October 2019 Te Contractor’s Advantage
HarrisonLawGroup.com (410) 832-0000 jwyatt@harrisonlawgroup.com
The Night of Too Much Candy
Halloween is a fun time for our family, as it is for many families with kids. We have two kids who are just in that age range where they get excited to dress up and go trick-or-treating. Our house is on a two-block stretch of road perfect for this candified activity. There are a lot of families with young kids in the neighborhood, and it’s a good time. Many of the nearby households participate in the festivities. In fact, so many join in that it’s a fairly short night for us. We walk up one side of the street for two blocks and then back down the other side, and the kids come home with more candy than they know what to do with (but, with my wisdom, I know what to do with all of that delicious candy ... ). Either my wife or I will stay home to hand out candy. Once it starts to get dark, however, we just leave a bowl of candy out for the kids. Right after sunset, the younger ones are usually wrapping things up and the older kids begin their night out, and they are usually after more tricks than treats. This year, my 5-year-old son is excited to dress up as one of the Teenage Mutant Ninja Turtles. I admit I was a little surprised — not that my son wanted to be a Ninja Turtle but that the Teenage Mutant Ninja Turtles are still part of our zeitgeist after all these years. It’s another one of those anachronistic creations from the 1980s that is still popular, like the Ghostbusters, Transformers, or trickle-down economics. My daughter, however, wants to dress as a vampire but insists that it should be “not too scary.”
My son’s birthday also happens to be in October, and he often conflates his birthday with Halloween. For him, his birthday is another day to dress up in costume and eat more candy. Like any kids, mine love candy. I do what I can to limit their consumption, but talking my kids out of eating candy (or too much of it, at least) is a lot like litigating in the courtroom. We have a debate as to whether or not they have eaten enough of their healthy dinner to warrant enjoying a piece of candy. It is a nightly debate at our house, and it can feel like my kids are members of the Princeton debate club. Of course, I do as much as possible to monitor their candy intake, but Halloween does up the challenge. Any parent knows the struggle. I find it fascinating just how much kids love sugar. It seems like a craving embedded in the genes. Any opportunity to eat candy or a sugary snack, they will take it. Back before we had kids, we were talking to a friend whose toddler had never tasted sugar. She kept her son’s
diet as sugar free as she could manage, so (as she insisted) his palate for sugar never developed. Well, not at the time, anyway. Flash forward to a few years later, and the story was very different. This kid became one of the most sugar- addicted children I had ever seen! As Halloween draws closer, our family is looking forward to the holiday. It should be a lot of fun even if I do have to disappoint my kids when we limit how much candy they can eat in the days and weeks afterward, or when candy somehow — and mysteriously — disappears after they go to bed.
-Jeremy Wyatt
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PUT YOUR BEST CARD FORWARD
A Woman’s Guide to Corporate Success
Business Card Etiquette in 3 Different Countries
While Mireille Guiliano is best known for “French Women Don’t Get Fat,” her book on healthy eating and balanced living, authorship is actually her second career. Before she took up the pen, Guiliano was president and CEO of the French Champagne brand Veuve Clicquot. She developed Veuve Clicquot’s reputation in America almost single- handedly over a 20-plus year career, and now she has chronicled that success in her 2010 bestseller “Women, Work & the Art of Savoir Faire: Business Sense & Sensibility” — a guide to climbing the corporate ladder geared specifically toward women. Just as “French Women Don’t Get Fat” upended the typical diet book format, “Women, Work & the Art of Savoir Faire” leaves the usual business book style behind almost immediately. As Guiliano writes in her introduction, “This isn’t another business book that tells you how to ‘succeed’ or ‘get the corner office.’ Yes, of course, you’ll find advice on getting ahead and getting promoted … but more than that, you’ll find advice on being happy and living a good life, even while you are making the biggest contribution you can to the workplace. That’s why I dare to talk about style, and clothes, and food, and wine, and entertaining, and LIFE in a business book. We don’t work in a vacuum.” Guiliano is true to her word. Between the covers, readers will find advice on topics as far-ranging as developing the perfect handshake, choosing catering for a business dinner, dressing for success, and putting together an effective presentation. Guiliano has plenty of experience to back up her counsel and shares amusing anecdotes about the food and beverage industry, French culture, and her own journey along the way. There are no easy three-step solutions here, only long-term goals and strategies. What really makes “Women, Work & the Art of Savoir Faire” unique is that it caters specifically to women in pursuit of high-powered CEO or CFO jobs. Guiliano covers circumventing prejudice right alongside choosing a dress and tips on being the perfect lunch date. Still, both men and women will come away from this book with ideas about how to achieve success without sacrificing the pleasures French women hold so dear.
