Harrison Law Group November 2019

November 2019 Te Contractor’s Advantage

www.HarrisonLawGroup.com (410) 832-0000 jwyatt@harrisonlawgroup.com

Warming Up With Delicious Food

As the cooler weather sets in, I can’t think of a better time than cooking a warm, hearty meal. One of my hobbies is to cook elaborate dishes (and then eat them!) — my current “white whale” is cassoulet. A cassoulet is a slow-cooked meat and bean dish with many rich flavors. The traditional French dish can take many hours spread across a few days to complete, and it is one I intend to master. You start by making duck confit: duck cooked in its own fat (don’t tell my doctor). Then you prepare boudin sausages and a ragù sauce. The ragù sauce is a blend of tomatoes and either beef or pork. Boudin sausages are a type of sausage often found in French and European cooking. Once everything is prepped, the cassoulet goes in the oven for several hours. As it cooks, a crust forms over the top. After a while, you push the crust into the dish and continue baking. Here’s the recipe I plan to use: BonAppetit. com/recipe/classic-cassoulet . It’s time-consuming and can often be complex, but I love cooking dishes that have a complexity to them. French cooking is not necessarily difficult, but it does require patience and attention to detail. In many ways, I use cooking as a form of meditation. You’re focused on what you are doing, trying to put everything together just right. The cassoulet has so many different pieces that ultimately come together in the final dish, and when it does come together, there is something extraordinary about it.

need to come together on a case. It’s a lot of hard work, but when everything finally merges, you know your work is going to have a positive impact on your client’s life or business. That said, the biggest difference between cooking and litigation is that the opposing counsel isn’t yelling at you from across the kitchen (please note that I am refraining here from any marital humor). When it comes to Thanksgiving, we don’t stray too far from the traditional. While we won’t be hosting and making dinner this year, in the past, we’ve had a spread of turkey, gravy, potatoes, and the works. What I really find interesting about Thanksgiving dinner is that a lot of people don’t make their own gravy. They opt for store-bought or skip the gravy altogether! A lot of people tend to be intimidated by gravy, as strange as that sounds. But when you cook a turkey for Thanksgiving, you’re typically left with a lot of turkey stock that drips into

the pan. This is perfect for making flavorful gravy. All you really need are equal parts butter and flour to make a roux in a pan, and then you add the stock and a bouquet garni of herbs (a bundle of herbs with bay leaf, thyme, parsley, and others you like). It’s just a matter of bringing those ingredients together and not overcooking it. Of course, every family has their own methods and traditions. No matter what you serve this Thanksgiving, I hope you have a wonderful holiday with plenty of food, family, and friends around the table!

-Jeremy Wyatt

It almost works like litigation. There are so many component pieces that

jwyatt@harrisonlawgroup.com | www.HarrisonLawGroup.com | 1

Published by The Newsletter Pro • www.newsletterpro.com

BREAK AWAY FROM BLAND

How to Write Content That Pops

As awareness about the global impact of climate change rises, consumers have started to vote with their dollars for companies that offer greener, more sustainable products and practices. Slowly, that groundswell has caused businesses to shift their priorities and take steps to track and reduce their environmental impact. But long before the green movement began in earnest, there was Ray Anderson — one man who decided to flip the script. In 1994, Anderson was 60 years old, the CEO of the modular carpet company Interface, Inc., and no more environmentally aware than his contemporaries. But when his customers started asking about the environmental impact of his carpets, he dropped into the rabbit hole of environmental research and emerged a changed man. He had a new goal for his $1 billion company: It would take nothing from the earth that the planet couldn’t replace. In 2009, Interface created and sold over 83 million square yards of carpet without negatively impacting the planet or losing revenue. Anderson chronicles his journey from point A to point B in his book, “Business Lessons from a Radical Industrialist.” According to Inc. magazine, Anderson, who passed away in 2011, was considered “the greenest CEO in America.” His company mastered sustainable innovation, and its patents, products, and processes are revealed in his book, which is as much a guide for entrepreneurs of the future as it is for those of the present. One reader on Amazon reviewed the book as “Inspiring,” writing, “If only the world had more Ray Andersons. The fact that he turned a company reliant on the use of petrochemicals for the production of its core product into [a company] with sustainability as its core ideology and was able to improve his profits is outstanding. Any and every company can learn something from this book.” If you’re trying to lessen your business’s impact on the planet and tap into a market of environmentally conscious consumers, “Business Lessons from a Radical Industrialist” is the place to start. How to Get Rich Without Hurting the Planet

