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Client Re-writes Contract & Scheduling

 
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Old 08-27-2019, 07:46 AM   #1
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Client Re-writes Contract & Scheduling


Hi Everyone,

I just landed a decent size contract (Electrical) with a large hotel for about $100K. The work itself should only take about 7-10 days at most.

I sent them the contract (5-6 pages with all legal stuff on it), and they basically had their legal department re-write it in their own format with a bunch of changes, none which affect the work or payments.

Mostly has to do with the insurance requirements, change orders, liens, and they added that work must be completed within 60 days of acceptance. 60 days is plenty to perform the work, but I have no idea if the city will take 2 weeks or 2 months to approve the permit.

Should I have them change it to 60-Days from Permit approved date?
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Old 08-27-2019, 07:49 AM   #2
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Re: Client Re-writes Contract & Scheduling


There is no way I would let anyone rewrite my contract. The only reason they would do that is to benefit themselves.

I would have my own lawyer either look it over or tell them they have to sign the original

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Old 08-27-2019, 08:21 AM   #3
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Re: Client Re-writes Contract & Scheduling


Nothing at all wrong with you adding the "60-Days from Permit approved date" line.

If you do larger projects with sophisticated clients and subs it's not unusual to mark up a contract and make changes to a parties liking, it's part of the negotiation process. Have seen things like this go back and forth several times. The important thing is .... Can you live with the changes?

You really need to pretty well understand all aspects of construction contracts yourself if you are in this for the long haul as attorneys almost always over protect the client they are working for and can make it hard to reach compromise.

Get an attorney involved if this type of thing is above your level of comfort, or simply refuse the changes, move on and find another project.
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Old 08-27-2019, 10:01 AM   #4
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Re: Client Re-writes Contract & Scheduling


$100K for 7-10 days? If legit, make it work, but at the same time, if you're only issue with the re-write is the time-frame, nothing wrong with you amending it to reflect reality of issues that are outside of your control...

You know... you can't be held liable for Acts of God, permits, scheduling conflicts with other trades, material delays, strikes, weather, or other delays that are beyond your control...

Just re-send them their amended version along with the amendments that you think protect you, but at $100K for 7-10 days, you might want to consider putting a little coin out to have an attorney review it for you if you don't have one on retainer...

Last edited by KAP; 08-27-2019 at 11:07 AM.
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Old 08-27-2019, 10:56 AM   #5
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Re: Client Re-writes Contract & Scheduling


There's a good amount of material, fixtures for this job. I wish it was $100K in just labor...

I think I'll just have them edit it to show 60-Day after the permit is approved.

I was actually just talking to a GC who does lot's of hospitals, surgery centers and he said it's pretty common for his clients to have the contract re-written by their legal department. Said those places have 15-page contracts for their toilet paper supplier....
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Old 08-27-2019, 10:58 AM   #6
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Re: Client Re-writes Contract & Scheduling


Did they add a "pay when paid" clause?

Be careful how time constraints are worded
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Old 08-27-2019, 11:53 AM   #7
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Re: Client Re-writes Contract & Scheduling


Only legal team that I will allow to re-write anything in my contract and myself and my attorney
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Old 08-27-2019, 12:02 PM   #8
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Re: Client Re-writes Contract & Scheduling


Very common for commercial contracts to be full of hand written add ons, deletes etc.

If your job is in a hospital or medical facility be VERY careful of policies, rules, regs and pricedures as they can ruin your day FAST!!!!

Out here anyways....
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Old 08-27-2019, 02:06 PM   #9
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Re: Client Re-writes Contract & Scheduling


Quote:
Originally Posted by griz View Post
Did they add a "pay when paid" clause?



Be careful how time constraints are worded
Was just about to say it.

It says Sales/Contract Negotiations under my title on my website for a reason - like Fishing said when it gets to commercial and high end customs some negotiations will often take place

I always just send it to my lawyer as long as I know we're making a deal. That most it 600 bucks unless she rewrites it, and she's a bull dog. Shell catch anything out of the ordinary

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Old 08-27-2019, 02:08 PM   #10
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Re: Client Re-writes Contract & Scheduling


Quote:
Originally Posted by Stunt Carpenter View Post
There is no way I would let anyone rewrite my contract. The only reason they would do that is to benefit themselves.

I would have my own lawyer either look it over or tell them they have to sign the original
That's not necessarily unreasonable.

My parade home the guys attorney asked to change the payment schedule because he knew I front loaded the **** out of it.

I said sure, how about these draws? We made a deal, I got a 7 figure custom out of it

So yeah it benefited them but didn't really hurt me

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