Separate names with a comma.
Missed the live Ask the Expert event?
Not to worry. Check out the archived thread of the Q&A with Ken Hutcheson, President of U.S. Lawns, and the LawnSite community in the Franchising forum .
Discussion in 'Original Pictures Forum' started by etwman, Dec 20, 2002.
I think you took things a little to literally groudscapes
I did, you are correct.
Nice work as usual Jarod! BTW, Have you talked or heard from Tim Wright at all recently? I talked to him about a year ago but not since then and haven't seen him on the forums??
ETWMan thank you for posting so much of your companies information on this site. We run a install and maintenance company. The information you put out has been a invaluable asset in helping us make decisions. Our markets are quite a bit different but alot of things still crossover. I was wondering if you have did a job on time and material. We our able to do this alot of times with certain customers and it seems to work out for both parties involved. Just wanted to get your professional opinion.
What part of NC? Some great ones in the foothill! Great work
The last concept you mentioned about working with other companies/suppliers to build good relationship reminds me a lot of a key strategy Wal-Mart employs (virtual integration & 'co-opetition')... i.e., working to help suppliers lower costs so you can in turn get stuff from them for cheaper, and taking a less competitive, more cooperative approach. It has been a big part of the companies massive growth and success
I have not forgotten about this post, I've been debating how I want to respond to it. It is a valid question. Time and material is a double edged sword. In my honest opinion it is only as good as the company is efficient. Let me give you an example. The client needs 10 trees installed and two companies agree to do it on T/M. Company A shows up with two shovels and two guys with an hourly rate of $40/hour. He ends up having 80 man hours in it. Company B shows up with two guys with a skidloader and auger with an hourly rate of $65/hour an has 20 hours in it. Now I will tell you first hand that if the client did his homework Company B would be the better solution.
It is my opinion that if you are going to do work on T/M you need to do everything possilbe to make sure that you are treating the client the best you can. That client is trusting you that you are going to do your best to be the most efficient and quality driven you can be.
Now to answer your question. I don't think there's a company out there who hasn't at one time or another done something on T/M. If you are going to go that route for certain phase(s) of a project I feel you need to educate the client very thoroughly on how this is going to be done. Sometimes its best to have a T/M with a do not exceed number on it.
I do know that some states are really clamping down on T/M work from contractors (PA and others) and are implementing laws against this type of work. It is my belief that there are contractors out there who have taken advantage of this and the states are trying to protect the consumer.
This is my two cents on this issue. It all boils down to a trust issue between the client and the company. I do believe it is okay to do T/M in some instances, as it treats the client fairly.
We are on a T+M job right now. Just rolled over $100,000 the other week. There was absolutely no way to bid the job at a fixed cost, because we would be writing 2-3 change orders a day.
I feel T+M jobs require a mutual understanding and respect from both parties. Contractor: to treat the customer fairly, Customer: to trust the contractor enough to get it done as quickly as possible.
I typically prefer T+M jobs. We don't end up making as much money, but the amount of stress is saves just knowing that we aren't having to rush all the time to hit our target labor amounts and not go over.
I have found that after a year or two or working with a customer on smaller jobs, we usually end up with T+M jobs from then on out, and sometimes with a NTE amount.
Whats is T+M and NTE. Sorry if this is a dumb question.
Time and Material
Not to exceed (usually a dollar amount on the time and material phase)
You're 100% on your post John.