When it comes to winning over customers with content marketing, many entrepreneurs seem to think, “If we publish, they will come.” That would certainly explain the flood of bland, cookie-cutter blog posts pumped out across social media every day. To win over readers and make the most of your marketing dollars, your content needs to have a personality — a voice. Of course, personalizing content comes with a few pitfalls every marketer needs to know. newspaper. Do you think the author speaks exactly like that in real life? Probably not. Speech and writing are two different mediums with different stylistic needs, and trying to translate one to the other can prove disastrous. For example, many content writers include verbal cues like dramatic pauses … by including useless ellipses. In a conversation, strategic pauses may impress, but on the page, they pull readers out of the article. Contractions Aren’t Your Enemy On the other end of the spectrum, some people write like robots. They avoid contractions like “don’t,” “can’t,” and “aren’t,” resulting in stilted, plodding sentences that inflate word counts and alienate readers. Obviously, formal publications like research papers and legal briefs still maintain this archaic ban on mashing words together, but when it comes to marketing content, rules are flexible. Do not fear using these tools. You cannot go wrong with adding a splash of informality to your writing. Your readers are not going to mind. (Are you still with me?) Show, Don’t Tell This is a big one. So many businesses publish copy with big statements like “We love our customers!” or “Our passion is helping you!” These blanket sentiments come across as shallow. So, rather than tell customers you care about their needs, write content that shows them you understand their needs and want to help address them. We care deeply about your marketing campaigns and want to help them succeed! Don’t Write How You Speak Read a few sentences from your favorite book or

2 | (410) 832-0000 | jwyatt@harrisonlawgroup.com

Published by The Newsletter Pro • www.newsletterpro.com

Point by Point

Revolutionize Your Business With Bullet Journaling

When you’re an entrepreneur or a business leader, your to-do list can feel more like a novel than a manageable list. But what if you could order your thoughts, track your accomplishments, and maintain organization all on your own terms? It may sound too good to be true, but bullet journaling does just that. What Is It? Despite what the name may suggest, bullet journaling has little to do with writing out your feelings — unless you want to do that! Instead, it’s a log of all your to-do lists, reminders, and tracking systems in one convenient place. The goal is to complete tasks and update your journal each day. You can even download a companion app to digitally stay on top of your tracking.

The beauty of bullet journaling is customization. If you’re a visual person, create drawings or tape down pictures to represent your tasks. If you prefer precise outlines, use ruled pages to order each goal and its subtasks. A bullet journal can include every aspect of your business down to the smallest logistical details, or it can break down a single, complicated aspect, such as vendor tracking, into one journal. The look and function of your bullet journal is completely up to you and your process. How Do I Do It? Despite the versatility, every bullet journal shares a couple key components. First, you need a legend or key to identify what symbols mean throughout your journal. For example, a square next to a task may indicate it is a high priority, or a star may mean a task has been completed. Any group of symbols will work, but consistency keeps you organized. Second, you need a calendar in your bullet journal. That way, you can organize your goals by year, month, week, or day and keep track of smaller goals along the way. Throughout your journal, create separate sections for as many breakdowns as you want, but the key is to keep it all connected. No longer do you need to carry around a to-do list, a planner, and a calendar. Turn to bullet journaling to revolutionize the way you organize. For more tips, inspiration, and information on how bullet journaling can help you and your business, visit BulletJournal.com.

