Page 1 of 4 123 ... LastLast
Results 1 to 10 of 35

Thread: Contractor wants me to sign a contract, but it sounds like I can get screwed.

  1. #1
    Join Date
    Jan 2007
    Location
    Florida
    Posts
    21

    Contractor wants me to sign a contract, but it sounds like I can get screwed.

    Just wondering if its customary for a contractor to have subs sign contracts. I usually have a contract that the contractor/home owner would sign with the price that we agreed on in it, but I haven't had a contractor give me a contract for me to sign. On the contract, it makes it sound like I'm working for him and Im waving a lot of rights. It says that if the home owner does not pay him, then me as the sub is pretty much on my own. just wondering if it sounds fishy or if this is normal.
    here is some of the verbiage:

    5. Payment: Contractor will pay Subcontractor in accordance with the Payment Arrangement, attached and incorporated into this Agreement as “Exhibit B”, if, as and when the Contractor receives payment from the Owner for the Subcontractor’s work. If the Owner fails, for any reason, to pay Contractor for Subcontractor’s work, Contractor shall not be liable to Subcontractor for any such sums. If Contractor has advanced any monies not yet due to Subcontractor under the Payment Arrangement, such monies shall immediately be returned to Contractor if Subcontractor is terminated for any reason.

    8. Bond: If the Subcontract amount exceeds the sum of $100,000.00, Subcontractor shall provide a 100% Payment and Performance Bond on a surety licensed to issue such bonds in Florida and reasonably acceptable to Contractor.

    11. TIME IS OF THE ESSENCE IN THIS AGREEMENT: The Project must conform to a strict schedule. Contractor has provided Subcontractor with a Project Schedule, attached and incorporated into this Agreement as “Exhibit D.” If Subcontractor’s performance is or may be responsible for delaying the Project Schedule, Contractor may immediately supplement Subcontractor’s forces, and charge the cost of same to Subcontractor, or terminate this Agreement.

    12. Contractor’s Remedy for Breach: If Subcontractor fails to perform under this Subcontract, either by failing to meet the Project Schedule or failing to perform the work in a manner acceptable to the Contractor or the Owner; the Contractor may terminate this Agreement and finish the Subcontractor’s Work by whatever method the Contractor may deem expedient. Termination shall be by written notice to the Subcontractor and shall be without prejudice to any other remedy the Contractor may have under the law or this Agreement. If the unpaid balance of the Subcontract Sum exceeds the expense of finishing the Subcontractor’s Work and other damages incurred by the Contractor and not expressly waived, such excess shall be paid to the Subcontractor. If such expense and damages exceed such unpaid balance, the Subcontractor shall pay the difference to the Contractor.

    13. Termination for Cause: Upon termination of this Agreement for cause, Contractor will not be liable for any payments not already made to Subcontractor under the Payment Arrangement. If Subcontractor is responsible for any delays in the time and sequence of the schedule, Subcontractor shall pay Contractor for all costs and damages suffered by Contractor as a result of such delays, including any damages or liquidated damages charged to Contractor under the Prime Contract.

    14. Termination for Convenience: At any time, the Contractor may terminate this Agreement for the convenience of the Contractor. The Subcontractor’s sole remedy shall be payment of full value for all work properly performed or materials delivered, plus reasonable profit thereon (defined to be no more than ten (10%) percent), less all payments Subcontractor has previously received on account of work performed to the date of termination. Subcontractor waives all claims for damages, including lost or anticipated profits, arising from or related to any such termination by Contractor. If the Prime Contract is terminated for any reason, Contractor shall notify Subcontractor in writing within two (2) business days and Subcontractor shall immediately stop work upon receipt of said notice. At the option of the Owner and Contractor, this Agreement may be terminated for convenience or assigned to the Owner.
    Last edited by oscarcolumbo; 07-09-18 at 07:03 PM.

  2. #2
    Join Date
    Jul 2003
    Location
    New Jersey
    Posts
    25,802
    Sounds like legal mumbo jumbo to me but also somewhat boiler plate. As a sub you can cross out any part of the contract you don't agree with and initial it. The GC might reject it however. My boss goes though our lengthy contracts and crossed out many provisions that he finds unfair. Then the deletions are open to negotiation. If the contract remains grossly unfair he won't take the job.
    Rob

    Moderator

    All responses based on the 2014 NEC unless otherwise noted

  3. #3
    Join Date
    Jun 2003
    Location
    NE (9.1 miles @5.07 Degrees from Winged Horses)
    Posts
    9,942
    Are you offered a Kiss anywhere in there? I prefer a bit of foreplay myself.


