Contract signing terminology, can you believe this?

Discussion in 'Business Operations' started by Ramairfreak98ss, Nov 6, 2008.

  1. Ramairfreak98ss

    Ramairfreak98ss LawnSite Silver Member
    Posts: 2,210

    Im signing a contract for a big company that is subbing some work to us this winter, all commercial properties right....

    It states:

    WE ARE NOT REQUIRD TO TAKE LEGAL ACTION TO ENFORCE CUSTOMER PAYMENTS. WE ARE NOT OBLIGATED TO PAY YOU UNTIL WE RECEIVE PAYMENT FROM OUR CUSTOMER FOR THE SERVICES THAT YOU PROVIDED. YOU ASSUME THE RISK OF NON-PAYMENT BY OUR CUSTOMER FOR ANY REASON INCLUDING, WITHOUT LIMITATION, OUR CUSTOMERS BANKRUPTCY, INSOLVENCY, REORGANIZATION, FINANCIAL DISTRESS, NON PERFORMANCE, DISSATISFACTION WITH SERVICES, O R OTHER REASON IN OR OUT OF OUR CONTROL. IN NO INSTANCE MAY YOU, YOUR OFFICECERS OR EMPLOYEES SEEK TO COLLECT PAYMENT FROM OUR CUSTOMERS.


    WTF? So they could basically choose not to pay for ANY and all of those reasons, just because they complain about service and so the main company wont bill them or collect payment, you wont get your money and then you cant sue the original place you did the work for for the money?

    How legally binding are these terms in their 20 page packet of bullshiat? Im sorry, but if they dont pay because of bankrupcy or any of those other BS charges, i will sue them in court and collect from them whatever i can to make good on all services rendered. Thats a bunch of BS if ive ever heard of it!

    oh oh, my big arse company has "financial distress" over your bill, so were not paying it! Company says, sorry man, we cant pay you because they wont pay us and you cant collect from them, ?
     
  2. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Posts: 6,412

    This big company wouldn't happen to be 'TrammelCrow', would it??

    Regardless, I would not sign that contract.
     
  3. tamadrummer

    tamadrummer LawnSite Bronze Member
    Posts: 1,102

    There is no way I would sign that contract. You are setting yourself up for total disaster with that.

    Now that the elections are over and once gas is back up to 3.50 - 4.00 a gallon, I don't think anyone can take that hit with no ability for collections agaist the company setting up the jobs.
     
  4. AintNoFun

    AintNoFun LawnSite Bronze Member
    Posts: 1,807

    if you sign that your crazy! but thats how most big companies do it.. entice the little guy with big commercial work, oh yea btw we not gonna pay you.. sad part is there are 2 million other landscapers ready to sign that contract....
     
  5. cpel2004

    cpel2004 LawnSite Bronze Member
    Posts: 1,416

    I agree with the rest of the posters, walk away ASAP.... Trammelcrow
     
  6. JNyz

    JNyz LawnSite Bronze Member
    Posts: 1,086

    I signed one of those about 10 years ago with a legit company. They never missed a payment and we still do about 2k a month for them. If the company has a bad rep DO NOT DO IT. It sounds like a snow removal contract, mine was not. There is plenty of snow removal work out there, just go get it yourself. If you PM me I can point you to a company in your area that has a decent rep.
     
  7. Ramairfreak98ss

    Ramairfreak98ss LawnSite Silver Member
    Posts: 2,210

    Yes it is, and we've done work for them before, with much shorter contracts. My problem isnt really so much that they wont be held liable to sue if non payment happens, as much as that i basically have to stick my thumb up my a$$ if the end client chooses to not pay for any reason, F that. Im going to inform them that out of the 20+ pages, i dont agree to that section, i will not do work in which we are signing away ALL rights to collect.
     
  8. rob7233

    rob7233 LawnSite Senior Member
    Posts: 861

    This may sound crazy but cross out the section(s) you can't live with. Then sign it and make a copy for yourself, then send it on back. Then sit back and wait for the phone call....

    It then is in the company's court and chances are it gets opened for discussion. Negotiate it.

    Contracts get done this way all the time.
     
  9. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Posts: 4,909

    Bingo.

    The company is a broker. As are all these large companies.

    They get their cut whether or not you get paid.

    We all look at that clause and say "thats nuts"

    But look how so many on this board wet their pants for the chance to mow or plow their local Walmart.

    These companies know that. If you dont sign it.....Others will...

    With that said.....UNLESS YOU HAVE A HISTORY AND VERY GOOD CONFIDENCE IN YOUR RELATIONSHIP WITH THIS COMPANY.....DO NOT AGREE TO IT.....

    Been there....Done that.....Have the debt to prove it.
     

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