their buildings, and they want this fixed. I have gone over once to attempt to trouble shoot the problem, but an hour later a bus load of children arrived to view a play, and I was shut out of access to the electrical room. I was told that the only day that this would not happen is on Monday. Everything has been done verbally at this point, so I am out time, but not much. At this point, I am going to send the owner a written proposal that I perform the trouble-shooting portion of the job on a time and material basis, and when I have determined the problem with the existing lights, I will be able to give him a solid bid for the repairs, and for the installation of the additional light he asked for. This extra work would be then performed under a new contract at a fixed price. Any suggestions about idea, I have already done a small amount of work on verbal, but will not do anymore unless it is in writing. This is my first job opportunity as an independent electrical contractor, but I will not proceed any further without a written contract. What do you guys think of my approach? Thanks for all comments.

 

[augie47]

Follow your instincts.
They don't seem to be that interested in the repair or they would have been more cooperative.
Your plan seems reasonable, if you want to go to that much effort for this account.

 

[lancelectric]

invoice daily and collect weekly?

 

[knoppdude]

Thanks augie47,
I agree with your advice, I think they are a shoestring operation, and I understand this, but with the general public, especially the kids, entering this building, I am going to proceed by the book to the best of my ability. I want to help them, but not at my expense, or at the risk of someones life.

 

[AV ELECTRIC]

I usually charge a price to troubleshoot a minimum of 2 hours It sometimes shows if there really interested in doing the work . you can tell them you would wave that charge if they award you the job There are very few business that dont charge something to figure out what is wrong . These are tough times so you have to feel them out like the other post said you have to have a gut instinct sometimes when bidding there are other variables that are not included on your spread sheet like how desperate you are for work whats the financial situation of the business your giving the bid to and the competition

 

[satcom]

You may not be in business very long, if you don't charge for all your work, many of the EC;s in my area will charged a fixed amount to trouble shoot, residential and small commercial jobs, the cost of this trouble shoot will usually depend on how complex the trouble shoot is, min 2 hours and up to 4 hours for a complex troubleshoot, then after they find the problem they give the customer a fixed fee repair price.
No customer wants the hear T&M , they want a fixed amount. Your in contracting, not a day labor worker

 

[bradleyelectric]

You may not be in business very long, if you don't charge for all your work, many of the EC;s in my area will charged a fixed amount to trouble shoot, residential and small commercial jobs, the cost of this trouble shoot will usually depend on how complex the trouble shoot is, min 2 hours and up to 4 hours for a complex troubleshoot, then after they find the problem they give the customer a fixed fee repair price.
No customer wants the hear T&M , they want a fixed amount. Your in contracting, not a day labor worker

here here. Now if your desperate for work you can come over and cut wood. If you need money charge as if your a business that needs to cover expenses and make a profit. If this client can't pay that then market and find ones that can.

 

[rodneee]

first off congrats and good luck. unless you want to become lawyer; i would say do not get caught up in whether you have a written contract or not as it sounds like they are ok with time and material. if they do not want to pay, you will end up in small claims court anyway with or without a contract. as your post sounds to me you are entering the service call and repair side of the industry. sell yourself with the proper personality, prompt service, and quality workmanship and you won't need to worry about contracts. tons of electrical contractors would give both there green and yellow wirenuts for what in essence is a no bid contract. if you do not get greedy you may find yourself as the only EC they call. one job leads to the next, to the next, etc etc.

 

[ccrtech]

If this business is a non profit chances are they have very limited funds especially in this economy. I don't advocate working for free, but in the past we have worked out reduced rates with non-profits in exchange for advertising or " sponsorship" as they sometimes call it. It has paid for it's self many times over in referrals. Of course the flip side of this is getting trapped working on what is probably a poorly wired facility for little profits. Of course only you can decide based on your situation if this will work for you.

 

[knoppdude]

Thanks for the responses. The owner sent an e-mail saying that my proposal sounded good to him, so I am going to have him sign a simple agreement for the trouble shooting part. I am not out to cut a fat hog, just to get something in writing saying he agrees to allow this, and what the hourly rate is. I talked with the city building department, and they require no permit for this type of work, so hopefully I can find the problem without too much trouble. Fixing it will require a permit, and I will be able to give him a set price bid. Thanks for all your input.

 

[kbsparky]

.... Fixing it will require a permit....

Does that include replacing bad fixtures and/or light bulbs?