    Some have suggested in other similar threads that you do not have to sign the contract offered to you. Make changes to it and offer it back to them.
    Tom
    TBLO

  4. #4
    Join Date
    Apr 2007
    Location
    Huntington Beach, CA (19 Hrs. 22 Min. from Winged Horses)
    Posts
    6,659
    Quote Originally Posted by oscarcolumbo View Post
    Just wondering if its customary for a contractor to have subs sign contracts. I usually have a contract that the contractor/home owner would sign with the price that we agreed on in it, but I haven't had a contractor give me a contract for me to sign. On the contract, it makes it sound like I'm working for him and Im waving a lot of rights. It says that if the home owner does not pay him, then me as the sub is pretty much on my own. just wondering if it sounds fishy or if this is normal.
    here is some of the verbiage:

    5. Payment: Contractor will pay Subcontractor in accordance with the Payment Arrangement, attached and incorporated into this Agreement as “Exhibit B”, if, as and when the Contractor receives payment from the Owner for the Subcontractor’s work.

    8. Bond: If the Subcontract amount exceeds the sum of $100,000.00, Subcontractor shall provide a 100% Payment and Performance Bond on a surety licensed to issue such bonds in Florida and reasonably acceptable to Contractor.

    11. TIME IS OF THE ESSENCE IN THIS AGREEMENT: The Project must conform to a strict schedule. Contractor has provided Subcontractor with a Project Schedule, attached and incorporated into this Agreement as “Exhibit D.”

    14. Termination for Convenience: At any time, the Contractor may terminate this Agreement for the convenience of the Contractor. The Subcontractor’s sole remedy shall be payment of full value for all work properly performed or materials delivered, plus reasonable profit thereon (defined to be no more than fifteen (15%) percent), less all payments Subcontractor has previously received on account of work performed to the date of termination. If the Prime Contract is terminated for any reason, Contractor shall notify Subcontractor in writing within two (2) business days and Subcontractor shall immediately stop work upon receipt of said notice.
    your agreement had too many words. i fixed it for you.

    you're welcome.
    ~New signature under construction.~
    ~~~~Please excuse the mess.~~~~

  5. #5
    Join Date
    Dec 2006
    Location
    Eastern Oregon
    Posts
    3,594
    Quote Originally Posted by infinity View Post
    Sounds like legal mumbo jumbo to me but also somewhat boiler plate. As a sub you can cross out any part of the contract you don't agree with and initial it. The GC might reject it however. My boss goes though our lengthy contracts and crossed out many provisions that he finds unfair. Then the deletions are open to negotiation. If the contract remains grossly unfair he won't take the job.
    We do the same at our shop.

  6. #6
    Join Date
    May 2005
    Location
    Richmond, Virginia
    Posts
    23,346
    I would not take a job with those conditions. Whomever hires me is responsible for paying me.
    Code references based on 2005 NEC
    Larry B. Fine
    Master Electrician
    Electrical Contractor
    Richmond, VA

  7. #7
    Join Date
    Aug 2004
    Location
    Northern illinois
    Posts
    16,893
    As a practical matter you have to have some kind of contract or you can't do work for anybody else. It may be verbal or implied or According to some Uniform Commercial Code terms but I guarantee you that there is some contract that you're working under. There's nothing wrong with the contractor asking for terms he would like. There's nothing wrong with you being unwilling to accept them. This is part of every contract negotiation. If you talk to the guy and a half hour in you realize you don't want to deal with him anymore just say goodbye shake hands and leave. It's not like you are being forced to accept these conditions if you don't like them don't accept them it's as simple as that.
    Bob

  8. #8
    Join Date
    Feb 2007
    Location
    USA
    Posts
    5,737
    If you strike out too much you risk loosing the contract.
    Better off adding an addendum that supersedes the contract that you can live with.

  9. #9
    Join Date
    Feb 2007
    Location
    USA
    Posts
    5,737
    Quote Originally Posted by oscarcolumbo View Post

    14. Termination for Convenience: At any time, the Contractor may terminate this Agreement for the convenience of the Contractor. The Subcontractor’s sole remedy shall be payment of full value for all work properly performed or materials delivered, plus reasonable profit thereon (defined to be no more than ten (10%) percent), less all payments Subcontractor has previously received on account of work performed to the date of termination. Subcontractor waives all claims for damages, including lost or anticipated profits, arising from or related to any such termination by Contractor. If the Prime Contract is terminated for any reason, Contractor shall notify Subcontractor in writing within two (2) business days and Subcontractor shall immediately stop work upon receipt of said notice. At the option of the Owner and Contractor, this Agreement may be terminated for convenience or assigned to the Owner.
    Why the heck would anyone sign such a BS clause. This contractor can always let you go and screw you from at least 10%.

    Don't most contractors charge at least 10% OH and another 10% profit at a minimum these days.

  10. #10
    Join Date
    Mar 2007
    Location
    Valdosta, GA
    Posts
    4,137
    Don’t sign anything that doesn’t include a schedule of values for payment that you specify.

    Don’t sign anything that limits your profit.

    Don’t sign anything with an at-will termination clause.

    Don’t sign anything that doesn’t include an arbitration clause.

    Have an attorney review and explain what you’re signing.

    Contracts are negotiable.


    Sent from my iPhone using Tapatalk
    Brought to you by Carl's Jr.

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •