Proposal disclamers

Status
Not open for further replies.
S

SmithBuilt

Senior Member
Location
Foothills of NC
What type of disclamers or conditions do you put in an estimate?

For example.
-If the cost of materials varies more than 5% from estimate date I have the right to adjust contract price.
-Payment is due on certain date, after that I charge 2% per month.
-Sealing roof penetrations are not include in this estimate.
-Allowances.
-Rock clause for trenching.


I'm sure there are many others. I'm just trying to be sure I have all the bases covered.

Tim
 
480sparky said:
Try looking at Mike's sample:

Proposal
Click to expand...

looking at that proposal it makes me wonder...do you guys here actually submit lenghtly proposals like that? I mean typically I try to get my proposals onto one page, just curious if any of your proposals require a binder.
 
nyerinfl said:
looking at that proposal it makes me wonder...do you guys here actually submit lenghtly proposals like that? I mean typically I try to get my proposals onto one page, just curious if any of your proposals require a binder.
Click to expand...

It all depends on what kind of job it is. On cookie cutter retail stuff I submit an 65 point scope letter detailing out everything I think needs to be covered. The out town contractors love this type of detail, especially if they don?t know you from Shinola. It keeps it all apples to apples.

On my local clients who do the bigger stuff, I have scope letters that are specific to those contractors that range from 1-2 pages based on the job and items that I know come up with each one of them. The PITA GCs get the binder proposals.
 
nyerinfl said:
looking at that proposal it makes me wonder...do you guys here actually submit lenghtly proposals like that? I mean typically I try to get my proposals onto one page, just curious if any of your proposals require a binder.
Click to expand...

Yes, a lengthly proposal is good because most people are to lazy to read much past the first page.

I include a note before the signature section that states "I the Homeowner/Contractor have read and fully understand the terms of this proposal".

I have never seen anyone read the whole thing so I can feel free to add whatever terms I like. If necessary I will then explain these terms to the owner/contractor. People are stupid, use it. :grin:
 
Here is a couple more.

Exclusions:
Concrete cutting, coring and patching.
Concrete pole bases. Precast or cast in place.
Ductbank concrete and reinforcement steel.
Excavation, backfill, compaction and landscaping.
Drywall patching, painting, damage to wall coverings and or ceiling tiles.
 
In the last couple of years I've had to add this to my proposals:
" Company name" will only begin rough-in when all framing, including fire stopping, drywall back-up, blocking and bulkheads, is complete and ready for drywall.
All work areas must be broom clean, free of debris, stored materials and free access to all walls and areas to be wired must be maintained. Company name will broom clean all work areas each day."
Because of some contractors' annoying habit of calling me to begin projects they think are ready, and I arrive to find unfinished framing, plumbing, duct work and a job that looks like a bomb went off with debris everywhere and crap leaning up against all the walls. Nothing ticks me off more (almost nothing else).
 
Last edited:
-cutting, patching, or painting by others
-location of underground utilities by others
-relocation, removal, or repair of underground utilities by others
-removal of rock or any unforseen obstructions is not included
-removal of soils based materials by means other than that specifically included is excluded
-drilling, jackhammering, hoe-ram, blasting, or other specialized means of removal is not included
-temporary lights will be installed with bulbs one time; repair, relocation, and replacing of bulbs is not included
 
"All warranties are void upon payment of invoice."

nyerinfl said:
looking at that proposal it makes me wonder...do you guys here actually submit lenghtly proposals like that? I mean typically I try to get my proposals onto one page, just curious if any of your proposals require a binder.
Click to expand...

It's absolutely necessary these days. Gone are the business deals made over a 3-martini lunch and a handshake.
 
