Expensive Contracts

When fuel costs rise fast and rabidly, the real cost is not only the price of the fuel but in lost profits to businesses.

Particularly to the smaller construction contracting businesses because many of their quotes on larger projects have had to be done months in advance. And many of them have had to be fixed price contract quotes because some Project Managers / Developers / Financiers insist on a fixed price contract.

These rising costs for refuelling work vehicles every week, is costing some Building contractors serious losses. Particularly the least well organized/managed businesses

When contractors have to quote a contract three months in advance of a start date for the job, so the finance can be organized, these fixed price contracts can be a very expensive learning experience for the unwary contractor.

Any contract that does not have a contingency clause inserted can end up costing a contractor his reputation and his business.

Any contractor who signs a contract without seeking legal advice is guilty of bad Business practices and really needs to do some serious business courses before ever getting the opportunity of bidding on another contract.

It is so all so unfair. No-one could have foreseen the skyrocketing cost of fuel this year to cost it into the quote and still expect to win the contract.

But the question remains, how do they recoup this unexpected cost? The contractor’s who are caught in this vicious and avaricious contracting situation are often the new businesses that are hungry for the work and the least able to afford some of these ‘dirtier’ tricks that exist when contracting.

I wish I had the magic answer but there really isn’t just one. The only suggestion I could make to a contractor is to be more “fueltime-wise” and not waste fuel by making unnecessary trips.

This can be alleviated by using their Email to order materials and have them delivered or ready for pickup on a set date/time. And to take care with the order to make sure everything needed for the job was picked up at the same time. There is no reason whatsoever those small items can’t be delivered at the same time as the larger materials. It just has to be planned in.

So, perhaps the answer is the three P’s – plan, plan and plan.

If you have a contractor working for you and there is a variation to contract clause and your contractor says he has had to use the variation clause, and produces fuel dockets to prove his claim, then he is being honest and should be appreciated.

Any contractor who tries to use that clause for an exorbitant claim should be either:

1) Asked for proof of claim or

2) Removed from your premises at the toe-end of your boot!

If you have had a job done recently that you are happy with, then a nice gesture of “thanks” for a job well-done could be a fuel voucher.

It would be greatly appreciated, I guarantee you that!

Article Source: http://www.content.onlypunjab.com