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Will You Add? - Dealing With The Contract For Construction
A customer recently emailed us about his job search success.“After landing a job in just 2 weeks, I realize now that finding a job is really a very simple process. You just have to realize that someone is out there with a job, waiting for you to come along. All I had to do was to get the two of us together.”Knowing there’s a job out there just waiting for you sounds great. Unless you’re TWISTNG IN THE WIND because you can’t get hooked up with the right position.Maybe you’ve been fired and you’re getting desperate. Maybe you’re jammed up in your current job with no moves left. Or you’ve faithfully followed a lot of traditional job search advice and nothing works.There are few of us who don’t worry about our job. And with good reason. It provides the fuel that fires what’s important to us in life.A job is not just “what we do.” In many ways it’s who we are. Much of our life is defined by how we
Again, the terms of payment may be as elaborate as you care to make them. I always recommend that any and all payments be tied to performance of some specific milestone or event, such as: xx% down; xx% upon completion of foundation work and backfilling; xx% upon completion of rough framing and exterior enclosure; etc...Trust me, your contractor may not like this, but be adamant. You have NO OTHER "stick to beat them with" except your checkbook! Use it firmly but fairly. Once again, a reputable and honest contractor should have no problem with this: it is actually to their benefit, as it clearly defines when they are going to get paid as well! If they want to get paid, they have to perform. Simple as that.
Last but not least, include places for all parties involved to sign and date the Contract. In the case of a private property, all persons listed on the title should sign (husband and wife both, all partners, etc.). In the footer, include a statement detaili
To stand out in a cluttered world, become a recognized expertThere are millions of small businesses vying for our attention. Yet, because the marketplace is more discriminating and skeptical, it's hard to get noticed. To enjoy the greatest return on your marketing efforts, you need to rise above the crowd. You need an edge over the competition. In short, you need to become slightly famous by establishing an expert reputation.Not so long ago, expertise was equated with the number of years you were in business or the college diploma that hung on your wall. That has changed as people have come to be more interested in results. If you can deliver, people will be interested in you no matter how brief your business experience or how bare your walls are of diplomas.Experts are sought after. They get more business with less effort and command higher fees. Journalists come to them for information. They are asked to speak at
The first concept to get your head firmly wrapped around is this:
If you didn't get it in writing, it NEVER HAPPENED. Period.
This is so important, I can't stress the concept enough. I don't care if it's your brother's buddy or your Uncle John- a construction project where money changes hands in return for work is a Business Arrangement, and should be dealt with accordingly. If not, you can leave yourself open to a huge risk of loss, both financially and spiritually! No reputable contractor will have any problem whatsoever with preparing and executing a written agreement on a project- no matter WHO they are to you personally; In fact, they will admire and respect your intelligence and responsibility. You see, a properly drafted contract protects them as much as it does you...
The actual Contract need not be elaborate, but there are certain sections that are vital. The first is the names of the parties or entities executing the agreement, the date the agreement is being entered into, and the legal description of the property being improved. If it is an established structure with a postal address, that full address is usually sufficient. If raw land or an unimproved lot, you will need to list the survey information which includes: the County, Township, Section, and Range, among other details. You can get this information from the title or deed, or from your local County or Township Government offices.
Second, you should clearly list the entire scope of work. If you are acting as the General Contractor, you will need to prepare a separate contract for each Sub-Contractor. If you don't have drawings and specifications for the project, you will want to list exactly what you are expecting to be done: for example, remove and dispose of existing kitchen countertops; Provide and install new countertops and 4" back splash as manufactured by [insert vendor], style [insert style and type], color [insert color]. You don't need to list every screw and nail, however the "standard of work" statement "All work shall be performed in a competent, workmanlike fashion, following accepted industry trade practices" should be included. This allows you to have an impartial third party expert inspect the work and give an opinion as to the suitability of the work in case of a dispute or before making final payment (see chapter on close out).
A quick and clean way to enumerate the scope of work is to attach the quote to the contract as "Exhibits". If you are satisfied that the quote you received from your chosen contractor is detailed enough, simply call it out in the contract, for example: All work to be as per the quote for [short description here], prepared by [contractor name], dated [date here], which is hereby attached as [exhibit A, B, etc...] and is/are included by reference. If you have drawings, include a reference to them as well, and list all pages, such as: "[And/Or] as per the drawings and specifications as prepared by [Architect or designer here], dated [date here], [revisions if any], sheets [list all: A-1, A-2, E-1, etc...], and is/are included by reference. After the detailed scope of work, remember to include the "Standard of Work" statement from the last section!
