I have a Title Co. that has requested prices on quite a few boundary projects in the past 2 months. I guess I am blowing the price out of the water as no work has come from it but I dont really care beacause the proposal form that they provide includes the following statement:
6. $100.00 a day fine for unauthorized delays
Depending on the size and scope of the proposed survey I have been raising my prices $500 to $1500 above normal to cover any delays/boundary issues. It is my policy that surveys are complete and submitted when they are right which may or may not be on a clients schedule.
My question is has anyone ever paid a "fine" for being late with a survey?
I would never sign a contract with that provision.
Instead, they would probably hear laughter from my end of the phone as I am hanging up.
I have never been offered a bonus of $100 per day for turn around ahead of schedule and/or waiting for the property to close and/or waiting 3 days for monies to be available in the bank to pay my fee.
0.02
> I have a Title Co. that has requested prices on quite a few boundary projects in the past 2 months. I guess I am blowing the price out of the water as no work has come from it but I dont really care beacause the proposal form that they provide includes the following statement:
>
> 6. $100.00 a day fine for unauthorized delays
>
> Depending on the size and scope of the proposed survey I have been raising my prices $500 to $1500 above normal to cover any delays/boundary issues. It is my policy that surveys are complete and submitted when they are right which may or may not be on a clients schedule.
>
> My question is has anyone ever paid a "fine" for being late with a survey?
The only way a contract such as this could work for the client and the surveyor is if everything was spelled out in great details before any work begins. You have to specify who is responsible for each and every step and what happens to the overall schedule if things are not done on schedule.
Were I asked to sign a deal such as this, I would insist on:
1. A bonus for every day ahead of schedule
2. A penalty to be paid to me (or additional days added to my delivery date) for every day the client (or other associated parties) has not fulfilled some related work
3. Deliverables that do not require the client to agree that I had complied with a step. (Meaning, if I put the plans in the box at your office I met the requirement. Whether or not you decided to get the plans out of that box is your issue, not mine.)
If the prospective client is not willing to reward for early work then you have an unreasonable party on the other side. The best way to handle those is to let them be someone else's problem.
Larry P
Haven't seen it much on boundary work, but being hit with liquidated damages on construction projects is always a possiblility...
Yes I have signed that contract. The whole contract was so one sided that I took a chance, tripled the fee and went for it. The contract also stated that the Title Co. was only an agent for the property owner who was responsible for paying for the survey and that I was prohibited from contacting the property owner directly. There was no schedule for when I would ever get paid. I figured no Virgin Islands judge would ever side against me and with a Texas company with such an illegal contract. When I didn't get paid, I liened the property and got paid immediately. It worked out fine, but be careful.
A couple of days ago, I had a client ask me to reduce my fee by 1% per day that I was late with a boundary survey. This was not mentioned in the contract and I didn't agree to it. After thinking about it I decided that it was reasonable for him to be compensated in some way, so I offered to perform some free line staking after the boundary was finished and he agreed. I think it will work out well because I can still collect my entire fee and keep my client happy with a little extra work.