Government Funded Reverse Contracts.

Forry

Originally, as fill in work, we have done a ton of work for a local non-profit org. for ADA improvements, low income improvements, etc. Excellent for fill in, and because of the relationship I built with the facilitator, we now get all jobs under $3,000. Jobs over that amount they need "competitive" bids, but don't take the low bidder. We win most of these contracts due to their past experience with other contractors... they prefer our reliability, including quality of work and thorough bids eliminating change orders. Basically we get the jobs because they know what to expect with us.

Now, our name has moved up the line to the Department of Human Services, doing the same types of work, but more, funded by the Department of Justice. Good stuff.

Here's the catch... Through the current program doing the funding, jobs under $5,000 will be awarded to our company. I submitted the bid for the first one, and got approval over the phone by the chairman of the program, but they use a reverse contract system. Policy prohibits them signing mine. Their contract legally castrates me. No real protection for my Co. I have a good feeling that things will go well, and want the work, but I'd basically be at the good graces of the government. Not ideal.

I'm thinking I'll take the risk, and am fairly confident that things will go well, but the idea of signing my rights away is more than a little disturbing.

This connection is important for this kind of work. Same folks have many other programs funding larger projects, and the work seems to be awarded based on criteria other than lowest $.

Any thoughts?

__________________
now i am scared for my future
i've got all ten
smashed a lot of them stupidly before
-john5mt

Forry

No one even interested?

Sad for me...

__________________
now i am scared for my future
i've got all ten
smashed a lot of them stupidly before
-john5mt

GregS

How can they legally castrate you? They can't write something into their contract that would be illegal. What points are you concered about?


And geeze, you posted on a Sunday afternoon and followed up 40 minutes later.. Give people time.

tinner666

I'm at a loss here. Just don't get it.

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Frank Slate Roof Repairs, Richmond, Va.

Chris Johnson

Contracts are meant to be negotiated, you don't just read and sign. I would review it and make notes, schedule a meeting to review your concerns and how you want the contract worded. The best answer is to take it to your lawyer, but remember, lawyers have one thing in their mind when you hire them, they work for you and will rewrite the contract in your favor, now the other side won't sign it.

If you get it worded right now they way you want it, it will become a standard thing between you and the other party moving forward, you don't change anything and try and change it a job or so down the road it won't happen.

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Chris

Forry

No negotiations. This contract was written by overpaid DOJ lawyers, and it's gonna stay the way it's written.

My lawyer's out of town 'til the 2nd, and I kind of screwed up... I thought my meeting with my lawyer was monday the 26th... told my contact I'd get back to him on Tues. the 27th. Now, looking at my schedule, it seems my meeting isn't until the 2nd. DHS dude needs a response on Tues.

Issue 1) Payment terms per the contract state that funds are available after work is completed. I like 1/2 up front because the state takes 2-4 weeks to pay final. My DHS contact assures me that he'll get the 1/2 for me, but the contract says differently. He says it's just the contract, and that he's got me covered. Fine, I'm OK either way, but I take contracts seriously, and don't like the discrepancy.

Issue 2) One-way hold harmless. I usually have it in my favor, now it's in their favor. Yikes.

Issue 3) Termination. We can mutuallty terminate the agreement, or they can fire me, but I can't quit without 30 days notice. The job's less than a week, so really I can't quit. State funded on a private residence, if I run into problems with the HO, I basically have no recourse, I just have to grin and bear it 'til I get it done.

Issue 4) ADA compliance. Project was designed by the HO, and to match the grant, isn't ADA compliant, just an improvement. Contract states that all work will be to code and ADA compliant. If someone balks, I eat it. Again, no changes to the contract allowed, and no riders or disclaimers. Youch.

Issue 5) Scope of work. Just noticed this one, and I can probably fix it with a phone call Monday... Scope of Work on their contract states three exhibits, only one was provided. I CAN'T sign anything until I get that resolved.


Anyways, I've done plenty of work funded by these guys, but through a non-profit subcontractor who was more than willing to sign my stuff, and want to work with these guy's, but I HATE HATE HATE their terms.

__________________
now i am scared for my future
i've got all ten
smashed a lot of them stupidly before
-john5mt

Chris Johnson

Issues 1 & 2, standard clauses, Issue 3 needs rewording, or addendum to if you get fired, payment is due with XX days for completed operations, Issue 4 add addendum that all work will be completed as per provided plans and once accepted by local building department jurisdiction it is accepted by them, Issue 5 The other 2 exhibits are going to consist of the drawings and spec's (Normally).

If your contact is so good with you and can promise the world, he can change the contract and do addendums, don't be bullied.

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Chris

Forry

Guess I could push back, and insist we get the changes I want, but I don't think it'll work. I suppose I need to decide if it's worth it. I took him on his word he couldn't make changes.

__________________
now i am scared for my future
i've got all ten
smashed a lot of them stupidly before
-john5mt

Kaiser

Your looking a gift horse in the face and saying gee wizz I'm not sure.

Quit all of the belly aching and step up. If the contract states all work must comply with ADA codes and the scope doesn't meet code tell the man you can't do both.

I read your post and it's full of I can't and they won't how will you know unless you ask. How many people have ever told you they did work for the Govt and never got paid.

For the love of cheese you are talking about a contract under 5 g's if thats to much risk tuck your tail and run Nancy.

Your in this position because they like your work, keep up the good work and you'l be here crying about you 500,00 dollar contract soon.

If you go through life running scared because you might get screwed your in the wrong business.

If you don't want guaranteed Govt. work I'll take it.

__________________
"Go confidently in the direction of your dreams. Live the life you have imagined."
Henry David Thoreau

Forry

OK, I guess you're right, I'll quit cryin' and get to work. That's how I was feeling, just worried I guess.

Thanks for the B!tch slap.

__________________
now i am scared for my future
i've got all ten
smashed a lot of them stupidly before
-john5mt

Kaiser

My pleasure.

You'll do fine. Good Luck

__________________
"Go confidently in the direction of your dreams. Live the life you have imagined."
Henry David Thoreau

joasis

I would love to be in your position on low dollar contracts like these. I can't even imagine where this will lead if you take care of business.

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Forry

Thanks, I'm hoping for good things. I submitted a bid last year for an apartment complex rehab funded by DHS, and managed by a local non-profit. Still don't know whats happening, but my bid came in just over $600,000. My contact at the non-profit thought things looked right, and I don't know whats scarier, getting the job or not. I guess getting it, 'cause things are fine right now.

Anyways, thanks for the input guys, and I'm sure it'll be fine.

__________________
now i am scared for my future
i've got all ten
smashed a lot of them stupidly before
-john5mt

SelfContract

Just wait few months for Obama's stimulus package distributing... his $$money sure coming your way...