View Full Version : Wording / Phrasing help with clause in contract
12-10-2009, 10:54 PM
I have added this clause in my proposals a while back. Recently I have modified it.
Does this make sense? Any input would be appreciated.
In the event work is stopped for non-payment, or due to funds not honored by client's financial instutution - Contractor will discontinue the work until an acceptable form of payment is made in full, and all returned check fees are paid. Resuming of work will be re-scheduled. A "Re-mobilazation Fee" of $600.00 will be assessed and must be paid by client prior to work resuming.
12-11-2009, 12:14 AM
I understand where you are coming from, and most of it makes sense, but I would drop the "re-mobilization fee".
I think the first part lays it out pretty clearly that you want them to have the funds ready and you won't take B.S. Any more sounds too negative and might turn off potential good customers. They might take it the wrong way, like you think everybody is a deadbeat (including them).
STL Ponds and Waterfalls
12-11-2009, 12:33 AM
A $600 remobalization fee? What does your remobalization consist of?
12-11-2009, 07:04 AM
no dropping the fee, thats the whole purpose of he clause :) As, the other stuff is routine business protocall.
We had a client ths year do a stop payment of a $4000 check....and they EXPECTED us to continue the work. We were going to pull out, when they suddenly produced the money. We can't play musical equipment. Load up and leave. Go to another job. Load up and return. yadda yadda yadda.
12-11-2009, 08:54 AM
Not to be a smartass, but how often does this happen? Are non-payment and bad checks that big of a problem up there?
STL Ponds and Waterfalls
12-11-2009, 09:49 AM
My point is $600 for the fee. Around here it is usually $200-$300 for relocating equipment.
you guys are missng the point. dvs didnt ask how much to charge, he asked how the wording sounds. he has obviously made up his mind and has reason to.
anyway... i think you should change the word discontinue to "STOP" or "POSTPONE"
and i would also change to word assessed... i dont know what to, maybe change it to charged, or something like that.
hope that helps
Summit L & D
12-11-2009, 05:14 PM
DVS, I think you're pretty much dead on.
Here's the deal, unless the client is looking to get something for nothing, no one will have a problem signing a contract with that clause in it. Would you rather know the client is planning on leaving you holding the bag before you commence work or after?
How about $800.00 - $1,200.00 to remobilize? It's going to take you a whole lot longer to deal with this client for the remainder of the project...you should be compensated.
12-11-2009, 06:58 PM
All of our jobs have an equipment mobilization fee factored into the job cost. It's usually $275, which will get the equipment to the job and off the job one time.
This past June I had a problem client.
Everything started off beautifully. But on the 3rd day things started going downhill.
They then stopped payment on a check for the most unreasonable reason. With no payment - we're not going to continue to work and incurr additional expenses to subsidize a home owner's life. When I told them we were pulling off the job - they quickly had an envelope stuffed with cash waiting when we arrived. They would have been screwed if we left.
We had other jobs sold. Wasn't going to piss around with these people. They stop a $4,000 payment - we're packing up and are out of there. They want us back - ok, we'll come back but this time you're going to pay. We're not in the business of moving equipment in and out of the same job mulitple times.
8 to 12 hundred sounds good!
I know I'm not the only contractor that has encountered this issue :)
12-12-2009, 12:31 AM
The wording. this is how I'd phrase it. It makes sense to me, but I've done wording on my contracts, so I've come across these concepts before. A client may not.
"In the event work is stopped for non-payment, or due to funds not honored by client's financial institution, the Contractor will discontinue work until payment is made in full, including all returned check fees. In addition, a "Re-mobilazation Fee" of $600.00 will be assessed and must also be paid in full by the client. Once all fees are paid re-scheduling and continuation of work will commence. "
I think its great that you can charge a fee like that. I know i cant. when I've had clients cancel on me, or stop the project halfway through b/c they "changed their mind" on something--the biggest penalty is that they go to the end of my schedule--which can be 4 weeks away.
I like the idea of the mobilization fee though.
12-12-2009, 08:47 AM
thanks for the input thusfar, guys! I really appreciate it.
12-13-2009, 06:30 PM
I think $600 at a minimum Andrew. You know how long it can take to tear down a jobsite. If you have to pull out mid-stream, you're moving hardscape equipment, a skid loader, possibly a mini-x, supplies, etc. That could be the better part of a day with two guys. If there's one thing in this industry that people don't realize its how much time is involved in moving equipment around. Run a truck out, load it, chain it, haul it back, unload it, etc.
One other line you may want to incorporate in that, (and I'm not sure how much you work for a g.c), would be to mention a $600 fee above quote for each time you would have to pull off site and return. If you quoted the project, under one mobilization fee, and the gc isn't running the project correctly, you may have to pull out and come back unexpectantly. This may not stand in commercial, but in residential you'd have a leg to stand on. We've proven it.
STL Ponds and Waterfalls
12-13-2009, 08:45 PM
I guess I should have worded my reply different after reading some of the replies. The thing that bugs me is some guy's charge a hauling fee to get to your jobsite in the first intial trip for excavating. I understand the relocating fee when a customer is being difficult, but I can't see being charged for bringing the tractor to the jobsite when they need it to excavate anyway.
12-13-2009, 08:54 PM
I don't think that's what Andrew was referring too. I think he's talking more about customer's "playing games" and protecting our bottom line.
You can burn up alot of time mobilizing. We try our best to move equipment right to the next job and not return it to the shop any more than we have too.
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