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Thread: outrageous and one sided contract language

  1. #1
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    outrageous and one sided contract language

    Hi all,
    I was wondering if you electrical contractors out there are seeing abusive language in subcontracts from General Contractors or owners

    I'm talking about where if you succeed in a change order you only get 10% above your actual cost, while the contractor gets 15 % overhead and on top of that 10 % profit.

    Or contractor will not pay subcontractor for a change order unless paid by the owner first. Even if a signed change is agreed to

    Or
    At any time after execution of the contract the owner or contractor can require a 100% performance bond at the cost of the subcontractor.

    If the owner escalates the time schedule the subcontractor will provide extra workers or overtime without extra charge.


    Stuff like this.

  2. #2
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    First, I wouldn't agree to or sign a contractor's contract. I would leave that one on the table.
    I present my contract/terms and they either accept it or I walk. Everything in my terms is fair to all parties.
    If you aim at nothing, you will hit it every time!

  3. #3
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    I would not sign such either.
    My question is if others have been seeing this sort of thing.

  4. #4
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    Robbery is not a crime if you sign any kind of agreement that says the thief can take such advantage of you.

    Maybe hand it back unsigned and ask how much they expect you to have to pay them to to the job for them.
    I live for today, I'm just a day behind.

  5. #5
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    If you don't like the terms they are offering you are free to offer terms to them that you approve of. They on the other hand are free to not accept your terms. Generally speaking these things are not surprises. They are often in the specifications or contract documents that you get when you bid. If you don't like the terms that the specifications are contract documents offer you are free to propose your own terms as part of the bid.
    Bob

  6. #6
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    I don't know if you folks are aware that asking for a sub to supply a 100% performance bond some time into the atctual project is a impossibility. It cant happen. No bond company is going oi issue a new bond on work already performed. Ain't gonna happen . If it does it would be rare.

    My original question was if you contractors out there are starting to see this onerous and unethical language.
    Heck I'm not foolish enough to sign but I am sure there is someone that will.

  7. #7
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    Quote Originally Posted by flatlander View Post
    I don't know if you folks are aware that asking for a sub to supply a 100% performance bond some time into the atctual project is a impossibility. It cant happen. No bond company is going oi issue a new bond on work already performed. Ain't gonna happen . If it does it would be rare.

    My original question was if you contractors out there are starting to see this onerous and unethical language.
    Heck I'm not foolish enough to sign but I am sure there is someone that will.
    That is what business is all about these days, don't trust anyone and get whatever you can when you can, don't matter what type of business it is either.
    I live for today, I'm just a day behind.

  8. #8
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    Quote Originally Posted by flatlander View Post
    Hi all,
    I was wondering if you electrical contractors out there are seeing abusive language in subcontracts from General Contractors or owners

    I'm talking about where if you succeed in a change order you only get 10% above your actual cost,
    Our latest project has that in it in addition to the two below:

    Only materials installed can be invoiced per the SOV, not materials stored on site.

    Owner reserves the right to hire another EC(s) to do a portion of the project, and we are required to give a credit for the work we bid, but didn't perform.

    These are the ones that stick out in my mind...

  9. #9
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    Quote Originally Posted by flatlander View Post
    I would not sign such either.
    My question is if others have been seeing this sort of thing.
    Yes.... not on a regular basis though. Just don’t sign it; everything is negotiable. If not, then walk away.

    I haven’t seen the language about a performance bond being required after the fact though.

    The language I see the most that I won’t agree to is the change-order T&M + 10%, and trying to stretch the payment terms, which a lot of GC’s seem to be trying to do now. They’re (owners) trying to add a lot of change-orders after the job starts that should’ve been in the original scope, limit your markup, and then hold that money until the project is complete. So basically the owner wants you to finance part of the job at 0%. If you read your job specs the contract between the owner and GC is typically included there, and you can see what BS they’re trying to force on the GC, and right on down to you.


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  10. #10
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    outrageous and one sided contract language

    Quote Originally Posted by Cow View Post
    Our latest project has that in it in addition to the two below:

    Only materials installed can be invoiced per the SOV, not materials stored on site.
    Alright then, let’s wait to order fixtures and gear until it’s time to install, and then we can all sit for 8/wks while waiting on them to show up!

    Quote Originally Posted by Cow View Post
    Owner reserves the right to hire another EC(s) to do a portion of the project, and we are required to give a credit for the work we bid, but didn't perform.

    These are the ones that stick out in my mind...
    I guess you had to provide a cost on every phase up-front? I’ve never seen this in a contract but I had an instance where the GC wanted to use another contractor for a portion of the work I was going to sub out before we signed a contract; I deducted the amount but was able to roll all my O&P for that work into the scope we were left with. Which I was completely fine with as it was one less bill we had to pay but still made the money.



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