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Managent Company Changes And Wants To Change Contract!!

Discussion in 'Commercial Snow Removal' started by silvetouch, Dec 23, 2009.

  1. silvetouch

    silvetouch Senior Member
    Messages: 336

    I got 4 apartment complexes this year from a management company all on seasonal's not including salt. I got a call yesterday from a new management company saying that they are taking over 2 of the properties as a receivership. They are saying that they want to switch over from the seasonals to a per push and that they already got other bids and will give me my 30 day notice if i don't agree to it. I am making out good on the seasonals and will really get screwed on the per pushes. I gave the original company such a good deal, because they were giving me all 4 properties. I bought 2 more trucks just to make sure that these properties were taken care of. My attorney said that as long as there is a receiver in place, they have to fulfill the obligations of their contract and i have a good chance at arguing that because i have to make sure that i have enough manpower and equipment to maintain these properties for the entire season, that i am entitled to the full season price.

    Has anyone ever gone through this situation? Anyone else have any thoughts on this? I have until tomorrow to give them an answer.
  2. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    go and talk to the receiver in this situation, you may not have much of a leg to stand on because your contract may be with the management company that was fired/let go, so you would go after them for your money. i would however make it clear that it is in their best interests to retain your services weither a per push or seasonal contract, and that you could fight this in court, they may consider this even if you price is a little higher, that it well be easier to deal with you then fight with you where they may lose. just my thoughts.
  3. silvetouch

    silvetouch Senior Member
    Messages: 336

    the 2nd of 5 installments is just now past due and the lady from the new management company (receiver) said to send it over and they will pay it. so they seem to be cooperative on that note. They are not arguing about keeping us for service, just that we "must switch to a per push". And our per push seems to be at or lower than other bids they got. I don't i totally underbid the per push, but it was on the low side because i basically just threw a number in there at the last minute knowing i already had them on a seasonal (inside information). With regards to the original management company, my attorney gave me the impression that when a receiver is set in place, they are responsible for paying and fulfilling all current contract obligations set in place. Also, i was just going through faxes and noticed a general attention fax that came through the other day from the New management company (receiver) stating to send all invoices to them.

    WHAT A MESS!!!!!:redbounce:yow!::redbounce
  4. coldcoffee

    coldcoffee Senior Member
    Messages: 776

    Gotta love management Co's. Well, if I'm hearing this right...they want to pay you for November & December (the lean months) and then pay per push, as we get into the heavier months?

    To me it's a no brainer, and a risk I would be more than happy to take. Especially, since the lakes are probably nowhere close to freezing over. Who knows, maybe with any luck after they get their invoices for Jan & Feb, they will want to switch back to the month rate for March.payup

    Gotta wonder sometimes, how these people are qualified when hired to make these types of decisions.:rolleyes:
  5. silvetouch

    silvetouch Senior Member
    Messages: 336

    yeah, it sucks. It does kinda of seem like it would be a no brainer. But after reviewing the #'s, my seasonals are waay more beneficial to me even if it does snow. who hired me to do the pricing on that contract?? lol j/k My per push prices don't look like i will clear a whole lot after paying my guys (my fault). But i guess if it comes down to it, i can improvise with saltings. I already got Novembers Payment from the original management company; the new management company has said to send over Decembers for payment. And i think i am going to tell them i want Januarys too and then they can make the switch. I think its another "no brainer" that i am entitled to January's even if they decide to cancel all together, becaue the 30 day notice is gonna go pretty much through January.
  6. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    i well bet they well go for that too, and for the record, you may want to re evaluate your per push prices too.
  7. silvetouch

    silvetouch Senior Member
    Messages: 336

    yeah or maybe I'm Fired. ha ha. :gunsfiring::gunsfiring:
  8. coldcoffee

    coldcoffee Senior Member
    Messages: 776

    It sounds like you know what you want to do with it. All I can say is that I have lost properties for the same reason and also picked up a nice one a couple years ago, again for the same reason. I acquired the new place from a company who purchased the property with whom I had a long working history.

    I questioned their obligations to the previous contractor, and the simple answer that I was given was "The contract was w/ the previous owners...not w/ us." Regardless, if there was a breach or not...nobody really wants to throw time and money after something that may or may not happen in court.

    This is one of those judgment calls, where you have to just use your intuition. Unless the numbers are way out of sink, I would give them what they ask, because one way or another I will get what I want. If you think they are being unscrupulous and just trying to manipulate the deal...give them the deal they ask for, as long as they don't try to give it to someone else...which could still be a bluff suggesting they have others this late in the season...don't think I'd want to find out the hard way.

    One thing is for certain, I would be sure that there were no loop holes in the salt requirements...It's your call. So, to save the deal and a lot of hassle, I'd let them feel good about how they got me & we'll see who's smiling come spring.