Third, list any special conditions for the project, such as the process for dealing with change orders, working times, Insurances to be provided (both by the owner and the contractor), who is responsible for the permits and calling for inspections, allowability of overtime, performance schedules and/or expected date of completion, Milestone descriptions and target dates, etc... Always require a schedule from your contractor. This can be as elaborate as you like, such as a formal spreadsheet type "Gantt" chart, or as simple as a wall calendar marked up and initialed by both parties, and included by reference in the contract. This schedule must of course be somewhat flexible, and include time for weather delays, material shortages, and acts of God, among other variables, but it should NOT be open-ended!
Finally we come to the Payment terms. These should include the statement "Contractor agrees to perform all work as specified, pursuant to the terms of this contract along with all exhibits and attachments, for the sum of [list contract sum here]. to be paid as follows: [list payment schedule here]".
Again, the terms of payment may be as elaborate as you care to make them. I always recommend that any and all payments be tied to performance of some specific milestone or event, such as: xx% down; xx% upon completion of foundation work and backfilling; xx% upon completion of rough framing and exterior enclosure; etc...Trust me, your contractor may not like this, but be adamant. You have NO OTHER "stick to beat them with" except your checkbook! Use it firmly but fairly. Once again, a reputable and honest contractor should have no problem with this: it is actually to their benefit, as it clearly defines when they are going to get paid as well! If they want to get paid, they have to perform. Simple as that.
Last but not least, include places for all parties involved to sign and date the Contract. In the case of a private property, all persons listed on the title should sign (husband and wife both, all partners, etc.). In the footer, include a statement detailin
As many small-time authors and self-publishers have discovered the hard way, the traditional book publishing model is fraught with problems that conspire against an individual author/publisher making a decent living from their work.The traditional model normally involves two basic choices: 1) use a commercial publisher, or 2) self-publish.THE COMMERCIAL PUBLISHER ROUTEThis option involves the author submitting book proposals or full manuscripts to commercial publishing houses in hope of acceptance.Once a manuscript is accepted by a publishing house (the vast majority are not accepted) a contract is signed between the author and the publishing house. This kicks-off a time- consuming and often complex process involving printers, shippers, wholesalers, distributors, marketers, and finally, booksellers, all managed on the author's behalf by the publishing house.Typically, it takes anywhere fro
The actual Contract need not be elaborate, but there are certain sections that are vital. The first is the names of the parties or entities executing the agreement, the date the agreement is being entered into, and the legal description of the property being improved. If it is an established structure with a postal address, that full address is usually sufficient. If raw land or an unimproved lot, you will need to list the survey information which includes: the County, Township, Section, and Range, among other details. You can get this information from the title or deed, or from your local County or Township Government offices.
Second, you should clearly list the entire scope of work. If you are acting as the General Contractor, you will need to prepare a separate contract for each Sub-Contractor. If you don't have drawings and specifications for the project, you will want to list exactly what you are expecting to be done: for example, remove and dispose of existing kitchen countertops; Provide and install new countertops and 4" back splash as manufactured by [insert vendor], style [insert style and type], color [insert color]. You don't need to list every screw and nail, however the "standard of work" statement "All work shall be performed in a competent, workmanlike fashion, following accepted industry trade practices" should be included. This allows you to have an impartial third party expert inspect the work and give an opinion as to the suitability of the work in case of a dispute or before making final payment (see chapter on close out).
A quick and clean way to enumerate the scope of work is to attach the quote to the contract as "Exhibits". If you are satisfied that the quote you received from your chosen contractor is detailed enough, simply call it out in the contract, for example: All work to be as per the quote for [short description here], prepared by [contractor name], dated [date here], which is hereby attached as [exhibit A, B, etc...] and is/are included by reference. If you have drawings, include a reference to them as well, and list all pages, such as: "[And/Or] as per the drawings and specifications as prepared by [Architect or designer here], dated [date here], [revisions if any], sheets [list all: A-1, A-2, E-1, etc...], and is/are included by reference. After the detailed scope of work, remember to include the "Standard of Work" statement from the last section!
