Ever draw up an Exclusive Service contract b4?

[99'busa]

Well we're trying to get a big acct. with a large Townhouse community and they want us to do their painting. We were called by them because of our reputation from other properties. We've already done alot of work there but the other company they were using got desperate and cut their prices DRAMATICALLY.

The only way I can possibly match those prices is for them to use us EXCLUSIVELY for their painting only. They do agree to this verbally right now but given the desperation of the other Co. I don't fully trust this to happen. I can see them giving them some units here and there to keep them happy (because they ARE still using that construction co. for their renovation project)

So my contract or clause needs some sort of repercussion for breaking the agreement ie. stopping work completely, raising rates, fee of some kind, or other. I'm leaning towards a higher rate which I would have to do anyway but then should I retro it back so many units or a flat fee per unit they give away (would be hard to find out exact #)

I dont know. Maybe all I need to do is get my thoughts typed out so I can think straight

SO HAS ANYONE BEEN THERE DONE THAT?

 

[twotonevert]

Not sure about the situation Chris, but I would definitely cover my rear. Leave yourself an out in case they change the terms.

 

[Dino]

I would try to get an exclusive contract with the Townhouse community and offer to sub-contract out a (small) percentage to the other company. That way you get the exclusive deal and don't alienate the other guy. Also if his work is sub-par you can do something about it.

 

[99'busa]

I would try to get an exclusive contract with the Townhouse community and offer to sub-contract out a (small) percentage to the other company. That way you get the exclusive deal and don't alienate the other guy. Also if his work is sub-par you can do something about it.

well the problem is the profit margin is too tight now. I see what your saying but it would also mean I have to babysit incompetent painters which would be ADDED time for me. I can send my guys in and not have to even step foot in the unit.

 

[Mr Bogus]

I think you are going to shoot yourself in the foot here... If the margin is that narrow, then maybe you do not want the account anyway..

Trying to establish some type of repercussion if they step outside your services? (wont work I bet) But you could try something like below.. I did this with the City of Mesa when I did all their detail work on the auto fleet...

They want to save money... Let them pay out for your paint and supplies for THEIR jobs and the products stay in your control..

Not sure how much volume you are talking about but if they are set on saving, they will let you buy product in advance so that you have it on hand as needed.. 40 or so gallons of paint in your truck that belongs to them is going to keep them on your side..

Other than that, they are sort of in the driver seat..

 

[99'busa]

I think you are going to shoot yourself in the foot here... If the margin is that narrow, then maybe you do not want the account anyway..

Trying to establish some type of repercussion if they step outside your services? (wont work I bet) But you could try something like below.. I did this with the City of Mesa when I did all their detail work on the auto fleet...

They want to save money... Let them pay out for your paint and supplies for THEIR jobs and the products stay in your control..

Not sure how much volume you are talking about but if they are set on saving, they will let you buy product in advance so that you have it on hand as needed.. 40 or so gallons of paint in your truck that belongs to them is going to keep them on your side..

Other than that, they are sort of in the driver seat..

I agree a lot here. In this case we are the suppliers of the paint so I have to keep inventory at a minimum. The only safe thing I can think of is to let them know in the contract that their discounted price is for 100% of the volume of work.

1 year ago I'd tell them to pass my congrats on to that other co. they just won. I also use to think my co. was somewhat safe from a recession but whats happening is people are turning cut throat and slashing prices so low just to get any work they can and I'm left having to lower mine to keep what I got. Then we've got the Management Co. paying us months behind because people aren't paying their rent.

I could go on and on about how UNSAFE I am from this recession but thats another thread altogether

 

[Leo]

Here is a sample of an Exclusive Contract...

Sample Contracts - Agreement Concerning Exclusive Services, Confidential Information, Business Opportunities, Non-Competition, Non-Solicitation and Work Product - The Corporate Executive Board Co. and Clay M. Whitson - Competitive Intelligence for In

It's worth a shot IF you are still making money on each unit...

 

[Mr Bogus]

the problem is "enforcement" so what are you going to do if they buck the contract? unless you have legal on retainer, it is just a bunch of ink..

 

[Leo]

Actually this one is a little less verbose...

Sample Contracts - Exclusive Technical Consulting and Service Agreement - CGEN Digital Technology (Shanghai) Co. Ltd. and CGEN Digital Media Network Co., Ltd. - Competitive Intelligence for Investors

 

[Leo]

And yeah, don't count on enforcement, its not worth the legal battle. BUT, from my experience, it will keep MOST honest business people at bay.

 

[Mr Bogus]

I think he will do much better with an "up front" honest verbal agreement letting whom ever is making the calls know what he is putting at stake..