    Didn't mean to rant. I just have a very low tolerance for companies who think they can manipulate a contract, even if they are a johnny come lately...they knew what was there before they took over...so F'em, cuz they don't care about you!
  9. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    If it was me this is what I would do, if you really want to keep it seasonal.
    1. Get December payment
    2. Write a letter exlaining your position, that your budget has been done with them as a seasonal, etc.
    3. If there still firm, have attorney send a letter. Generally this does the trick.

    let them switch to seasonal & rack up the trips:laughing: Take the switch to the bank.
  10. fms

    fms Senior Member
    from Maine
    Messages: 209

    In the interest of a long term relationship I wouldn't send in November's seasonal invoice. I'd be happy to have the two months of seasonal to offset bidding the per push on the light side.
    You have a great opportunity to build a relationship with a new client by being flexible and providing better service and communication then they've had in the past. Great situation to build business.
    Good Luck.
  11. forestfireguy

    forestfireguy PlowSite.com Addict
    Messages: 1,276

    FMS, makes an interesting point, this new co, can you make this relationship(which was forced on you) into a good thing that brings you more work, at this and other properties?

    As far as the seasonal/per push thing goes, be careful adjusting your per push prices to reflect the margins you have for the seasonal. As you said they already have other bids, if your numbers are not in line with what they have you know where the job is going.............not to you!!
  12. silvetouch

    silvetouch Senior Member
    Messages: 336

    I used to think that way as well; but these large companies have no loyalty anymore, they are all about 1 thing and 1 thing only....the lowest price. They try and use there own contracts with their own bidsheets, just so they can transfer everything onto a spreadsheet and see who has the lowest price.

    And, regardless of the little snow we have had, i bought 2 new trucks that's around a $1000 a month to make sure that these properties are taken care of as well as i pay my guys a minimum amount monthly even if it doesn't snow, based on how many properties there are.
  13. silvetouch

    silvetouch Senior Member
    Messages: 336

    Also, in regards to not really caring about a relationship to this company; when i talked about how many pushes we had last year; her response was, "i didn't have any properties push over 15, and most were around 12 or 13" LOL:laughing::laughing: I see most of you are not from Michigan, but we pushed anywhere from 18-23 times last year ( depending on triggers).
  14. silvetouch

    silvetouch Senior Member
    Messages: 336

    so far i like this answer the best. I'm not out to see anyone get screwed, but if it comes down to it....it sure isn't going to be me. :gunsfiring::gunsfiring::gunsfiring:
  15. plowguy43

    plowguy43 PlowSite Fanatic
    Messages: 5,264

    They're just fishing for a lower price, I say stick to your guns and have your attorney draft a letter.
  16. Mark Witcher

    Mark Witcher Senior Member
    Messages: 604

    If its gone into recievership, that means the original owners have filed bankrupcy. And IMO I believe old bills will be paid but all new contracts from date of their court filling is changed. Just the expierience I have had with companies going BELLYUP. And since you are a vendor and have no property claim your lawyer is just costing you money and you have no leg to stand on.
    Last edited: Dec 23, 2009
  17. silvetouch

    silvetouch Senior Member
    Messages: 336

    mark, i know what you're saying. I'm not sure as to the whole bankruptcy proceedings, but i know they have already extended the offer to pay what ever is past due, so i should be good there. And the new company has already acknowledged acceptance of the original contract by contacting me and even suggesting a 30 day notice. And with regards to my lawyers it is a family friend, while at the same time, i don't want to waste their time, its not really costing me money.
  18. silvetouch

    silvetouch Senior Member
    Messages: 336


    i did talk with my attorney about the situation and they did offer to do that soo far, however, i kinda want to see how far i can get without getting them involved, because my experience in the past is that once i get my attorney involved, everyone wants to just basically shut up and get their attorneys involved, which usually i get my money owed, but thats the end of the relationship too. If it comes to that point, i won't hesitate, but i want to proceed with caution, so to speak.
  19. mullis56

    mullis56 Senior Member
    from Indiana
    Messages: 824

    Legally if they have a recievership (ie - transfer of liability and assumption of existing contract in the purchase/take over agreement) in place you can enforce you contract to stand. You need to ask for the purchase or takeover agreement and give it to your attorney before you start talking to these clowns sounds like it will royally screw your company by switching to per push...therefore personally I would get them to get you the purchase/take over agreement then proceed forward accordingly. Best of luck to you.
  20. wirenut

    wirenut Senior Member
    from nh
    Messages: 507

    not to bust your balls but let me see.... you got insider info on the bid but now feel porked because you just threw out a number....:dizzy: