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Sunday, January 08, 2017
UMES REFUSES TO PAY CONTRACTORS FOR COMPLETED WORK
Scroll down to see second letter
33 comments:
Anonymous
said...
Being a minority has nothing to do with him not getting paid so I don't know why that was mentioned. It happens to a friend of mine all the time that is a contractor that owns a small business and he is not a minority. And well-established companies are the ones that he has to continually nag for his money. But yet, they want the work done RIGHT AWAY. Ok, done venting.
I hope this company gets the money that they are owed. Shame on UMES. Kudos to them for getting the word out.
My husband is a small business contractor. Once we had to write a letter to the CEO of a company of a national chain before we got money that was owed to him. Took almost a year. He's not a minority either, so I am not sure why this keeps being mentioned. It happens to a LOT of contractors....this is really nothing new, other than the fact that the contractor that wrote the letter is letting everyone know about it. We're all in the same boat, unfortunately.
Dragging feet on payment is not uncommon for small businesses because it's money in the bank collecting interest. Many small businesses cannot afford legal council to use the courts. Some can't even afford a secretary.
Regarding the comments wondering why the minority part of the equation is mentioned: I believe that was answered by the preface stating that UMES is a historically black college. Although I may not agree 100%, I do get why it was mentioned.
Banks have their merit.Every time I predict a falling stock market I sell off and put the money in a savings account.True 10:53,that money does not collect appreciable interest,but it's intact for future investments.Other than that,10:49 must not have money in a bank.
Joe, I agree with 10:49. I don't know about collecting interest, but businesses hang on to their money as long as they can. We are all trying to make a living. I work a full time job, and then help my husband with paperwork, bills, etc at night because we can't afford a secretary either. And the world thinks if someone owns their own business, they are rolling in money. As our tax preparer told us, small business owners have to make an insane amount of money just to put food on the table. The licenses, fees, insurances, taxes, workman's comp, etc just about drain us dry.
I sure hope the writer of the letter gets paid soon. We've been there too, many times.
I agree with above. UMES is not what anyone can call a professionally run institution of higher learning. I would suggest instead of forwarding on to Rep Harris who is federal, it would be better to forward on to the state delegate/delegates and senator who represent the area. Also forward to those where the business is located if different.
UMES absolutely is the worst place to work. I worked there and got treated like crap then they terminated my contract with only 4 days notice after working there two years. and tried to mess up my last pay check. never, ever work there if you can help it. it was the very bad experience. And the way they talk to people is not professional.
I agree with 11:07am --- I working for a business that SERVPRO owes thousands of dollars for months. They don't return calls. Sad for a large company like that.
It is not just institutions that do not pay. It is owners in general and getting your final payment in full is unheard of. Contractors cannot pay their bill do to the unethical practice of owners not paying their bills. I know Hebrew and he is an honest man who does good work and deserves to be paid. One last comment I used to do a lot of work at UMES for decades starting in the mid 80's and they were great to deal with. I would not work for them now on a bet. I wish you luck on getting your money Hebrew.
Back in the 1970's myself and a partner sold new equipment to commercial businesses and did electrical wiring and refrigeration for new and existing construction. Almost everything carried a one year warrantee in Maryland which was 10% of the total contract. The money stayed in escrow until that year was over and the buyer happy with the outcome. Slow pay or no payers were many times those who had lots of money but figured they'd either drag their feet or force us into court. You wouldn't believe the repairs that came about for those slow or no pays. They want it fixed now/today. We would love to fix your problems Mr.No Pay, just have that slo-pay check ready when we get there or no service will you get. Air conditioners and ice machines needed Freon which many times had outside leaks? or electrical breakers kept needing replaced, ice machines, refrigeration units and air conditioners needed to work for businesses in restaurants to continue. Service forced payment and repairs were continual until the bill got paid in full.
Joe,this could start a big issue with subs and general contractors going at each other because there are a lot of issues that need to be addressed on how subs get paid and use of illegal aliens at sub standard wages to get city,county and state jobs with NO oversight.
I know Dave and is a self made man who started with very little and has done very well. He does not play around either. He will come out on top of this I am sure.
To those who read this article it happens all the time it's not new. Even here on the shore we have dirt bag companies that are greedy spend more than they make and Rob Peter to pay Paul.If you had know idea that Nason was slow or no pay you must have not done your homework before signing the contract. them and a few others are well known for just that.
I can tell you - firsthand - as a former general manager for several multi-million dollar governmental projects - my advise to anyone considering to bid on any governmental construction project - STAY-A-WAY!!!(emphasis added). Don't bite.
The company I was affiliated with for the construction jobs I was assigned to - had an average monthly contractor payment disbursement billing of $1,000,000. My co-manager and job superintendent often said to me behind closed doors that they would never ever bid or participate on a government construction job because of the onerous regulatory environment. Basically - the contract specifications are so 'weighed' to the advantage of the owner, that any deviation - whether intentional or not - is grounds for non-payment.
That - coupled with liquidated damage penalties (project delays) in amounts anywhere from $3,000 to 5,000 per day - that's right you heard me right - can literally financially wipe out even the best credit worthy contractor.
I can tell you story after story of subs who could hardly afford to buy gas to get to the job - and in the end the bonding company had to be dragged-in - and ultimately many of the subs had to file bankruptcy. Litigation - nightmare to say the least.
33 comments:
Being a minority has nothing to do with him not getting paid so I don't know why that was mentioned. It happens to a friend of mine all the time that is a contractor that owns a small business and he is not a minority. And well-established companies are the ones that he has to continually nag for his money. But yet, they want the work done RIGHT AWAY. Ok, done venting.
I hope this company gets the money that they are owed. Shame on UMES. Kudos to them for getting the word out.
We all want to be paid for work done.
Is there a reason for the delay? Let's hear it.
By the way, it's "undue", not "undo". Get your secretary a dictionary.
Sounds like UMES is pulling a Trump. Maybe they will file chapter 11.
My husband is a small business contractor. Once we had to write a letter to the CEO of a company of a national chain before we got money that was owed to him. Took almost a year. He's not a minority either, so I am not sure why this keeps being mentioned. It happens to a LOT of contractors....this is really nothing new, other than the fact that the contractor that wrote the letter is letting everyone know about it. We're all in the same boat, unfortunately.
Dragging feet on payment is not uncommon for small businesses because it's money in the bank collecting interest. Many small businesses cannot afford legal council to use the courts. Some can't even afford a secretary.
UMES is not the best run college and this behavior does not surprise me. I am sorry to see this happening. I hope that a resolution can be reached.
10:49, LMAO, yeah, right, collecting interest in the Bank, NOT!
I also am a contractor on the same project who has NOT been paid. This situation will break a lot of small contractors. This is not right!
9 59 great call you must have nothing better to do then correcting peoples mistakes sounds like you need a job
Regarding the comments wondering why the minority part of the equation is mentioned: I believe that was answered by the preface stating that UMES is a historically black college. Although I may not agree 100%, I do get why it was mentioned.
Banks have their merit.Every time I predict a falling stock market I sell off and put the money in a savings account.True 10:53,that money does not collect appreciable interest,but it's intact for future investments.Other than that,10:49 must not have money in a bank.
Sounds like SERVPRO not paying any of their bills. Just ask around town!!!
Joe, I agree with 10:49. I don't know about collecting interest, but businesses hang on to their money as long as they can. We are all trying to make a living. I work a full time job, and then help my husband with paperwork, bills, etc at night because we can't afford a secretary either. And the world thinks if someone owns their own business, they are rolling in money. As our tax preparer told us, small business owners have to make an insane amount of money just to put food on the table. The licenses, fees, insurances, taxes, workman's comp, etc just about drain us dry.
