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#156031 - 03/08/05 01:11 PM Not to exceed____$  
BOSSMAN  Offline
Joined: Apr 2004
Posts: 28
I do service work for service companys that take care of Department stores and I get work orders with the not to exceed___ $ amounts.
Should I go up to that amount or should I only bill for time and material. If I know the jobs are going to be more you call and get a blessing first.
Some of these sevice companys take there time paying so im feeling like I should go up to the amount they listed even if it doesn't take that long. what do you think.


Business, Office, Estimating, Legal:

#156032 - 03/08/05 06:19 PM Re: Not to exceed____$  
LK  Offline
Joined: Jan 2003
Posts: 1,429
New Jersey
Here in my state the service company would have to be lic.and have a business permit, to contract for electrical work, and they are required to disclose the price to the customer, what they are doing, would be illegal in some states

#156033 - 03/10/05 05:51 AM Re: Not to exceed____$  
Indcom  Offline
Joined: Jan 2005
Posts: 34
Katy, TX USA
I do work for companies that moderate or manage the maintenance of department stores and they call me whenever work is needed at one of their stores. They generally request an estimated amount for the work to be performed and issue a work-order with the amount shown. If it exceeds, I too have to get their blessing after providing resonable explanation.

But, more onto the point, if it's things like changing lamps and ballast I either give a per each price or my T&M rates. If it's a larger item, like a transformer or panel upgrade (or similar large jobs), I give a firm quote price and charge for that in full. (Yes, the quote price is slightly larger than T&M)

John C. Harvey
IndCom Electrical Estimates

#156034 - 03/10/05 09:23 AM Re: Not to exceed____$  
Joey D  Offline
Joined: Oct 2003
Posts: 259
Arlington MA U.S.
More than likely the store is only allowed to spend X amount of dollars without getting an estimate. This lets them do maintance items without getting permission but limits the amount they can spend without approval from higher up the food chain.

#156035 - 03/10/05 10:39 PM Re: Not to exceed____$  
nesparky  Offline
Joined: Jun 2001
Posts: 642
IMO you charge for what you have done. If you see that the job will go over that amount then get a approved change order or purchase order for the greater amount. If however you completed the service then charge according to the contract terms for what you did. You do not want to charge for work not done-- that can lead to a lot of problems later on.


#156036 - 03/11/05 08:54 AM Re: Not to exceed____$  
BOSSMAN  Offline
Joined: Apr 2004
Posts: 28
Thanks for the input, I have only charged my regular rate for these type of jobs and have been glad for the work I just get tierd of waiting to get paid. Oh we didnt get your invoice, Oh we need a copy of workmans comp., Oh we need your liablity ins. I have them all just wish they would ask for it in the very beginging. Well that business thanks again.

#156037 - 03/12/05 08:08 PM Re: Not to exceed____$  
nesparky  Offline
Joined: Jun 2001
Posts: 642
Those excuses are just there to make you wait to get paid. Have found that 95% of the time they are bogus - especally when you have been paid for other work by that company.
For those type of customers I raise rates as soon as I can.
I also charge late payment fees, after all if you are late to your supply house they will charge you.
I know that many of those companies do not pay the late fees but it does seem to get them to pay on time on the next billing.


#156038 - 03/13/05 09:54 AM Re: Not to exceed____$  
Dave55  Offline
Joined: May 2004
Posts: 697
Crystal Lake, Illinois, USA
Good customers pay. If they aren't good about paying, I try to train them into paying. 30 days is the norm. Any less is a gift. If they go much over 30 days or can't be trained, I usually drop them. Those collection letters are a waste of my time.

Often the only difference between a successful business and a failed business are the receivables.


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