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How would you take care of this contract dispute- city contract.

Discussion in 'Business Fundamentals' started by Shop's Lawn, Jan 11, 2012.

  1. Shop's Lawn

    Shop's Lawn Senior Member
    Messages: 147

    I want to run this by everyone and see what you think or would do about it.Sorry kinda lengthy.

    I was awarded a city contract for plowing 6 parking lots. Paid monthly contract.
    The city opened it up for bids in november- I was awarded the contract late november. The contract in paper runs from dec 1,2011 to march 30,2012.
    I turned in all my insurance paperwork and signed contract in front the park director,city clerk and two office personnel on Dec 15. This delay from nov 30th to dec 15th was the city attorney had to write up offical contract. I had given them my insurance certifcate at that time that I have always used and came right from insurance agent. They called me the next day to see/get the orignal document from my insurance company,I dropped the orginal off on dec 17th. Head park director said it was all good and ready to go and if we got over 2" of snow that I would need to plow the lots. City mayor was not in that day when I signed and director would have him sign it right away. I never heard anything back but we didnt get any snow over 2" on the city lots. I got a call Jan 4th saying the city attorney and my insurance have been talking about workers comp. I called my insurance guy and the city attorney only e-mailed him once on Jan 3rd. Done deal- all insurance was over what the city was asking for, no changes. I called the director back and told him she(city attorney) only e-mailed him once on jan 3rd. I did send my bill in for dec payment on the 20th of dec like I was told to do by the head parks director so I would get paid Jan 15th for Dec. The director then said well the mayor has not signed the contract and here we sit Jan 4th and now he is not sure if they will pay for Dec. Said he would let me know but I have not heard from him since. I left him two voicemails, no return calls back yet.
    Since I got this contract I ended up pulling the trigger and buying a wheel loader to stack piles and help out with some of my larger commerical lots- I would have waited til next year to get the wheel loader if I didnt get the city contract.

    What are you thoughts on dec payment?
  2. DodgeBlizzard

    DodgeBlizzard Senior Member
    Messages: 526

    Contract states you don't plow unless you get 2"? You didn't get 2" but you plowed anyway? Might not get paid just on that detail alone. I understand the 2'' trigger for the first push. But why wouldn't it read 2'' before the first push, or unless storm has finished and less then 2'' falls, plowing should be done after storm completion. If it was me, I would go straight to the office and get it handled before any more work is to be done.
  3. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    So it wasn't a set price then paid out monthly?
  4. IMAGE

    IMAGE Sponsor
    Messages: 1,747

    Sounds like it was a fixed monthly price. (basically a seasonal)

    Also sounds like they owe you money. Is it worth the attorney's fee's to get paid for the month? Is there a possiblity of being excluded from bidding next year if you do retain an attorney for collections? (you don't need to answer here, just somethings for you to think about)
  5. Shop's Lawn

    Shop's Lawn Senior Member
    Messages: 147

    Sorry i was kinda unclear- the trigger depth is at 2". We didnt plow the lots at all in Dec due to no storms over 2" on the lots. This is a paid monthly contract. Staes goes from Dec 1st to March 30th and I was told to send invoices around the 20th of each month then see a check the 16th or 17th of the following month so I would receive Dec payment on Jan 16th or 17th. The contract is 2000.00 a month so nothing huge but still a good amount for the sizes of the lots. I do live in the city so like to keep a good relationship with them for future work but may come to a point is it worth it dealing with goverment issues at some point.
  6. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    Since it hasn't snowed I think he's fishing and is trying to play off that the contract wasn't singed.
  7. IMAGE

    IMAGE Sponsor
    Messages: 1,747

    I agree with GV. On the flip side, If it would of snowed they would of held you to the contract since you had signed it. It's not your fault they waited to sign it. In the end it's your decision how to handle it, but I think everyone, including a judge, would agree they owe you for the month.
  8. BSDeality

