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TWELVE THINGS YOU SHOULD NEVER DO AS A CONTRACTOR
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Every experienced construction attorney has his favorite list of things you should not do. Here are mine:
- Never take over for another contractor who has left or been terminated. This only applies to taking over the entire project. Doing a small "back charge" segment, even with a monster, usually ends up pretty good because the owner is anxious to complete the project and loves to see you as the hero which, in turn, makes the other contractor look bad.
- Never rush into signing or performing a contract. If someone is pushing you hard, there is some improper motivation.
- Never loose your cool. Be businesslike but never raise your voice. I had a client whose entire right hand had to be amputated because of a bad IV infiltration by a nurse. We also suspected the doctor had failed to monitor. The client refused to sue the doctor solely because he had been so helpful and solicitous. If he had made one rude remark, he probably would have been sued.
- Never send your invoices or change orders at the end of the project. Bill early and frequently. One of the biggest complaints is that the client was genuinely surprised when they found out how much it was.
- Never make loans or advancements to an employee, subcontractor, or supplier. Pay them under the contract when it is due and not a moment before. Many people think that by loaning someone money they will extricate themselves from their predicament. Wrong. They are usually so far in debt that the money is evaporated as soon as it hits the bank account. And, for some unknown reason, people treat other monies more liberally than if they had to earn it themselves.
- Run and do not walk from a comment such as, "Don't worry about it, I will take care of it"; "Trust me"; "I would never lie to you"; "Let me be perfectly honest with you"; or the like. Some of the most honest people in the world are contractors. And, honest people don't make those types of statements. They look you in the eye and tell you like it is without any of these coverup lines.
- Never do a deal on a handshake. This does not apply if you are in a small community where everyone knows each other and people pretty much have been there for generations. One's bad name is a very potent deterrent in such situations. But for most of the country, including populated and metropolitan areas, forget it.
- Never do a contract with a good friend or relative unless your spouse tells you have to and it's a small job.
- Never give the other side a discount on your services, in hopes they will give you bigger and further jobs. They won't, and even if they did, they will expect you to do it just as cheaply because you have lost respect.
- Never take on a job or take over a job that is behind schedule unless you are a gambler. Never work evenings, weekends, and holidays to catch up for someone else's mistakes. When they have gotten what they want from you, they will not pay you the premium time. The only exception would be an old pre-existing client based on a T&M contract.
- Never tell the other side your personal problems or you may be having temporary financial issues.
- Never assume that what you are told will never be retracted. When it comes to a court proceeding, all is fair in love, war, and lawsuits. Have your agreements signed and confirm in writing important meetings and telephone conversations.
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