ECN Forum Forums General Topics of the Trade Business Related Discussion StreetWise 101 How to avoid getting taken

I would say that your first step to avoid getting taken is to keep your eye on the target.
That is, if you're there to power the A/C, you're there to power the A/C. Not to fix the furnace, set up the scaffolding, or do anything else. If the A/C turns out to be something else ... you're back to the very beginning ..... I don't care how similar the job appears.
The same applies to payment. If your terms are 'net in 30' ... that does not mean 'after inspection,' or 'some now, more later,' or 'make it up on the next job.' Every change order is a separate transaction, and what happens there has no relevance to the original deal.
I stress this, because one of the primary hustles out there is to continually shuffle things about, until nobody knows what's happening - or who will make it happen. Keep your eye on your target ... or it will cost you money.

The GC is responsible for two things: scheduling and picking up the trash. OK, three- if you need a toilet as well. If he doesn't do his part, you don't need him.

The first key to getting paid is to know your customer. Never risk more than you can afford to lose. I've told many I would be happy to work the next job .... AFTER I get paid for the last one. Oops, gee, I guess they just forgot to pay me.
Structure the payments so you are never in trouble with the supply house. I've seen too many guys get shut down by the supply house .... all because some CUSStomer was playing games.

It gets back to knowing your customer. No matter the paperwork, you'll never come out ahead when dealing with a scoundrel. Don't waste your time.

Know the risk you are taking, and operate your business to compensate. For example, if your business model depends on a continual flow of new customers .... make darn sure to get some money first, and charge more. Keep in mind that you don't know anything about these folks, appearances can be deceiving, and be ready to play hardball. Even paranoids can have enemies.

Finally, it matters not what is "customary," or what the "other guy" does. Have your model, and stick to it.

Honesty is critical- especially to yourself. If something isn't working, it is far to easy to make excuses, and waste more time following a failed practice.

I am in contract negotiations now and a few more things came up, and Renos comment touched on it too.

Dumpsters and trash hall off.
Furnishing a dumpster and paying to have it emptied is a general condition that the GC should pick up. If you put that in your bid you would not be low, so look out for GCs that want to slip this in your contract, becuase its his dumpster not yours.

Cleaning
You are responsible for your own clean up. Do it every day and NEVER under any circumstance agree to a “composite clean up crew”. Watching my licensed electricians clean up a giant pile of sheet rock the sheet rocker left for the composite crew made me want to cry. When the composite crews start, the messy trades tend to stop cleaning up as they go and leave giant piles of trash because they know the other trades will have to help them clean it up later.

Temporary Toilets
It’s a general condition too, and on a few occasions I have had this slipped back into my contract. Keep an eye out for it.

New Laws
Keep up on the new laws coming out that may concern you and your business. It helps to join a trade organization or network like we do in here.

There is a new law here in Texas that starts September, which has a huge impact on my business. As of September 2007 General Contractors can no longer write or execute the “pay when we get paid” clause. In the past most contracts stipulated that they GC was not obligated to pay our draw until they were funded by the owner; well now they have to pay net 30 regardless if they have been paid or not. Whooo Hoooo that’s one for the home team!!!!

You guys are very helpful and I will be tuning in alot more after reading this.
Thanks alot.

The original XLS spreadsheet link has expired.

ITO,
Good point about cleaning up.
It is actually written on my standard contract here that I will clean up "any trade debris that my work creates", not the builders, the plumbers or the painters work, my work only.
I carry an old bucket with me as I work around a site and drop wire ends and other rubbish in it as I go.
However, having to clean up other trades rubbish is just not on at all!
Look after Number One is the way to go.

One thing I haven't seen mentioned. I've found some GC's may be hard to get along with and want you to bend over backwards for them. Some are a bit arrogant at times. But what I've found is that if you have a crew who is mindful of their responsibilities, knows what they're doing and get the job done, the GC's are much easier to get along with. It's when you start causing them headaches due to poor workmanship, not following the prints as to the location of devices, not reading the notes and causing them delays and rework etc is when they start to eat your lunch.

I've found most GC's to be very reasonable. If you do your job well and don't cause headaches for them they will look forward to working with you again. I've even had contractors offer me more money for a change than I asked for or told me to increase my bid by x $thousand dollars. If you cause them problems they are going to give it back to you.

I had a plumber buddy tell me once about negotiating with a "slap-em-together" tract home company that their price proposal was unrealistic and gave him a 5% loss on each house "I can starve at home without wearing out my tools" he said -I kinda took that to heart. If you let someone draw you into price only competition you will lose every time