PUZZLE

HAVE A Laugh

jwyatt@harrisonlawgroup.com | www.HarrisonLawGroup.com | 3

Published by The Newsletter Pro • www.newsletterpro.com

o

Jeremy Wyatt jwyatt@harrisonlawgroup.com www.HarrisonLawGroup.com (410) 832-0000

PRST STD US POSTAGE PAID BOISE, ID PERMIT 411

40 West Chesapeake Avenue, Ste. 600 Towson, MD 21204

Inside This Edition

1.

Meditation in Fine Cooking

2.

Is Going Green Good Business?

Are You Making These Writing Mistakes?

3.

Bullet Journaling for Your Business

Have a Laugh

* 4.

Execution Is Greater Than Strategy

Level With Me: Reversing Perverse Incentives of the 'Pay-if-Paid' Clause

Execute Strategy and Kill Stagnancy 3 Tips for Every Business Leader “To me, ideas are worth nothing unless executed ... Execution is worth millions.” –Steve Jobs

2. Be Methodical While you shouldn’t wait for the perfect plan, you shouldn’t be flying in blind, either. You can be too energetic about execution. Make sure everyone involved in a plan knows their responsibilities.

Anyone can take this advice to heart, whether you’re a stay-at- home parent or the CEO of a Fortune 500 company. Ideas are easy, but no one becomes successful because they had a great idea. Success comes from putting that idea into action. Being able to execute a plan is a skill every business leader needs. Here are three steps to help you improve your execution. 1. Ditch Perfection Have you ever watched a behind-the-scenes featurette of your favorite movie? Some of the most successful films were all but unrecognizable in their early phases. In fact, a lot of early concepts are terrible. Look up the original designs for Woody in “Toy Story” to see for yourself. Fortunately, rather than wait for the perfect script, creators executed their visions and make changes as needed. Putting off action in favor of creating the perfect plan or strategy leads to stagnant business. Successful people know that plans take many shapes before they reach their final form. Don’t jump into something without a clear plan, but don’t be afraid to define your strategy as you go. There’s a reason audiences won’t be flocking to theaters to watch the latest galactic adventures of Luke Starkiller this December.

Confusion will torpedo any strategy faster than you can say, “Who was in charge of this?” The Harvard Business Review states, “Having the discipline to organize people, assemble resources, and then generate a plan that others can commit to will collectively improve execution.” 3. Evaluate, Evaluate, Evaluate We’re not saying you should micromanage your team, but you do need to be checking in on a regular basis to evaluate progress on your plan. Schedule monthly or quarterly meetings to go over the strategy. This is where you look for any changes that need to be made and refine the strategy. A smart strategy feels reassuring, but learning to execute a plan is the only way to make progress. The best business plan in the world is worthless if you never follow through.

4 | (410) 832-0000 | jwyatt@harrisonlawgroup.com

Published by The Newsletter Pro • www.newsletterpro.com

November 2019

Level With Me By JeremyWyatt

Reversing the Perverse Incentives of the ‘Pay-if-Paid’ Clause

Have you ever had a frustrating conversation with a general contractor (GC) similar to this one? You: When are you going to pay me on the pay app I submitted 45 days ago? GC: I’d love to, but I just haven’t been paid from the owner for that work, yet. You: Well, I need payment, because I need to cover my payroll for this project and the material supplier is beating my door down. GC: That’s too bad, but you signed a pay-if-paid clause, so I don’t owe you anything right now. Isn’t it just plain fair to be paid on time, every time, for the timely, correct, and valuable work you perform on construction projects? Well, yes, but the industry’s pay-if-paid clause gets in the way. “Risk Transfer Vehicle”: Another Term for Funding a Project with YOUR MONEY! The pay-if-paid clause —which is almost ubiquitous in modern construction subcontracts — states essentially that a GC has no obligation to pay subcontractors for project labor or materials unless and until the owner pays the GC for that work or materials. What this boils down to is risk transfer. On any construction project, there is a risk (large or small based on the project) that the owner won’t pay for all of the work. In a fair and open situation, the GC, being the party that has a contract with the owner, would take on the risk that the owner doesn’t pay, and as the party most able to pressure the owner, would work to protect everyone from the risk of owner nonpayment. That is, without a pay-if-paid clause, the GC is at

