Contract Comedy

[Power Tech]

Posted for your entertainment.

I really got a laugh, this is 1 of 5 pages.

It's taken 3 weeks to get this abomination to me.

Exhibit A is their scope of work.

Exhibit B is my scope of work.

I wrote back telling him surplus funds to you is profit to me. There will be no money to refund on this project.

My quote is anticipated costs.

The sad part is it probably took 3 times the cost of the job to write this.

Had to X out over half the contract.

 

[LarryFine]

Why does Paragraph B read like you're not supposed to make a single penny on the job?

 

[Power Tech]

Why does Paragraph B read like you're not supposed to make a single penny on the job?

Exactly. This is how they are going to spend the stimulus money. 2/3 to the lawyers and 1/3 to do the work. And then litigation to fight over the other 1/3 they pay us.

 

[nhfire77]

sur⋅plus
  /ˈsɜrplʌs, -pləs/ Show Spelled Pronunciation [sur-pluhs, -pluhs] Show IPA noun, adjective, verb, -plussed or -plused, -plus⋅sing or -plus⋅ing.
Use surplus in a Sentence
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–noun
1. something that remains above what is used or needed.
2. an amount, quantity, etc., greater than needed.

3. Accounting.
a. the excess of assets over liabilities accumulated throughout the existence of a business, excepting assets against which stock certificates have been issued; excess of net worth over capital-stock value.
b. an amount of assets in excess of what is requisite to meet liabilities.

The contract price is not an asset, its a payment.

I would need 100% of the payment to meet the liabilities, including my PROFIT.

 

[jes25]

The contract price is not an asset, its a payment.

The contract price after the work, or a portion of the work is completed, is by defintion an asset; ie. cash, A/R

If for some reason you recieved the payment before work was completed it would be classified as unearned revenue, a liability account.

 

[Power Tech]

I am requiring them to delete #4 Non Allocation of Funds?

It sounds like they do not have funding. 30 days notice?

This is a 2 day job.

 

[bradleyelectric]

Do they need a signed contract in order to get allocation of funds?

 

[jason sleeth]

Another Funny Contract

Another Funny Contract

When meeting with a contractor for a commercial job he brought in a competitors bid. Instead of quoting the light fixtures the competitor listed an allowance for the lighting fixtures. The allowance was less than the cost of the fixtures specified on the blue print. We showed the builder three quotes from three reputable suppliers that showed that the cost of the fixtures before tax and mark up exceeded the allowance of the other bidder. To make things worst the other bid only specified providing junction boxes for fixtures. There was no labor in installation of the fixtures. The contractor said he was accepting the other bid because it was cheaper.

Months later I decided to contact the owner for whom the general contractor was doing the work for. He was not pleased to hear that the general contractor awarded the work to the other electrical contractor who was now charging many extras.

All in all I should of followed up with the owner and went around the general earlier, we might of landed the job. Ethically, I can't believe a company would intentionally leave cost out of a bid and be this misleading to their customers.

Lesson learned for all.

 

[LarryFine]

Ethically, I can't believe a company would intentionally leave cost out of a bid and be this misleading to their customers.

I still haven't figured out how they get the GC or owner to agree to pay them for the extras.

 

[zog]

A 5 page contract, ahhh I wish, working on a 350 pager this week.

 

[nhfire77]

The contract price after the work, or a portion of the work is completed, is by defintion an asset; ie. cash, A/R

If for some reason you recieved the payment before work was completed it would be classified as unearned revenue, a liability account.

Yes this is true. That was not what I was getting at.

The money they owe us is a payment, no one can tell me what my assets are and that I have excess assets. I am a capitalist, the only thing I have excess of is some fat

 

[Power Tech]

Do they need a signed contract in order to get allocation of funds?

I ask them about that. "Do you have funding or not".

It's a 2 day job.

I can see it now. After I finish the job, 30 days later they notify me they didn't get funding.

 

[Power Tech]

A 5 page contract, ahhh I wish, working on a 350 pager this week.

These guys are smarter, they don't need to use as many words to cheat me.

350 pages? Not real.

The people I am used to dealing with do million dollar deals with a handshake. Very honest, never try to get the best of you. Never had a non payment.

I do not advertise and am not in the book. Lately I have been asked to bid jobs because companies doing work in the area get my number through referral.

IMO these people have no mother, sense of decency, and should be ashamed of themselves.

I guess they figure; We have these lawyers on retainer, we might as well use them.

 

[mivey]

I ask them about that. "Do you have funding or not".

It's a 2 day job.

I can see it now. After I finish the job, 30 days later they notify me they didn't get funding.

Then I'd make sure someone was on the hook before starting.

Do they define "actual cost" and how it is to be tracked?

 

[Power Tech]

Then I'd make sure someone was on the hook before starting.

Do they define "actual cost" and how it is to be tracked?

Yes they do: Actual costs would be to run 2 cat 6 750'? The longest run I have had certified is 425'. I would run copper instead. There is a wide gap of scope of work in their request for quotation (exhibit A) and my scope of work (exhibit B).

Tracking; They have an audit clause. It is a prevailing wage job. It says they can have access to my office to check the books and make sure the money was spent in accordance with exhibit A.

If it costs me more to do the job, too bad.

If I make money they want it back. I'd be lucky to get wages with a contract like this.

 

[QES]

This is more of a "Time and material" contract.

 

[RH1]

When meeting with a contractor for a commercial job he brought in a competitors bid. Instead of quoting the light fixtures the competitor listed an allowance for the lighting fixtures. The allowance was less than the cost of the fixtures specified on the blue print. We showed the builder three quotes from three reputable suppliers that showed that the cost of the fixtures before tax and mark up exceeded the allowance of the other bidder. To make things worst the other bid only specified providing junction boxes for fixtures. There was no labor in installation of the fixtures. The contractor said he was accepting the other bid because it was cheaper.

Months later I decided to contact the owner for whom the general contractor was doing the work for. He was not pleased to hear that the general contractor awarded the work to the other electrical contractor who was now charging many extras.

All in all I should of followed up with the owner and went around the general earlier, we might of landed the job. Ethically, I can't believe a company would intentionally leave cost out of a bid and be this misleading to their customers.

Lesson learned for all.

Unfortunately the lesson I've come away with is the shady contractor got the job.
.

 

[Power Tech]

This is more of a "Time and material" contract.

Yah, and if it takes me more time and material it's on me.

I would be lucky to get T&M out of it.