Included:
Concrete cutting, coring and patching.
Concrete pole bases. Precast or cast in place.
Ductbank concrete and reinforcement steel.
Excavation, backfill, compaction
drilling, jackhammering, hoe-ram, blasting, or other specialized means of removal is not included (its all rock here)

Excluded
landscaping.
Drywall patching, painting, damage to wall coverings and or ceiling tiles.
cutting, patching, or painting by others


Should add this one:
temporary lights will be installed with bulbs one time; repair, relocation, and replacing of bulbs is not included

I also EXCLUDE "task lighting". OSHA mandates 5 foot candles, and that is all they get, if the painter needs more light, he needs to bring his own. How many times have you heard "the painter needs more light so the paint will match"? Yeah like they mix it on site...
 
SmithBuilt said:
What type of disclamers or conditions do you put in an estimate?

For example.
-If the cost of materials varies more than 5% from estimate date I have the right to adjust contract price.
-Payment is due on certain date, after that I charge 2% per month.
-Sealing roof penetrations are not include in this estimate.
-Allowances.
-Rock clause for trenching.


I'm sure there are many others. I'm just trying to be sure I have all the bases covered.

Tim
Click to expand...

Some commentary on your items...

You can play around w/ the cost of materials statement or you can cover that in your quotation. GCs don't read and therefore they'll miss that statement. Since it's a given that they'll miss it, IT WILL become heartburn later. Factor the potential into your materails quote and if nothing else, use those dollars to finance your material purchases.

Charging 2% for the cost of money??? Man... you're cheap! As a baseline, I'd use what money costs you plus 2% - minimum.

Good w/ the roof penetration bit...

I'd note any/all allowances and be very specific about referencing them.

Wanna really cover your bases??? Make sure your customer actually reads it.

Whatever you end up disclaiming, be very familiar w/ it and have an action plan/suggestion for the GC to deal w/ it i.e. concrete cutting or like pole bases. Tell the GC that he can do concrete cheaper than you and therefore you've left that to him - you know what I mean.

You're div 16, not landscaping irrigation. Be specific about it. I'm convinced the dummies in construction somehow reverse filter to the top i.e. the GC level. Train them to eat from your hand and you win!
 
Last edited:
My proposals are typically quite lengthy in order to avoid any misunderstandings.
-Trash removal by others.
-Overtime caused by other trades or job delays to be billed at $x.00.
-All work to ber performed during normal working hours, Monday through Friday.
-Include a list of drawings used with dates, addendums, etc.
-Be specific about contriol wiring and HVAC disconnects and starters.
-Who cuts and patches?
 
We have a lot of disclamers in our contract

drywall repair - patching and painting by others is a big one

also
no lawn repair by us
no siding repair

a lot or people dont realise that we are electricians and not a handy man


we do a really wide variety of work from yard post lights to factory work
but we still never seem to be able to cover everything
 
831 said:
You can play around w/ the cost of materials statement or you can cover that in your quotation. GCs don't read and therefore they'll miss that statement. Since it's a given that they'll miss it, IT WILL become heartburn later. Factor the potential into your materails quote and if nothing else, use those dollars to finance your material purchases.
Click to expand...
I use to do just that, but now with copper prices skyrocketing quickly at times I don't feel comfortable. I'm really concerned with shortages in materials. This is a new global economy and if there is a real shortage or oil gets short and goes way over $100 per barrel I want to be covered.

831 said:
Charging 2% for the cost of money??? Man... you're cheap! As a baseline, I'd use what money costs you plus 2% - minimum.
Click to expand...
What do you mean be cost of money? I'm charging 2% per month which is 24% per year. Even that amount may not be legal in other states, it is legal here in NC.






Great info guys!
ITO would you consider posting or PM me the 65 points you cover?
Thanks,
Tim
 
831 said:
Charging 2% for the cost of money??? Man... you're cheap! As a baseline, I'd use what money costs you plus 2% - minimum.
Click to expand...

You may want to check your state laws on how much you can charge per annum.

1%/month works out to 19.change%/year, so even 2% may be over some state-imposed limit.
 
Status
Not open for further replies.
Top