Third, list any special conditions for the project, such as the process for dealing with change orders, working times, Insurances to be provided (both by the owner and the contractor), who is responsible for the permits and calling for inspections, allowability of overtime, performance schedules and/or expected date of completion, Milestone descriptions and target dates, etc... Always require a schedule from your contractor. This can be as elaborate as you like, such as a formal spreadsheet type "Gantt" chart, or as simple as a wall calendar marked up and initialed by both parties, and included by reference in the contract. This schedule must of course be somewhat flexible, and include time for weather delays, material shortages, and acts of God, among other variables, but it should NOT be open-ended!
Finally we come to the Payment terms. These should include the statement "Contractor agrees to perform all work as specified, pursuant to the terms of this contract along with all exhibits and attachments, for the sum of [list contract sum here]. to be paid as follows: [list payment schedule here]".
Again, the terms of payment may be as elaborate as you care to make them. I always recommend that any and all payments be tied to performance of some specific milestone or event, such as: xx% down; xx% upon completion of foundation work and backfilling; xx% upon completion of rough framing and exterior enclosure; etc...Trust me, your contractor may not like this, but be adamant. You have NO OTHER "stick to beat them with" except your checkbook! Use it firmly but fairly. Once again, a reputable and honest contractor should have no problem with this: it is actually to their benefit, as it clearly defines when they are going to get paid as well! If they want to get paid, they have to perform. Simple as that.
Last but not least, include places for all parties involved to sign and date the Contract. In the case of a private property, all persons listed on the title should sign (husband and wife both, all partners, etc.). In the footer, include a statement detaili
Have you ever been to a seminar that was on your favorite topic and came home with pages of notes, all written in scribble scratch, because you were devouring all the speakers’ words and writing notes lightning fast?You loved the stories and powerful illustrations that set your mind on fire with ideas.Remember those break-through moments you experienced when you sat at the bar and bought your favorite Guru or Idol a drink and listened intently as they shared with you the specialized knowledge that got them to ‘legend status?’Have you experienced a seminar, so powerful your life was never the same and it changed your business for the better?I must confess, I am a seminar junkie and I love to attend seminars and meet and network with people there.But I don’t just go to any seminars. For me I attend marketing conferences on niche topics dealing with increasing your online marketing business results and m
A quick and clean way to enumerate the scope of work is to attach the quote to the contract as "Exhibits". If you are satisfied that the quote you received from your chosen contractor is detailed enough, simply call it out in the contract, for example: All work to be as per the quote for [short description here], prepared by [contractor name], dated [date here], which is hereby attached as [exhibit A, B, etc...] and is/are included by reference. If you have drawings, include a reference to them as well, and list all pages, such as: "[And/Or] as per the drawings and specifications as prepared by [Architect or designer here], dated [date here], [revisions if any], sheets [list all: A-1, A-2, E-1, etc...], and is/are included by reference. After the detailed scope of work, remember to include the "Standard of Work" statement from the last section!
Third, list any special conditions for the project, such as the process for dealing with change orders, working times, Insurances to be provided (both by the owner and the contractor), who is responsible for the permits and calling for inspections, allowability of overtime, performance schedules and/or expected date of completion, Milestone descriptions and target dates, etc... Always require a schedule from your contractor. This can be as elaborate as you like, such as a formal spreadsheet type "Gantt" chart, or as simple as a wall calendar marked up and initialed by both parties, and included by reference in the contract. This schedule must of course be somewhat flexible, and include time for weather delays, material shortages, and acts of God, among other variables, but it should NOT be open-ended!
Finally we come to the Payment terms. These should include the statement "Contractor agrees to perform all work as specified, pursuant to the terms of this contract along with all exhibits and attachments, for the sum of [list contract sum here]. to be paid as follows: [list payment schedule here]".
Again, the terms of payment may be as elaborate as you care to make them. I always recommend that any and all payments be tied to performance of some specific milestone or event, such as: xx% down; xx% upon completion of foundation work and backfilling; xx% upon completion of rough framing and exterior enclosure; etc...Trust me, your contractor may not like this, but be adamant. You have NO OTHER "stick to beat them with" except your checkbook! Use it firmly but fairly. Once again, a reputable and honest contractor should have no problem with this: it is actually to their benefit, as it clearly defines when they are going to get paid as well! If they want to get paid, they have to perform. Simple as that.