If they are an "honest" outfit, they will do there level best to keep the agreement..

If this was a big business to big business agreement, then it might be different IMO..

 

[Leo]

I think he will do much better with an "up front" honest verbal agreement letting whom ever is making the calls know what he is putting at stake..

If they are an "honest" outfit, they will do there level best to keep the agreement..

If this was a big business to big business agreement, then it might be different IMO..

I agree that the initial proposal should be personal, and have the whole handshake deal. BUT, as a follow up, I would put it in writing. Even for an honest business person, its much easier to just side step a verbal agreement that a written one. Also, who remembers a "verbal" deal 6 months, a year down the road? What is each party responsible for? what price did they agree to? All this should be in writing in the agreement. Not only will this keep both sides honest, but, if they forget what they agreed to 6 months down the road, they will have a clear document to refer to.

 

[Big Wall]

Absolutely do not do this as a verbal contract. I don't know what to tell you to keep from shooting yourself in the foot, but something does need to be in writing. If they break the contract you can go after them for the collection and court costs as well as what they owe you.

 

[99'busa]

the problem is "enforcement" so what are you going to do if they buck the contract? unless you have legal on retainer, it is just a bunch of ink..

I agree. This is why I never drew up contracts in the first place. Never really saw the point in it cause whats really gonna stop them from getting rid on you down the rode if they really wanted to.

I agree that the initial proposal should be personal, and have the whole handshake deal. BUT, as a follow up, I would put it in writing. Even for an honest business person, its much easier to just side step a verbal agreement that a written one. Also, who remembers a "verbal" deal 6 months, a year down the road? What is each party responsible for? what price did they agree to? All this should be in writing in the agreement. Not only will this keep both sides honest, but, if they forget what they agreed to 6 months down the road, they will have a clear document to refer to.

This is why I decided to do it. It's not bullet proof unless I put a bunch of legal desclaimers and mumbo jumbo to cover any and all loop holes that another lawyer would argue. However just the idea of a written contract would psychologically make them feel more bound and the threat that my prices would go up so HOPEFULLY they wouldn't want to risk it. Or at least the chances of backing on me would go down.

 

[99'busa]

I did meet a guy that runs a property last week and asked him if he's happy with who he's using and his response was "WELL..all I can say is it's getting done. But they still have 18 months on their contract left"

I was thinking DANG 18mo.? How long was the contract for? What did they put in there to make these people keep you even when they're not happy with you?

But it told me that maybe the people dont remember what exactly is in the contract or whether or not they can get rid of you but THEY DO REMEMBER A "CONTRACT" is enforce. After all it's a "CONTRACT"

 

[johnstein]

get paid up front for a wekks work for the crew 5000 , 10,000 what ever it is and keep a them with a running credit , as soon as it starts getting low invoice them again . do this alot with the commercial accounts , stops them from shopping around

 

[Big Wall]

I am a house painter also. If you would like I can e-mail you a copy of the contract that we use it may work for you or you can tweak it some to make it work. We never work without a contract. It protects us and the customer. Send me a PM if you would like to check it out.

 

[99'busa]

I am a house painter also. If you would like I can e-mail you a copy of the contract that we use it may work for you or you can tweak it some to make it work. We never work without a contract. It protects us and the customer. Send me a PM if you would like to check it out.

PM sent bro. I appreciate it. I stay away from residential but it still may work or at least give us some ideas.

 

[Mr Bogus]

I did meet a guy that runs a property last week and asked him if he's happy with who he's using and his response was "WELL..all I can say is it's getting done. But they still have 18 months on their contract left"

I was thinking DANG 18mo.? How long was the contract for? What did they put in there to make these people keep you even when they're not happy with you?

But it told me that maybe the people dont remember what exactly is in the contract or whether or not they can get rid of you but THEY DO REMEMBER A "CONTRACT" is enforce. After all it's a "CONTRACT"

If you have a vendor that is not all that great but "shows up" and "get it done" then you are going to buck up and take it.. To many times a job is delayed for days or weeks (money lost) so you just deal with it..

I have dealt with contractors on a number of occasions and the fact is, a sub that shows up on time is just about as rare as a non-viral liberal.. So I can see why they are reluctant to bail on a vendor in favor of a new one, too hard to get a decent one in the first place..

Any contract is pretty useless unless you can afford to take him to court..

I would offer the guy a quote on 5 units.. With that quote, you tell him how long from the initial call to completion.. (you know they need them turned ASAP so they can get a renter in)

If he bites you get two things.. the job and you will know your contract will mean squat (he smoked the other contract to use you right?)