Why cost plus and time & material contracts should be avoided, for both contractors and building owners.
Contracts
Unclear Change Work Orders
Pricing changes for a change work order isn’t easy when the scope of work isn’t clear.
Time and Material Woes
Time and Material contracts are full of risk, especially on larger jobs.
Protect Your Time
Some people are used to snapping their fingers and having others jump. It’s irritating, but you have to remember that they’re writing the checks.
Protecting Yourself from the Protector
I’m not a fan of working with government agencies, but some situations are unique.
Final Payments and Guarantees
When clients try to change the terms of the contract, you don’t have to go along.
Contract Language That Puts You at Risk
Over the years, I’ve seen contract language evolve, shifting more and more responsibility to general and specialty contractors.
Handyman vs Service Agreement
Is it a good idea to have a service agreement to cover small jobs under a certain amount?
Protect Your Business – Get Paid
Avoid losing money by recognizing some of the games that building owners play to avoid paying.
Protect Your Business – Change Work Orders
Michael discusses a ploy some building owners use to not pay for all of their change work orders. It happens in both residential and commercial projects.
Overhead and Profit on Change Orders
You shouldn’t sign a contract that stipulates what you can charge, even if it’s just on the change orders.
Design Agreements Gone Awry
We discussed design agreements last week; today we’re going to look at them from another angle. The first step is setting the budget with the client.
Protecting Design Work
A contractor who has designed projects asked how to protect his design work.
Dodging Payment
There are things you can and should do when a client tries to dodge making payments.
Pricing Handyman and Service Work
There are two schools of thought on pricing handyman projects and service work: time and material (T&M) pricing or upfront (flat rate) pricing. They both have advantages and disadvantages.
Quality Standards
“Let’s see what the contract says about that.”
Dishonest Clients
We often hear from contractors dealing with a client who, for whatever reason, has decided to change the terms of their contract. Other professionals have the same problem.
Collecting Payment When Due
Not all of your clients are honest. There are even a few who have no intention of paying you for the work you do.
Cost Plus with a “Not to Exceed”
A contractor asked for my opinion on a request he recently received. It’s not a win-win proposition.
Let Them Know What to Expect
If you’re doing service work, make sure your client knows what to expect before you start.
