Sub-contractor Agreements

jim lockard

5 years now, I do not do alot of work for them but maybe 3 or 4 jobs per year with a yearly gross of 10 to 20 thousand. Today I get handed a sub contract agreement with a laundry list full of clauses Including any work I obtain from having my lettered truck parked in front of a home while working on their job they get a cut of. Question what is the wall's spin on these agreements and how do I not sign this thing and keep a customer. Oh one more thing I consider myself a service contractor with 90% of my work performed for the owners of real property.
Thanks J.Lockard

lchmb

opinion

Jim, I would hand it back, tell them that you get a cut of all the work they recieve because you do nice work and word of mouth got them the job!! I would simply tell them that you sign a per job agreement. Sound's like a company just trying to grab as much money as they can. How will they know that your truck got you a job because you were parked somewhere?? It could turn into a nightmare in my opinion. BTW, you paid for the truck, you pay for the lettering and you do the work and they get paid??????

jim lockard

I never asked

for this companys work. Most of what they do is insurance claims and fire jobs. They call me to repair electrical services, and install and repair heating and cooling systems. This is a rather large company with about 400 rental propertys under their belt. They recently hired a new Gen. Manager and this his bright idea.

lchmb

for the headache

I would tell them (of course this is me personally) to have a nice day!! Let this new GM try and find someone who will sign on with that agreement..:) If they do I have a feeling they will be back soon enough when the trouble's start!!

Ted_9

Tell them your not interested in the agreement, but would be happy to continue to do busness with them in the same manner.

Or....

You could do what I would do and laugh in their face and tell them where they can put that agreement.

Patriot Heating & Cooling, Inc.

Murph'_5

Big cahunas....

The GM of late needs to answer to someone, let them know what you think of his idea. personally I feel all work trickles around and if they find someone who needs to jump through such hoops, that will free up work for you from people that respect what you do without the games. You could get to meet the guy that give me the best laugh of the week, I'd walk.

Murph'

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Don Walsh

No way Jose'

I'd tell the idiot, "I was born at night, BUT it wasn't LAST night!"

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S Davis

Sub-Contract Agreement

We had a contractor that signed a contract of ours for a $50,000 radiant heating job and then came back about two weeks later and said oh by the way I need you to sign this sub-contractor agreement, I took it to our attorney who said do not sign it unless you want to be owned by them, I told the contractor that we would not sign it on our attorneys advise and was prepared for a fight since he had signed our contract and we had started the job.
I guess in washington state if somone breaks your contract you are entitaled to your normal profits and any work already performed, well before I had to play that card he decided to have us do the job anyway and we still work for him, so I would not sign and if you still get the work great and if not your better off not having that contract hanging over your head.
JMHO.

S Davis


Apex Radiant Heating

Robert O'Connor_7

Sub/Agreement..

Don't burn the bridge too fast. Why not have some fun with it first. Draft your own agreement with a cover letter that mirrors their agreement with a new set of work rules regarding payment,referrals, commissions,advertising(tell them you want your name on the sign)ect. and address it to the new boss. They might back down and in the end you still could go tell em to scratch. Try and get a face to face meeting, human nature dictates people are less apt to say no to your face. Show him how ridiculous the agreement sounds and ask him if he would sign. Being diplomatic is not only smart but it pays well too. Greese um up!..Robert O'Connor/NJ

Mark Eatherton1

Well said Robert!

Nuff said:-)

I loved the Go tellem to scratch clause.

I think I'll put that in MY subconstrictor agreements...

ME

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joel_19

right

You can show someone thier wrong and still keep the account. I'd make up my own terms similar to thiers and see if they'd sign it. politely of course and explain to them how you don't agree. we are going through the same thing with a large equipment manufacterer that wants everything "oneway" . when they found out we wouldn't sign they came back with "Ok how can we make this work". politely hold your ground and you may be able to keep the account.

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jackchips_2

Can not

say it much better than Joel,

"....Politely hold your ground....."

Dave Yates (PAH)

line item veto

What I do in a case like this when I'm interested in maintaining a working relationship that's mutually benificial.

Using a pen (black ink looks best), I'll draw a neat line through the offending text (use a ruler). In the column to the right, I'll date and initial the change (they too must date & initial each change to make this legally binding). Make a copy with changes noted for their file and you keep the original.

Lawyers working for the GC will deliberately word the document heavily in the GC's favor. Most firms that are interested in maintaining a good working relationship with their subs don't mind reasonable changes. Those that do mind aren't worth wasting time with and their intentions become transparent.

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jim lockard

Thanks to all

With more good customers then I can count and having to turn down about half of the work offered to me. I am completely at peace with wishing this company well and moving forward in my life. Best Wishes J. Lockard

jim lockard

update

Talked with a plumbing supply salesman(with a major supplier) who had a big falling out with the General Manager of the same company. This General Manager wanted all kinds of concessions, Salesman ended up pulling his consignment inventory and told him to consider his company a retail customer from now on. As for me I just sent them a letter letting the contractor know I would not sign on.

lchmb

just sit back and watch

I have a feeling in a very short time this "manager" will burn all his bridges and come running with his tale between his legs'..:)