Should I have been more trusting? [Archive] - Home Construction Forums

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grumpydasmurf
11-21-2003, 10:38 AM
Fellow contractors and business people, I ask you an important question.

I recently contacted some general contractors in my area. One was eager to give me work because his usual roofers were so backed up they couldn't do service calls. He asked me to work for Time and Material (T&M). I agreed and we negotiated a price and so on. THis would be our first T&M customer.

I drafted an agreement basically writing down what we verbally agreed. I sent it to him and no response. I called him to let him know I can have a roofer do his 3 service calls tomorrow if he would fax back the agreement with his signature. He agreed.

He called me 5 minutes later and said "My boss doesn't like signing these things." I aksed why and never got any real answer. He began explaining that these service calls were petty and this wasn't needed. We would just send him a bill when the work was done. I said "That's great but I just need something binding."

I felt very suspicious and worried. I thought to myself "WHy are they so steadfast about NOT signing?" To make a long story short the conversation degraded into me suggesting we don't do any business together, wished him good luck and hung up.

Should I have been more trusting? I was worried we would waste a day or two of a roofers time and then get jipped on the bill.

Do any of you who work on T&M have written agreements? Should I have trusted this guy?

Rich
11-21-2003, 11:13 AM
I think you made the right decision. It only takes one time to make you realize the bad business decision it is to not have a binding agreement, even if it's for less than $500. That 500 could turn into a whole lot more with no agreement.
We do T&M all the time - and we've never done it without a written agreement of some sorts. The biggest issue is that it also covers them not just you. In my way of thinking they are being ignorant of the possibilities.. what happens if one of your guys falls off the roof on one of their projects? Nothing good I can tell you that.