Need experienced input asap please

Commercial
1

I have already asked Alex what he would do, and I would like to see if anyone else has any ideas to salvage this thing.

First off, a company called Johnson Controls called me up asking for me to bid on the Hewlett Packard buildings in San Diego. (If anyone has been subbed from them can you please let me know if it was a good or bad experience?)
They want a quarterly service, and it will take a 2 man crew running 2 poles about 5 days to complete. Glass is in good shape, sprinklers are irrigation (drip system) so no hard water issues.

So I meet with them today and they tell me the insurance requirements are 5 mil. liability, 2 mil comm. auto liablility, workmans comp of course, and 1 mil employers liability (I assume that is a bond?).

Their terms are Net 60!!!

I have 2 mil liability, 1 mil commercial auto and workmans comp. It will cost me roughly 3000 for the limits to be raised to 5, another 1200 for the bond, and maybe 2 or 3 hundred for the auto (not bad).

I do not have the 5 grand for the insurance costs to raise the limit (problem one)

Even if I did get the money, I cant wait 60 days for them to send a check that will probably be late.

The money that I would need would be about 6800 bucks for everything, insurance, pay my guys, tanks etc…

Can I find a way for them to waive the insurance requirements to what I have?
Can I get them to pay a percentage up front or is that unprofessional?
Is 60 days normal? Every account I have is a net 30, not 60. Even the government pays at net 30 or net 45.

Any wisdom and insight would be appreciated. Damien, if youre bidding on this too, what do you think?

2

It sound like you know what you need to do. WALK AWAY!!!

3

That is my first gut reaction, but it will be about 32,000 bucks for the year, would be my largest account. It would be well worth the money and would put me in a bigger ball game really.

What would you do to make it work? Any ideas?

4

Talk to your banker !! Kinda like a rv loan or farm loan deal !! People go a long time till harvest and such !! This is doable i think !! I live the midwest and ranchers and farmers do this type of deal till the market is right for them. It’s hard for a sm buss to do this type of deal !! Happyness is cash flow !! Stan

5

How many employees do you have or will it be you and 1 other person running a pole for 5 days on this job every quarter?

6

Why not see if the insurance company can come up with a solution, It may be possible to get your limits raised for just this job or maybe you could pay them in installments

7

No employees, 2 friends that have their own business that arent so busy. So it will be 3 of us. One guy on the squeegee taking care of doors and hallways that will make a mess with the wfp and me and the other guy using the wfp.

As for talking with the insurance company, I will talk to my broker, but its with Safeco, and I really would be suprised if they did do something like that.

You guys wouldnt be worried about Johnson Controls not paying?

8

It is worth the money because with WFP you will get the job down to 3 days if you clean with a system.
One guy using a light carbon fiber pole $2,475.00 for the simpole 60’ you buy here from .wrc.
Another guy using the other pole right below him using the water run off from the the other pole.
We clean 6 floor building this way in one day.
You should get a discount from your Ins. for using a WFP and not hanging on the Job.
Phil
SimPole INC
865-256-2226
send us pictures of the Job and I will help you on how to clean them,
We have used WFP for over 25 years!
[email protected]

9

I might come back to them w/ a counter on the insurance. Tell them this is what I carry and I would be willing to add the bond and extra auto but increasing my GL is out. See what they say. I would also add a clause to the contract that stipulates payment in 30 days (max) and a serious late payment penalty. A contract should protect both parties not just be in the best interest of one side.

10

I have alot of history with Johnson Controlls just not in Window Cleaning. In a past life I sold them industrial equipment and they are VERY VERY slow pay. I would suggest that you work on the terms with them . If your invoice differs from their PO at all it will be delayed.

Just a heads up!

11

Appreciate the offer, but I think that the cleaning part wont be a problem for me. The problem is the insurance limits and the net 60.

Mr. Squeegee, that is a good idea. I already have a penalty of 15% per month if the payment is late past 15 days after the 30. Problem is actually getting that penalty. I have a customer right now that owes me 750.00, and made me jump thru some major hoops to get this gig. I had to pay 75.00 to register on their insurance monitoring web site, and go back and forth with wording on my contract and certs! As of today, they are 62 days late. I called and they said it should be in my hands in a day or 2. Yeah right.

Thats only 750. I dont want to be sweating 8 grand.

So, I have alot to try and ask them for sure. Thanks for all the advice.

12

Tell them you need to have a deposit of 50% up front and that will secure them a place on your schedule.
I have never heard of this company, but I do this with bigger jobs, and wished I would have done this with certain other companies.

13

Most insurance companies allow you to pay via monthly installments often at no extra cost ( in Oz anyhow ) that is how I pay my vehicle/Public liability etc.
The job sounds too good to miss. I would change the terms too 45 days though. If they are happy with your quote then they are not going to haggle over that.
Remember its you providing the service so you set the terms.
Good luck