risk because it must still pay subcontractors for their work even if the owner doesn’t pay the GC. What the pay-if-paid clause does is transfer that risk of owner nonpayment down to the subcontractor. Now, if the owner doesn’t pay, the GC can avoid paying subcontractors for their work. But subcontractors still have to pay for labor and materials, so they now own the risk of loss. That is, under a pay-if-paid regime, if the owner doesn’t pay, the subcontractors are at risk of getting stuck with the bill for the labor and materials they supplied, even though they often have no direct communication with the owner. In practical (or maybe inherently impractical) terms, what this means is that subcontractors are the unsung funders of construction projects. You pay for the labor and materials in the normal course of business. Then you wait sometimes many months to get paid. And you don’t even get paid interest on what you are owed, the way a bank would. Perverse Incentives: How the Pay-if-Paid ClauseWreaks Havoc. One huge problem with the pay-if-paid clause is that is perverts the GC’s incentives on a construction project. What should happen is that – as the party liaising with the owner and “in charge” of getting everyone paid – the GC should be incentivized to fight every day to get fair payment out of the owner. Without a pay-if- paid clause, the GC is properly incentivized because it might have to pay subcontractors out of its own pockets if it doesn’t collect from the owner. Under a pay-if-paid clause, however, the GC isn’t really losing out if the owner slow-walks or refuses to pay for portions of a project. Instead, it’s the subcontractors that are losing out. The result is that

Continued on Back ...

jwyatt@harrisonlawgroup.com

www.HarrisonLawGroup.com

(410) 832-0000

... continued from Front

even well-meaning GC’s feel a loosening of the pressure to get the owner to make payment. Then the incentive structure changes. Under a pay-if-paid clause, the GC is no longer incentivized to fight tooth and nail for payment because it won’t have to pay the subcontractors out of its own pocket. Instead, simply closing out a project and getting what payment it can starts to look more appetizing, which incentivizes conduct like: • Settling claims out from under subcontractors for deep discounts that are passed on to subcontractors; • Discarding subcontractor change orders in order to close out a project; and • Accepting backcharges from the owner and passing the backcharges along to subcontractors under a “pay-if-paid” guise. In short, the pay-if-paid clause perverts the GC’s incentive structure to something akin to that of a mere fixed-rate consultant. As long as the consultant (or GC) gets its fee, it becomes less and less important whether the subcontractors actually recovers the fair and agreed- upon value of its work. Will You Choose to Stand up Against Pay-if-Paid in Your Business? So, how can you work with GC’s to reset the incentives to make

payment on construction projects? And if a GC refuses, how can you get paid anyways? The answer is, in part, knowing your rights and the leverage you still have. Ask yourself: • Have you ever felt helpless to obtain prompt payment when confronted with a pay-if-paid clause? • Have you ever wondered how to break the pay-if-paid cycle from the beginning, when negotiating a contract? • Have you ever wondered what tools you have to leverage payment even when the GC holds up the pay-if-paid shield? If you answered “yes” to any of those questions, email me at jwyatt@harrisonlawgroup.com for a copy of my new free Report: “How to Beat Pay-if-Paid Clauses Even When it’s ‘Too Late’”. In that Report, I lay out vital information, such as: • How to negotiate a “reasonable payment time” clause with precise examples of appro- priate language; • Knowing your rights in a true “pay-if-paid” situation, including your specific right to have the GC go to bat to get you paid; and • How to leverage payment (with specific ex- amples) from the GC and project owner when you are stuck in a pay-if-paid regime.

-Jeremy Wyatt

jwyatt@harrisonlawgroup.com

www.HarrisonLawGroup.com

(410) 832-0000

Page 1 Page 2 Page 3 Page 4 Page 5 Page 6

www.harrisonlawgroup.com

Made with FlippingBook Online newsletter