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Team-Green L&L
07-09-2006, 01:14 PM
Boy do we got one now! A commercial account has a 45 day turn-around on invoices. They sign to a Net15 term of payment and were 60 days late in the first payment. We just recieved it. They want to re-negotiate their contract terms to 13 cuts instead of 26. Here's the issue. We bill for 8 mos. to ease the payments on clients and increase our income time. Never have had an issue til now. I really don't need the loss of 1/2 a large contract, but I don't want to be a PITA myself. Any suggestions?

Runner
07-09-2006, 01:24 PM
Tell them you'd be happy to reduce the number of cuts from 26 to 13. Also tell them that you can do it for the low low price of just 20% over what the 26 cuts would cost them. That will cover the extra time of the "every other week" thing.

Team-Green L&L
07-09-2006, 01:41 PM
That's what my buddy said. How ironic! Wouldn't this insult him further? I told him we could not re-negotiate at this time due to our policies. He said, "Well, I guess I'll have to have our corporate attny take a look at the contract. I'm not concerned about that because it is written for a grand total broke down into 8 monthly installments (pretty hard to dispute). These guys are being audited and I know that I will refuse next season. What would you do this season?

ed2hess
07-09-2006, 01:51 PM
He said, "Well, I guess I'll have to have our corporate attny take a look at the contract. I'm not concerned about that because it is written for a grand total broke down into 8 monthly installments (pretty hard to dispute). ?
Do they have the option to cancel with a 30 notice? Second, did you write in a section to deal with the cost of each mowing if they cancel?

Tharrell
07-09-2006, 02:52 PM
What kind of account is this?

topsites
07-09-2006, 03:44 PM
Do this: Save your money and watch all your 'omg what do I do' problems disappear.

..............
On another note, the going to court bit is the most likely reason why I'll never bid another commercial account again.
All the rest is bad enough, but that part right there does it for me.

Shawns Lawns
07-09-2006, 04:36 PM
This is just a thought but probably not your situation. Most people say that the lawn does not need cutting every week and want to go every other week and that it's NOT the money, until you agree to every other week and double the cut price. :rolleyes:

Team-Green L&L
07-09-2006, 04:38 PM
There is a 30 day written notice clause for non-performance, but no clause to deal with the itemized payment issue.
This is 5 acres that grows quickly with a drainage area that grows even quicker. Money is the issue. The CEO told them to cut back on AP's and they were to start with grounds maintenance. That's what ticks me off the most.

DLS1
07-09-2006, 05:12 PM
Lot of guys on hear push contracts even for residential. Why bother when they can cancel in 30 days if they want. I only do residential contracts for landscape/renovating a yard and the contract is always a simple one page contract.

Dashunde
07-09-2006, 07:07 PM
Sit down in person with them, agree to the 13 cuts, but hold them to 70% of the original contracted price.
Turn this to your favor, while they still save 30%.
Fill in the new idle time.

Remember, contracts are made for a reason and if they want to fiddle with it things should sway to your advantage.

Team-Green L&L
07-09-2006, 07:33 PM
Sit down in person with them, agree to the 13 cuts, but hold them to 70% of the original contracted price.
Turn this to your favor, while they still save 30%.
Fill in the new idle time.

Remember, contracts are made for a reason and if they want to fiddle with it things should sway to your advantage.

Good advise, this may do the trick and keep all parties happy.