The business card is a nearly ubiquitous way to give your name, position, company, and contact information to potential clients and business partners all over the world. And while the exchange of business cards in the United States does not come with a lot of pomp and circumstance, that is not the case in many other countries. If you find yourself in one of the following places, remember these tips about exchanging business cards. Japan Known in Japan as meishi , the exchange of business cards comes with a lot of ceremony. Present your card with both hands, as this gesture is seen as respectful. Japanese culture places a lot of value on hierarchy and status, so make sure your title is listed prominently. When receiving a card, take a minute to look it over and comment on it. Immediately putting it away is disrespectful, and once you’re done looking at it, put it in a cardholder, folder, or binder. and contact info in English on one side and in the local language on the other is good practice. Gold lettering is considered auspicious, and if your business is relatively old, make sure the year it was founded is on your card. The practice of giving and receiving cards is very similar to that of Japan. Finish the exchange with a bow as a way to thank your acquaintance for meeting with you. India Business cards are exchanged even in nonbusiness interactions in India. Much like hierarchy and status are valued in Japan, academic achievements are valued in India, so list your university, degrees, and honors along with your other information. When exchanging cards, always give and receive them with your right hand. This is also common practice in many Middle Eastern countries. Exchanging business cards the wrong way probably won’t be detrimental to your business deal, but learning the proper etiquette in the country you’re visiting can go a long way in starting a professional relationship on the right foot. China In China, as in many other countries, having your credentials
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Reignite Your Passion As entrepreneurs scale their businesses, there is a lot to focus on: hiring the right staff, creating the most effective marketing strategies, and setting up efficient operations. With so much to do, it’s easy to lose sight of your initial vision for your company. If you’re stuck in a rut, know that you’re not alone. Plenty of the most successful entrepreneurs have endured the same struggles and, with a little ambition and a lot of creativity, came out on top. Take Henry Ford, for example. Henry Ford made the automobile accessible and appealing for the common citizen. This ignited interest in the market from consumers and manufacturers alike, which led to innovations like air conditioning and other appliances we can’t imagine living without today. There were some key
Lessons in Innovation From Henry Ford
factors that played into his success, and, if you apply them to your own journey, you could gain a new perspective and be inspired to create and innovate in your industry. Consumer-Focused Ford realized cars were unreliable and unaffordable to most and set out to change that. After developing the first moving assembly line, Ford lowered the price of cars and made them accessible for people outside the upper class for the first time. As long as you keep the consumer and their needs in mind, you’ll find ways to make their experience better and increase your success. Small Changes, Big Impact Unlike many companies today who sacrifice quality for quantity, Ford found ways to focus on both. He looked at how cars were actually made and found that, if he could build more cars within a certain time frame, he could pay less per car, per worker. Thus, the moving assembly line was born. When looking for ways to innovate in your industry, rethinking even the smallest, simplest details can make a huge difference for your business. You may not be able to reinvent the wheel, but who said you couldn’t reinvent the brake pads? Henry Ford may have changed the automobile industry forever, but you don't have to go to such lengths to innovate in your own. The next time you find yourself uninspired or stagnant, look to those who made your industry what it is today. You might just find the inspiration you’ve been searching for.
PUZZLE
HAVE A Laugh
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o
Jeremy Wyatt jwyatt@harrisonlawgroup.com HarrisonLawGroup.com (410) 832-0000
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Inside This Edition
1.
The Halloween Challenge
2.
Tips for Women Climbing the Business Ladder
International Business Card Etiquette
3.
How Henry Ford Innovated His Industry
Have a Laugh
* 4.
Play This Song to Your Sales Team
Level With Me: Winning the End-of-Project Back Charge Game
‘Got My Mind Set on You’ George Harrison’s Sales Advice In conversations about sales, one doesn’t usually think of George Harrison. But the truth is that the Beatles’ lead guitarist actually has some solid words of wisdom when it comes to converting warm leads. His last No. 1 hit single, “Got My Mind Set on You,” may sound like dated courtship advice, but it’s actually the perfect road map for turning interested parties into loyal customers. ‘I Got My Mind Set on You’ The theme of the song is painfully straightforward: A lovestruck singer has his mind set on dating someone. While your mileage may vary on single-minded romantic pursuits, this level of unwavering dedication is a must for warm leads. Unlike the mystery woman of Harrison’s song, these are people who have shown interest in your business. To build toward a sale, you have to return the favor. Send personalized emails or newsletters, or pick up the phone and call them.
and giveaways are your best friend. Targeting these special offers specifically at your warm list is a great way to cultivate lifetime customers.
