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USM seasonal rate payment terms... you'll love this!

Discussion in 'Commercial Snow Removal' started by Ramairfreak98ss, Nov 11, 2011.

  1. Ramairfreak98ss

    Ramairfreak98ss PlowSite.com Addict
    Messages: 1,885

    cut and paste from their usps bid... i love it, you wont see final payment until you bill your 6th bill of the season on May 1st 2012... for may 1st - June 30th and so you wont see final payment until at least mid july ! Not that this is any different than them paying 90+ days late anyway, but thats their terms now... someone will sign it Thumbs Up

    You will be paid for Services based on a Seasonal Rate.
    A.) SEASONAL RATE: The Seasonal Rate described below covers all Services including all labor,
    material, and equipment required to perform those Services.
    B.) USM shall pay you a flat price for the Service that you provide at each CLIENT location during the 2011-
    2012 snow season (“Seasonal Rate”). The Seasonal Rate shall be paid to you in six installments. To
    receive the installments, you must invoice us on the first day of each month; December 2011 through May
    2012 your invoice shall equal sixteen (16) percent of the Seasonal Rate for the months of December
    through April. Your May invoice shall equal twenty (20) percent of the Seasonal Rate. Failure to submit your
    invoices as required above may result in non-payment.
    C.) Example:
    Example: Seasonal Rate: $5,000.00
    December 1, 2011 Invoice [16% seasonal rate] $800.00
    January 1, 20012 Invoice [16% seasonal rate] $800.00
    February 1, 2012 Invoice [16% seasonal rate] $800.00
    March 1, 2012 Invoice [16% seasonal rate] $800.00
    April 1, 2012 Invoice [16% seasonal rate] $800.00
    May 1, 2012 Invoice [20% seasonal rate] $1,000.00
    D.) Periods covered by Invoices
    i.) Each invoice represents a time period that you are either prepared to perform or performed services
    consistent with these Specifications.
    (1) December 1, 2011 Invoice covers the time period from the date the contract is signed through
    December 31, 2011.
    (2) January 1, 2012 Invoice covers the time period from January 1, 2012 through January 31,
    (3) February 1, 2012 Invoice covers the time period from February 1, 2012 through February 28,
    (4) March 1, 2012 Invoice covers the time period from March 1, 2012 through March 31, 2012.
    (5) April 1, 2012 Invoice covers the time period from April 1, 2012 through April 30, 2012.
    (6) May 1, 2012 Invoice covers the time period from May 1, 2012 through June 30, 2012.
  2. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Since they barely pay anything your not losing much.
  3. lawn king

    lawn king PlowSite.com Addict
    Messages: 1,070

    It just gets worse & worse with these people. If you plow bank of america, you have to beam them 3 pictures every time you plow the site! I dont know how contractors work for them and make any money!
  4. lilweeds

    lilweeds PlowSite.com Addict
    Messages: 1,178

    If checks cut on those dates those terms would be great. Give the new company a chance, you may be surprised.
  5. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Get with technology; beaming pictures is cake these days.
  6. buckwheat_la

    buckwheat_la 2000 Club Member
    Messages: 2,254

    Isn't this better then the 90+days out they have done in the past, and at least you have terms you can hold them to as well.
  7. mike ward

    mike ward Member
    Messages: 79

    Where do you sign-up...lol
  8. swtiih

    swtiih PlowSite.com Addict
    Messages: 1,179

    I remember an episode on man vs food where he took a hot wing challenge and signed a waiver that said something to the effect, by signing this I agree that I am an idiot
  9. juspayme

    juspayme Senior Member
    Messages: 116

    they dont. but they find new contractors who are clueless year after year and usm makes a profit
  10. buildinon

    buildinon Senior Member
    Messages: 583

    I have never been to keen on the 90 day net, but I currently have one. It is the largest contract I have and the money is always there. Been plowing it for 5 years and it's alot of work. They pay by the hour from the time my trucks are called out until they get back to the shop. Last season during Chicago's blizzard we een got free gas and diesel from them since the stations were closed. So since they go the extra mile so do we. They also pay seperatley for all salt. Since my guys have to go from site to tsite for them they do 15 min increments for billing, and we ushually end up w/ 2-5 hours extra billed per truck per event. It really works out in my favor, so I can not and will not complain about it.
    But for a company that pays that little they will get some newbie or some low baller who will jump all over it.
  11. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    The difference is,this one company and will pay you as opposed to that company which will try and finds ways not to pay you.
  12. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,954

    Typing in the dark again grandview or taking over tpc's English?

    As always.....if you cant live with the terms don't sign the contract. If you need money right away to stay afloat don't work for them....
  13. lawn king

    lawn king PlowSite.com Addict
    Messages: 1,070

    Technology is not the issue, whats next having the bank mgr walk the lot after every plow, who has the time for all this additional bull$hit, and for piss poor pay rates! Have at it my friend.
  14. hoskm01

    hoskm01 Senior Member
    from AZ
    Messages: 475

    Blame the customer, for whom you couldn't work for on your own. Like other's have said, if you cant send in three pictures from your drivers seat, don't take the work.
  15. lawn king

    lawn king PlowSite.com Addict
    Messages: 1,070

    You dont have to worry about that. I will walk away from snow before i would work for lowballer nationals!
  16. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Fixed it.Trying to say is, he was dealing with one company and they will usually pay. These maintenance companies try and find ways not to pay you or get you so mad you just walk away without the money.
  17. baddboygeorge

    baddboygeorge Senior Member
    Messages: 237

    Usm = joke!

    If you wanna work for some clowns sign the contract, USM, sucks!