They don't get paid because they don't do a couple of simple things: they don't set the table correctly, so they're not able to eat. Simple cause and effect. Said another way, they don't get paid because they don't ask properly. And for today's session, asking properly doesn't just mean saying ''please.'' We'll come back to this in a minute.
Today’s session began by proclaiming that too many contractors do way too much work for free, and I stand by that statement. But before one of our team members agrees or disagrees and decides that he’s already doing everything correctly, answer this question: How much work did you ''donate'' last year to your clients? If it’s zero, that’s good. If, however, you are like most contractors, there will be several zeros, with a whole number in front of them! And that’s not so good.
Because this is an important meeting, please take notes. There will be a test, and it will be given by your clients. Failing that test is not an option.
This coaching session comes with a guarantee, and it’s ironclad. Your part: attend each team meeting here and just pick up on one or more ideas that you kind of like. Implement it — not because I say so — but because it makes sense to you, and it seems likely to work in your own business. Maybe you’ve heard the same things before — from your friends, a sub, or a supplier. Your gut will tell you two things: it’ll take some work on your part, but it’ll probably also work for you. Implement at least one idea for at least three months, and see if it doesn’t put thousands of dollars in your pocket. My part: If it doesn’t work, or is a waste of time, I’ll send a free copy of my new book to your toughest competitor!
Read my articles as well as the others in this magazine that apply to you, and you’ll revolutionize your business. You’ll earn a ''Practical Masters’ Degree'' in the business of construction, and you’ll become a more valuable player on your home team.
Okay, We’re Back to Where We Left Off — Learning How to Ask Properly
Know, Know, Know! — Yes, Yes, Yes!
Simple message: know your scope of work; know your plans and specs; know your rights and remedies. That’s the beginning of knowing how to ''ask properly,'' and here’s why: before we can talk about the whole concept of getting paid for ''extra work,'' let’s get some definitions — establish some basics. Here we go.
Question for you: What is extra work? Most contractors would answer that it’s work which is not a part of their base contract. What’s your answer? Full Contact Project Management says that, at best, that answer is just ''okay.'' A better answer is, ''Extra work is actually work which wasn’t included in the bid, is going to be performed, and somebody will pay for it.'' For the purposes of our team meeting, let’s agree that we always want to be the payee, not the payor!
Why is this definition important? Because extra work doesn’t only mean, for example, the cost of adding an extra bathroom to a building. It needs to include a careful analysis of what’s included in the building. Is that what the plans and specs showed? Were any bathrooms included? Did the specs say that bathrooms ''may'' be included, or ''shall'' be included? An important distinction, and we’ll come back to that in another meeting.
So, does this mean that, as contractors, we have to be confrontational on every issue? Certainly not. I’ll actually tell you what it means, but first we need some background, and here it is.
At virtually every pre-construction meeting I’ve ever attended, the subject of change orders is addressed — RFIs, approvals, processing, payment, etc. And this is normally where the owner’s representative feels obligated to say something like, ''But there aren’t going to be any change orders — right?'' He’s nice about it. He smiles big. Everybody laughs. Why? Here’s the reality:
The owner is pressing for no changes.
The architect is praying for no changes.
The construction manager has already promised the owner that there will be no changes.
That’s a lot of pressing, praying and promising going on — and it’s not in your best interests!
Because — are you ready? They all believe that your bid includes everything, even the stuff they know they inadvertently left out, but hope you’ll catch — and fix — for free.
On the other hand, here’s the way it usually works: you are sitting there, probably thinking to yourself something like, ''Man, I’m way too cheap already and I didn’t include anything for contingencies.'' And even if you did happen to be ''fat'' on this job, only you know that fact (it should be a closely-guarded secret) because you were selected not only on the basis of your good looks but also your low bid.
With this background out of the way, we can now proceed with how we ask for what is rightfully ours.
We are never confrontational, but we are always confident. What’s the difference? Confrontational people are scared, bitter, ineffective, table bangers and shouters, and others don’t like dealing with them.
About the Author
Gary Micheloni is a working project manager, author, consultant, and speaker. You can reach him by going to FullContactBlog.com, Go on over to FullContactBlog.com, and get some of the free helps and articles he has there. You can also go there to pick up his new book, Get Paid for a Change! The Contractor’s Blueprint for Turning Extra Work into Extra Money — through Change Orders''. Go there now — you need this stuff.