‘It’s Gonna Take Precious Time’ The No. 1 mistake sales teams make is giving up on leads too early. If you dump a prospective customer because they hesitate on your first few attempts, you’re shutting the door on future profits. Depending on your business, leads that take months or even years to convert
can more than make up for the time and effort you’ve spent on them. Customers won over this way are far more likely to stick with you. ‘To Do It Right’ The final conceit of George’s song is that there may be other ways to win a person over temporarily, but this is the right way. By remaining dedicated and spending the time and money to build your relationship, you can win over lifetime customers — no singing required.
‘It’s Gonna Take Money’ As the first verse of the song suggests, building this promising relationship isn’t going to be cheap. If someone hasn’t already taken the leap to become a customer, they need some incentive to get serious. This is where free trials
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October 2019
Level With Me By JeremyWyatt
Winning the End-of-Project Backcharge Game
I represent a lot of subcontractors working on commercial construction projects, and more and more I have been seeing an end-of-project game where general contractors (especially the larger ones) try to solve project problems by pushing costs down onto subcontractors that have nothing to do with the problem. In my experience, these problems typically arise from one of three areas. First, the general contractor may have issues with the project’s owner (such as delays, owner-general contractor backcharges, or liquidated damages). All too often, a general contractor might take whatever costs come from its dispute with the owner and split them amongst all project subcontractors, regardless of whether a particular subcontractor had anything to do with the problem. That is patently unjust. Second, the general contractor may have serious issues with another project subcontractor and, even though that single subcontractor is at fault, the general contractor shares the costs of that subcontractor’s failure with other subcontractors on the project. A classic example is where one subcontractor is late in finishing their project work and the general contractor forces all succeeding subcontractors to greatly accelerate their own project work without any additional compensation. Third, (and I will admit that this is grounded on my own gut feeling, though I feel in my bones that it is true — I am just waiting
for the case where I can prove it!) some general contractors take a look at the end of a project and, if their profit percentage isn’t what they expected, they make up that profit by pushing spurious backcharges down on subcontract, essentially lowering their costs and raising profits by simply refusing to pay subcontractors. Mechanically, these problems hit subcontractors in a couple of ways. On the one hand, a general contractor might simply issue a backcharge: for example, making a subcontractor responsible for liquidated damages assessed by the owner. This is the more formal method and easier to spot. On the other hand, the general contractor may hide the ball a bit and, instead of issuing a backcharge, order a subcontractor to perform additional end-of-project work (at additional cost to that subcontractor) in order to resolve an unresolved project problem. A recent example of this in my own practice was where a drywall subcontractor finished installation of drywall on one floor of a project (sealing in almost all of the wiring on that floor). Then an electrical inspector informed the general contractor that the entire floor’s wiring needed to be redone. The general contractor obviously (and rightly) demanded that the electrical subcontractor fix its error, but also (unjustly) required the drywall subcontractor to repair or replace every area that the electrical subcontractor damaged in its own repairs without paying the drywall subcontractor a single dime for that additional, unplanned work.
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... continued from Front
Not all general contractors engage in this unacceptable behavior, and those who do don’t necessarily do it all of the time. But it DOES happen, and it IS a real problem. So how do you avoid losing project profits to unfair and spurious end-of-project backcharges or cost-“sharing”? It’s a combination of preparation, tenacity, and a willingness to push for what you are rightfully due. First, the bad news — if you want to get full payment in a scenario like this, you need to be prepared to wait for payment. Once you reach the end of a project and a general contractor plays this game, it can take months (or the length of a lawsuit) to get paid. But persist! Second, be vigilant about submitting claims for payment on all additional work you performed at the end of the project (or any time, really), and carving out those claims from all lien releases. This includes claims for impacts (unexpected effects on the efficiency of your project work) and delays (failure of the general
contractor to support your timely prosecution of project work). That way, you will have protected your rights to compensation for what comes next. For more information on this, ask for a copy of my book (details at the end of this article). Third, demand what you are due. If a backcharge comes in, refuse to sign it until the general contractor has provided clear reasoning (with documentary support) regarding why that backcharge is your responsibility. And if negotiations with the general contractor do not result in payment, be certain to secure your payment bond and mechanics’ lien rights. Successful payment claims require leverage over the general contractor, and the pressure brought by bond and lien claims is some of the best leverage out there. At the end of the day, commercial construction projects can be a rough-and-tumble world, and the prepared and determined subcontractor is the one, in my experience, who gets paid in the end.
If you want to learn more skills and tips about avoiding construction claim pitfalls, you can receive a free copy of my book “The Subcontractor’s Roadmap to Getting Paid for Extra Work” by emailing me at jwyatt@harrisonlawgroup.com.
-Jeremy Wyatt
jwyatt@harrisonlawgroup.com
www.HarrisonLawGroup.com
(410) 832-0000
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