How to Write a Good Construction Contract

contruction contractI rarely see good contracts. Most people just make some stuff up without really thinking about what they are doing but as you grow you will find it necessary to create a contract template that would take a beating from the talented and “useful” legal minds currently knocking clueless contractors into the poor house. Check out the products page for a fully legal contract template. This article does not constitute legal advice. Consult an attorney for more information regarding contract law.

1. Basics

A contract is an agreement between two people. It should always be in written form to avoid confusion. 

A contract can be changed when all parties agree through a contract addendum, amendment or in a construction contract a change order.

Signing a contract is called execution

A contract must be balanced, fair and drafted with the intention of not misleading either party.

It must name both parties along with their performance. Performance means what they agree to do within the contract.

A contract must meet all legal requirements of the jurisdiction in which it is subject.

continue reading

Powered by WPeMatico

Email marketing for Contractors

contractor marketing list

Most contractors don’t build a significant marketing database but they should.  Email marketing is a key strategy in keeping your business relevant in the minds of customers.

The obvious first step is creating a spreadsheet with customer emails. This takes consistent effort to retain this information. I always add customer emails to the contract themselves so the information doesn’t go missing after a few months.

How

Emailing your customers should be done annually or semiannually. I don’t recommend snail mail or any other form of mail because most people will trash it right away. But after they see your email they will do what everyone does with email. Leave it sitting their inbox as they go back to their lives. But fortunately when they remember they need a contractor they can quickly search their inbox for you recent email.

continue reading

Powered by WPeMatico

Fat Fingers & Naked Shorts

 

From Investopedia

“The illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be borrowed, before they sell it short. But due to various loopholes in the rules and discrepancies between paper and electronic trading systems, naked shorting continues to happen.”

Continue reading “Fat Fingers & Naked Shorts” »

cost segregation

Cost segregation is something people don’t talk about often. Most people are aware of tax depreciation associated with investment properties. Also most people use the standard variations of a few basic depreciation methods. However there are some pros and cons for the a real estate owner to consider concerning cost segregation.
Continue reading “cost segregation” »

The value of Bitcoin

bitTo use a basic standard when considering laws makes sense in the following ways. People are naturally good and most people are doing mostly right in their lives. Some people are demented or just get too greedy or angry. If you can admit the fact that most people are susceptible to some mistakes it seems only fair to not impose you mistakes on someone else and their mistakes on you. In essence every action should be voluntary. Passing a law per se is the opposite of voluntarism though and we do need laws.  The basic tenants of such laws is the need to focus on assuring parties agree to do that which they have agreed and also to protect parties from encroachment in it’s many forms.
Continue reading “The value of Bitcoin” »

On appearances

Pretend inferiority and encourage his arrogance   -Sun Tzu

 

This quote can mean so much it’s hard to really extrapolate the wisdom on first encounter.

First, consider the battle of Cannae where Hannibal handed am embarrassing defeat to the Romans. By drawing the Romans too deep into the enemy lines he leveraged their rush to victory by causing them to overextend themselves. In moments it became apparent that what seemed like victory was actually defeat. But the Roman commanders in the rear, eager for victory, pushed 100% of their energy into a seemingly broken enemy. We see this tactic used in many philosophies and even martial artist’s who study how to leverage an enemies momentum to throw them off balance.

 

Also consider how many times you encounter someone who brings you negativity and openly or subtly attacks you as a person. It’s natural to respond to any of these attacks but you have to wonder sometimes if it’s really worth it? Would you stop walking down the street to exchange insults with a stray dog? Probably not, because now you are investing valuable resources into something completely fruitless. Another saying which goes “walk softly but carry a big stick” is similar in the sense that it means to let things move right past you. If you need to strike, then strike hard but don’t waste time matching wits among people who can be easily overstepped with minimal effort.

It can hurt your pride but ultimately your rational thought process will give you an upper hand while you opponents, drunk with the chance possibility of victory, will stumble headfirst into their own undoing.

 

News From The San Francisco Federal Reserve

View the full document here. Mark Speigel from the San Francisco Fed details his optimistic opinions.

 

A few points to balance his views…

“Third-quarter GDP growth was revised upwards to 4.1% “

“Inflation remains below the Federal Open Market Committee’s (FOMC) longer-run goal of 2%”

Does this mean anything to anyone? I haven’t checked recently but considering they change the metric for calculating GDP and inflation as often as they change underwear it’s hard to value these numbers.

 

Shadowstats.com has some alternate metrics which were used by the government in the past. The include some very important data like food, fuel and home prices. As you can see they vary a lot from the governments reporting.

 

 

 

“The Committee will add to its holdings of mortgage-backed securities at a pace of $35 billion a month rather than $40 billion a month, and will add to its holdings of longer-term Treasury securities at a pace of $40 billion a month rather than $45 billion per month. The statement noted that asset purchases are not on a preset course. The Committee also indicated that it now anticipates that it likely will be appropriate to maintain the current target range for the federal funds rate well past the time that unemployment declines below 6.5%. “

 

It’s been a weird experiment to watch the monetary powers that be muddle through the economic crisis testing their footing as they step forward. But the language above is clear is day…they will attempt to withdraw QE unless a problem comes up.

Those potential problems could be the following;

1) Fall in real estate values due to higher interest rate

2) Higher interest rates for corporate bonds (more retail stores closing unprofitable locations)

3) Reversal of stock market prices

4) Gridlock in the derivatives markets

5) Reduction in Government spending

 

I could go on and on but these are the big starters which would kick off another recession. I do believe however that they will reverse course and begin printing money as required to offset any of these issues. Which is good in the short term because we can see business as usual but bad in the long term as the economy becomes brittle and weak.