Business Management

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The actual story, not that uncommon – enjoy the narrative:

The integrator had to fly into San Diego to trim out the home in La Jolla; the owner was applying pressure to finish, and meet a payment milestone.

But the day before, a decent swell hit the coast and the sheet-rockers crew decided to work the session while Lower Trestles was going off (a world-famous surf break just north of San Diego).

That meant that the contractor could not deliver the gear, do the trim, no wall plates, keypads & panels – essentially missing the milestone.

Of course, he did check with GC and was assured that everything would be ready. But should have had someone he trusts check on site the day before, anyway - he shows up with the 2 man crew to an unready structure. Tucks his tail and heads home, really pissed.

Unable to bill until all that crap that got delivered and installed – to the tune of 60 grand, he’s thinking the sheet-rocking surfers had kidnapped his already earned funds.

Now, this loser has to deal with expenses of an additional trip and to have a hardball conversation with the contractor and ultimately the client about who is going to have to fund the needless trip.

At the end of all this drama, the contractor is financially damaged or his reputation takes a hit or both.

The one-day delay had some dire consequences for him, due to scheduling across his other work, he was unable to get back onto the client's site in San Diego for another 3 weeks. Largely lighting up the client who was applying pressure to finish.

How often does this kind of thing really happen? More than most would like to admit.

Explore how the agreement could be structured to provide more relief on the contractor’s behalf?

Scott Sullivan, of Sound & Vision, just north of San Francisco told us: “Be very wary when talking with GC’s about how ready the site is, virtually all the general contractors that he has dealt with have no ability to say that the project is behind… EVER!” A position that was verified by Patrick Hartman of DSI Reno, “We are hyper-diligent keeping up with the progress on each site, starting at least two weeks out of any scheduled work on the site.” Hartman emphatically states.

In our instance above the programming code compensation was linked to the installation of the wall do-dads instead of being called out separately.

A conversation with someone on site, with some experience in this discipline, should have taken place on a regular basis including the day before to confirm that the seclude is on track, as well as applying pressure to perform with his sheet-rocking crew.

So put a few dressings and band-aids on this wound, and do not let it happen to you (again).

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