Last but not least, include places for all parties involved to sign and date the Contract. In the case of a private property, all persons listed on the title should sign (husband and wife both, all partners, etc.). In the footer, include a statement detaili
Well done! You've passed the exams, received the certificate, taken out your insurance and you're ready to open the doors in your new complementary therapy business. You are your own boss, possibly for the first time - and here's where the learning starts all over again.There are two common traps that newly qualified practitioners fall into - the first is neglecting the rest of your life. Family, your own health, finances, relaxation and leisure are the main ones, but other areas include personal development and contribution to society in general. And you will probably have your own specifics.Coaching can help you through this transition period. A coach will work with you to define your own "Wheel of Life" and ensure that it's in balance. You know what happens when your car (or cycle!) wheels are out of balance - you get a rough ride. It's even rougher when your Wheel of Life is out of balance.The second common trap
Third, list any special conditions for the project, such as the process for dealing with change orders, working times, Insurances to be provided (both by the owner and the contractor), who is responsible for the permits and calling for inspections, allowability of overtime, performance schedules and/or expected date of completion, Milestone descriptions and target dates, etc... Always require a schedule from your contractor. This can be as elaborate as you like, such as a formal spreadsheet type "Gantt" chart, or as simple as a wall calendar marked up and initialed by both parties, and included by reference in the contract. This schedule must of course be somewhat flexible, and include time for weather delays, material shortages, and acts of God, among other variables, but it should NOT be open-ended!
Finally we come to the Payment terms. These should include the statement "Contractor agrees to perform all work as specified, pursuant to the terms of this contract along with all exhibits and attachments, for the sum of [list contract sum here]. to be paid as follows: [list payment schedule here]".
Again, the terms of payment may be as elaborate as you care to make them. I always recommend that any and all payments be tied to performance of some specific milestone or event, such as: xx% down; xx% upon completion of foundation work and backfilling; xx% upon completion of rough framing and exterior enclosure; etc...Trust me, your contractor may not like this, but be adamant. You have NO OTHER "stick to beat them with" except your checkbook! Use it firmly but fairly. Once again, a reputable and honest contractor should have no problem with this: it is actually to their benefit, as it clearly defines when they are going to get paid as well! If they want to get paid, they have to perform. Simple as that.
Last but not least, include places for all parties involved to sign and date the Contract. In the case of a private property, all persons listed on the title should sign (husband and wife both, all partners, etc.). In the footer, include a statement detaili
On a recent airline flight I was an upset customer. I was arriving on a late inbound flight and connecting with the last flight out on the same airline, but the connecting flight left without me! At first, I was furious when told to wait in a line of 300 people to resolve my problem. But I used my time to "people watch", and I made some valuable observations.I saw that the customers who approached one ticket agent with a smile, sense of humor or other positive behaviors were walking away in a positive state. The agent looked and sounded kinder and more empathetic when helping those folks. The customers who approached another agent with a visibly sour attitude seemed to evoke a negative response from the agent, and they walked away looking angry.Both sets of people had similar intentions - to get their problem resolved. But the people who approached the agent angrily got a much less satisfying response.
Again, the terms of payment may be as elaborate as you care to make them. I always recommend that any and all payments be tied to performance of some specific milestone or event, such as: xx% down; xx% upon completion of foundation work and backfilling; xx% upon completion of rough framing and exterior enclosure; etc...Trust me, your contractor may not like this, but be adamant. You have NO OTHER "stick to beat them with" except your checkbook! Use it firmly but fairly. Once again, a reputable and honest contractor should have no problem with this: it is actually to their benefit, as it clearly defines when they are going to get paid as well! If they want to get paid, they have to perform. Simple as that.
Last but not least, include places for all parties involved to sign and date the Contract. In the case of a private property, all persons listed on the title should sign (husband and wife both, all partners, etc.). In the footer, include a statement detailing how a dispute will be resolved, and where. I live near my state border, and there are a lot of contractors that cross the line to work. If you don't want to have to travel in case of a suit being filed against you out of area, you should call out what state and court system to be used in case of a dispute, such as "This contract shall be administered under the laws of the state of [insert state]. Venue for any dispute shall be the [insert judicial circuit or court and county].
In closing, let's summarize what the contract should include:
- Names of parties to the Contract
- Date Contract entered into
- Detailed scope of work and document references
- Special conditions to the Contract
- Schedules and Milestones
- Payment amounts and terms
- Signatures of all parties involved with dates
- Venue for dispute resolution
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