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Can anyone here help with a T&M contract. Our company is a DBE participent to sub-contract work. The contractor has presented what looks like their standard sub-contract form, I need to modify and add items that they have convieniently left out. I am working on a deadline, and just received it Friday afternoon! Would like to get it back to them on Monday. Thanks for your help.
Add an appendix; this is a page to add to the existing contract. I would add “See appendix A” underneath your current contract inclusions. On appendix A add what is needed/left out.
Similar to above, add at the bottom of the contract inclusions, “As per bid” dated Month/date/year and add a copy of the bid to the contract.
Make sure you initial these additions/changes.
I would also think about sending the contract back before you sign it with these added changes and let them initial them prior to a full acceptance of the contract. If you have a good relationship with the contractor you may want to have a conversation with them about these things also.
Get these issues sorted out prior to a full signing of the contract and before you start work. Do not take the “Oh this is our standard contract and everyone signs it.”
Hope this helps. Let us know if you need anything else
Add an appendix; this is a page to add to the existing contract. I would add “See appendix A” underneath your current contract inclusions. On appendix A add what is needed/left out.
Similar to above, add at the bottom of the contract inclusions, “As per bid” dated Month/date/year and add a copy of the bid to the contract.
Make sure you initial these additions/changes.
I would also think about sending the contract back before you sign it with these added changes and let them initial them prior to a full acceptance of the contract. If you have a good relationship with the contractor you may want to have a conversation with them about these things also.
Get these issues sorted out prior to a full signing of the contract and before you start work. Do not take the “Oh this is our standard contract and everyone signs it.”
Hope this helps. Let us know if you need anything else
That's just the thing, we attached equipment/misc expenses and time costs, they seemed to have left out the misc., I feel, because our company is DBE, they think we can't read. LOL
I have contacted our attorney, and he's on it. I appreciate the help though, and look forward to your forum.
Hello Fella's. Wellllll..... they added what we requested, somewhat, but, they are only allowing cost plus to "labor" only. And, lowered our equipment costs to the "book of rental?"...grrrrrrr .... is that the norm? Short of sounding stupid, as you can tell, this is our 1st T&M job. Any input would be helpful.
Unless you can fully capture all your expenses/costs in your T&M rates, you'll be hard pressed to make the margins you are looking for on a strictly T&M based contract. If you don't, you'll end be the General Contractor's labor pool.
If there is a way to bid the project on a lump sum basis with your T&M rates for extra work or unforeseen conditions, that would be your best bet.
Remember, if you're performing work on a break even basis, you might be better off staying home. All it takes is a single injury, equipment damage or property damage claim, and whamo!, you're job just lost any profit you might have gained.
I'm not trying to be pessismistic, just offering my experience. As stated earlier, "stick to your guns."