    BSDeality Senior Member
    Messages: 736

    i would go pay the mayor a visit and explain the situation to his face in a calm manner. if they still play games with you, take out an editorial in the paper and cause a shitstorm for him.
  9. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    Its not january 16th or 17th yet.....the nice thing about working with "government" is you can walk right on in.....the mayor works for you....
  10. cretebaby

    cretebaby PlowSite Veteran
    Messages: 4,162


  11. Raymond S.

    Raymond S. Senior Member
    Messages: 513

    I wouldn't hesitate to remind him it's an election year... :)
  12. Matson Snow

    Matson Snow PlowSite.com Addict
    Messages: 1,985

    Your Right......Sometimes they need to be Reminded of that.....Thumbs Up
  13. theholycow

    theholycow PlowSite.com Addict
    Messages: 1,180

    I'm with these guys.
  14. Shop's Lawn

    Shop's Lawn Senior Member
    Messages: 147

    Yes you are correct and there is only one guy running against him this year- which was a really good guy that was on city board for many years and I think it will be a tight race for mayor. I feel the same- if it would have snowed they would have been on my back every half hour to get them plowed. I tried calling the director today again but he out of the office. Gonna stop down there tomorrow. Thanks everyone that chimed in! I wanted to see how every one else felt about it. See if december payment comes in the mail soon!
  15. Shop's Lawn

    Shop's Lawn Senior Member
    Messages: 147

    Update- I got a letter in the mail today from the city about the contract and Dec payment. Says- as you know the afreement was to be in effect from dec 1 through march 31,2012. The council approved the agreement on Dec 5th. ( Dec 5th because the didnt get bids until Nov). We received your certificate of insurance on dec 15th,2011. It was approved on Jan 5th. Due to the processing time to provide information,insurance and the city attorney checking on infomation we received. We feel the contract amount is not appropriate. However since you made every effort to comply in as timely manner as possible,we feel a compromise payment for half the amount is appropriate and have processed payment for that amount. We appreciate your continued cooperation adn do look forward to working with you.

    What do you guys feel I should do? Leave it as that? Ask for full amount?
  16. CityGuy

    CityGuy PlowSite Fanatic
    Messages: 17,220

    First off no matter what happens be sure to suggest to them that someone from public works or an offical city employee make the call as to when the lots are plowed.

    If I have this straight, you have a signed contract between you and a city official for an amount to be paid monthly at $2000.00 dollars. If this was in the original rfp (request for proposal) then you need to get an attorny and go after them. If they believe the cost is too much at this time then they have to go back and put out a new RFP for the work. Any attorny and judge is going to award you the money in a heart beat.
  17. KBTConst

    KBTConst Senior Member
    Messages: 426

    So the council approved your bid with out seeing a proof of insurance? If it was approved at the Dec 5th meeting I would go to the next meeting and explain what has been going on I'm sure they will side with you.
  18. Longae29

    Longae29 PlowSite.com Addict
    Messages: 1,953

    You had equipment personnel and salt ready on dec 1st per the contract, if it would have snowed you would have been ready to go, that's what a seasonal contract is and you should be paid accordingly. You were awarded the contract late november...
  19. RLM

    RLM PlowSite.com Addict
    Messages: 1,270

    Your contract was awarded and started DEC 1 if that is what the bid says, that is where you determined where your numbers, costs, etc from. Personally I wouldn't accept the partial payment because I think they are testing you. We deal with multiple government agencies the bigger they are in my experience the easier they are to deal with because they are further removed fron the budget process, money is tight across the board for everyone, but is realitive to the size of their budget. There could also be politics involved meaning your bid was slightly under someones friend or relative & because you checked out they had to use you, an this is someones way of sticking it to you.
    Last edited: Jan 15, 2012
  20. Mr.Markus

    Mr.Markus PlowSite Fanatic
    Messages: 5,779

    From what you've told us the contract start date is Dec. 1. Regardless of their processing time that is what they are on the hook for. They agree to use you they agree to your proposal. I personally have lost municipal bids over $1 that I held for a dozen years...don't think that if you agree to cut them some slack that they will take a shinning to you. Get the contract that you won.