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Discussion Forum

Custom work – bids and change orders.

Phat | Posted in General Discussion on October 29, 2002 04:58am

Greetings all,

 

A friend of mine does high-end custom painting – faux treatments, custom artwork, murals and such. The work she does is excellent, the customers are always pleased, but where she gets into trouble, is with change orders. With such a subjective product, do any of you have advice on how to better define what the initial bid covers, and how to interact with the client when they start requesting variations.

 

Also, because my friend is so personable, her clients will start asking for additional artistic “consultation†– i.e.  “Which lamp shade do you like better?†Which, of course draws her away from the work she should be doing, the work she bid on. Since she doesn’t use power tools, can’t just fire them up to drive them away. Plus, alienating the client might be bad for future projects and word of mouth referrals. Any suggestions on how to “get back to work.â€

 

I’m also wondering if there are any books that might cover situations like these?

 

Thanks,

 

Ken

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  1. Frankie | Oct 29, 2002 06:48pm | #1

    This is a problem that anyone who does high-end work experiences. See, we are not hired only because we do fine work but because we are pleasant and trustworthy to have in someone's Home. We understand that we do not work on "Construction Sites" but rather in Homes.

    Having said this, we must also state (to ourselves first, then the Clients) that although we love what we do, it is a Buisiness. This is how we buy materials, pay our bills, support our families, move up the economic ladder and of course pay our taxes. Whenever I submit a Proposal or sign an Agreement, I include a blank Change Order Form which clearly states that "any additional work must be paid for In FULL and PRIOR to commencement of new work". This way I am protected from a Client loading the backend payment and trying to "renegotiate" the Agreement after the work is completed. Then they hold all the cards. The negotiation concept no longer exists and it's our own fault. We become a far second to their own interests rather than an equal as we began.

    Understand, that though there are Clients who premeditate additions to the job at a "discount" most don't get comfortable enough with renovations until they are well into it. This is when they get excited and pullout all the stops. And why not - especially if it's gratis. If we do not accept our role in Client Management, we are finished. Remember, it is the Client's role to get the best price they can and lookout for themselves....but it is OUR role to lookout for OURSELVES. This can get fuzzy when we are in their Homes for so long and see them at such an intimate level. We are there when they wake up, eat meals and have private conversations. But do not confuse THIS relationship with the BUISINESS relationship. Buying you lunch to encourage you to work an additional day, two, or three is great...for them. Not for you. Even when they say they can get you more work. If they want to be compensated for referrals, sign them up as your Agent, or at least tack on their "fee" to the job they get you - which you don't have to bid against others - and THEN give them their compensation.

    One last thing that may put what I am writing into perspective. I can build you a house with my own hands. I have done it and have been doing it for years. High school, college, and graduate school did not teach me how. Starting as a laborer and climbing in and out of/ through the job box and competing/ learning from other tradespersons did. But when I started my own company it no longer mattered how good I was at the construction trades if I did not try to compete on the same level in buisiness as my Clients - successful buisiness people who can afford to have this level of work done. They did not become successful by trading two days worth of work for a turkey sandwich or to have someone like them. They succeeded by being compensated for their merits - the service they provided, quality and dependability. And don't kid yourself that they don't get top dollar.

    Your friend's artwork is a buisiness, first. She should never forget this if this is how she makes a living. As for the "What do you think..." advice she is asked for: I have a three question rule. The first three questions are free and only if my work is not interrupted. After that I remind the Client that I also provide a Design Service or say that out of respect it would probably be best if the Architect/ Designer/ Decorator is consulted. It usually is nipped in the bud if the Design Service and Rates are casually mentioned when negotiating the Agreement.

    Finally, people respect others like or better than themselves. Demonstrate that you are ####good plumber and plumbers will respect you. Demonstrate that you are a good buisiness person and your Clients will respect you. You'll get the referrals and then some. This is a topic I wrestle everyday. Hope it what I wrote helps. Let me know.

    1. Phat | Oct 30, 2002 07:12am | #3

      Thank you for your response, I haven't had the chance to forward these posts to my friend yet. You bring up several good and thoughtful points, the one technique you use of including a bank Work Change Order seems like a good and effective method to inform and enforce that it is a business relationship first and foremost.

      thanks,

      Ken

      p.s. I've also posted this same note in the Business section

    2. Street18 | Oct 30, 2002 10:13pm | #4

      Frankie,

           Thank you for making me feel a little bit safer and comforted! Where I live we have had a lot of factories cutting back in man power,so the first thing they try is construction. The county clerks office filed 35 construction contractor packets in one 4 hour period!

           Needless to say I lost several clients for a brief period in time. But the good thing is that it brought in more repair and rebuild business. Some of these x-contractors would come in look at your proposal and offer to do it for 1/2.  Needless to say there was no paper work, just cash money.

           When I would be called after several weeks of them not getting any work done, my price would be the same plus the added price of removing what they attempted to do.

           I would never say I told you so, the embrassment of calling me was good enough.

                                                                        ernie

    3. jeffvermont | Nov 01, 2002 04:26am | #5

      Frankie:

      One of the finest and most succinct descriptions of the business side of the our trade that I have ever heard.  Thank you for putting into words what we all struggle with on a daily basis.

      Cheers,

      Jeff

  2. User avater
    jonblakemore | Oct 29, 2002 07:45pm | #2

    Turn the weaknesses into opportunities.  Her artistic eye is a selling point.  She should market both her paintin skills and her decorating skills.  At the very least she should tack on some extra time for this customer management time.

    Jon Blakemore

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