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is not enough to rule out doing business with the individual Individuals can get into financial trouble through no fault of their own, as the above example shows You must be willing and able to decipher what you are seeing When you learn to read between the lines, you will be a more effective businessperson
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PRO POINTER If you plan to utilize the services of the subcontractors you are interviewing, set the guidelines for doing business with your firm If you require all your subcontractors to carry pagers, tell them so If you require subcontractors to return your phone calls within an hour, make the point clearly Remember that you are in control, but you can t expect people to read your mind You have to let your desires be known
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Set the Guidelines
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If you plan to utilize the services of the subcontractors you are interviewing, set the guidelines for doing business with your firm If you require all your subcontractors to carry pagers, tell them so If you require subcontractors to return your phone calls within an hour, make the point clearly Remember that you are in control, but you can t expect people to read your mind You have to let your desires be known
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Coming to terms is a key issue in selecting subcontractors What you want and what the subcontractors want may not be the same If you are going to do business with subcontractors, you should work out the terms of your working arrangements in advance Discussing contracts is a vital topic in meeting with subcontractors You should go over your subcontract agreements with the subcontractors If there are any questions or hesitations, resolve them in the meeting You don t want to get into the middle of a job and find out that your subs will not play by the rules The more detail you go into in the early stages of your relationships, the more likely you are to develop good working conditions with your subcontractors Just like your contracts with homeowners, you want your subcontractor agreements to be free of confusion and misinterpretation Insert whatever clauses are appropriate to make sure subs understand what you expect Take as much time as necessary, but remove any doubts from your contracts
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The contract should include the time (date) when you expect the sub to be on a job; also include the time (date) when their work is to be completed (and accepted as satisfactory) If the sub fails to meet these dates, what leverage do you have As far as starting date, you don t have much, but if the contractor delays too much, you ll need to send notification that if the contractor fails to start on such-and-such date, you will cancel the contract This is the reason for having multiple subs in each trade ready to do business with you As far as completion is concerned, you have a little more leverage A standard contract provision, known as a performance clause, deals with this issue A typical performance clause is similar to the following: The subcontractor agrees to commence and complete the subcontractor s work by (dates) and to perform the work at lesser or greater speeds, and in such quantities as, in the contractor s judgment is required for the best progress of the job or as specifically requested by the contractor Should the subcontractor fail to prosecute the work or any part thereof with promptness and diligence or fail to supply a sufficiency of skilled workers or materials of proper quality, the contractor shall be at liberty after seventy-two hours written notice to the subcontractor to provide such labor and materials as may be necessary to complete the work and to deduct the cost and expense thereof from any money due or thereafter to become due to the Subcontractor under this agreement Another subject for the contract is job cleaning Subcontractors are generally required to clean up their trash and debris, but many don t do it promptly, and many don t do it at all unless there is a clause in the contract such as: The subcontractor shall at all times keep the job site clean and orderly and free from dirt arising out of the subcontractor s work At any time, upon the Contractor s request, subcontractor shall immediately clean up and remove from the job site anything it is obligated to remove hereunder or Contractor may, at its discretion and without notice, perform or cause to be performed such cleanup and removal at the Subcontractor s expense Payment issues are always important In the industry, there is widespread use of a pay when paid clause in many subcontract agreements Some states have deemed these clauses invalid, and you may not wish to use them If you do, the clause typically states that the subcontractor will be paid within X days (generally 15 to 30 days) after the contractor has received payment for that work from the owner In effect, this pegs
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