I sure hope the writer of the letter gets paid soon. We've been there too, many times.
I agree with above. UMES is not what anyone can call a professionally run institution of higher learning. I would suggest instead of forwarding on to Rep Harris who is federal, it would be better to forward on to the state delegate/delegates and senator who represent the area. Also forward to those where the business is located if different.
Ask the AA students to approve a temp hike increase.
UMES absolutely is the worst place to work. I worked there and got treated like crap then they terminated my contract with only 4 days notice after working there two years. and tried to mess up my last pay check. never, ever work there if you can help it. it was the very bad experience. And the way they talk to people is not professional.
UMES, lol...there's your problem.
I agree with 11:07am --- I working for a business that SERVPRO owes thousands of dollars for months. They don't return calls. Sad for a large company like that.
Typical black behavior, always looking for a freebie.
It is not just institutions that do not pay. It is owners in general and getting your final payment in full is unheard of. Contractors cannot pay their bill do to the unethical practice of owners not paying their bills. I know Hebrew and he is an honest man who does good work and deserves to be paid. One last comment I used to do a lot of work at UMES for decades starting in the mid 80's and they were great to deal with. I would not work for them now on a bet. I wish you luck on getting your money Hebrew.
University of Maryland Elementary School??
UMES 13 % graduation rate...LOL
Back in the 1970's myself and a partner sold new equipment to commercial businesses and did electrical wiring and refrigeration for new and existing construction. Almost everything carried a one year warrantee in Maryland which was 10% of the total contract. The money stayed in escrow until that year was over and the buyer happy with the outcome. Slow pay or no payers were many times those who had lots of money but figured they'd either drag their feet or force us into court. You wouldn't believe the repairs that came about for those slow or no pays. They want it fixed now/today. We would love to fix your problems Mr.No Pay, just have that slo-pay check ready when we get there or no service will you get. Air conditioners and ice machines needed Freon which many times had outside leaks? or electrical breakers kept needing replaced, ice machines, refrigeration units and air conditioners needed to work for businesses in restaurants to continue. Service forced payment and repairs were continual until the bill got paid in full.
What interest, 10:49?
http://casesearch.courts.state.md.us/casesearch/inquiryDetail.jis?caseId=2H00083442&loc=8&detailLoc=ODYCRIM
http://casesearch.courts.state.md.us/casesearch/inquiryDetail.jis?caseId=0203SP007962015&loc=8&detailLoc=ODYCIVIL
etc
Joe,this could start a big issue with subs and general contractors going at each other because there are a lot of issues that need to be addressed on how subs get paid and use of illegal aliens at sub standard wages to get city,county and state jobs with NO oversight.
I know Dave and is a self made man who started with very little and has done very well. He does not play around either. He will come out on top of this I am sure.
To those who read this article it happens all the time it's not new. Even here on the shore we have dirt bag companies that are greedy spend more than they make and Rob Peter to pay Paul.If you had know idea that Nason was slow or no pay you must have not done your homework before signing the contract. them and a few others are well known for just that.
How can a so called college continue to recieve funds with such Low rates?????
A lot of waste at UMES. Has been for a long time.
Seems like the subs should get some legal advice, enforceable contracts and escrow requirements.
8:57,obviously your not a sub contractor,we have very very few rights and you sign the general contractors contract he does not sign yours.
I can tell you - firsthand - as a former general manager for several multi-million dollar governmental projects - my advise to anyone considering to bid on any governmental construction project - STAY-A-WAY!!!(emphasis added). Don't bite.
The company I was affiliated with for the construction jobs I was assigned to - had an average monthly contractor payment disbursement billing of $1,000,000. My co-manager and job superintendent often said to me behind closed doors that they would never ever bid or participate on a government construction job because of the onerous regulatory environment. Basically - the contract specifications are so 'weighed' to the advantage of the owner, that any deviation - whether intentional or not - is grounds for non-payment.
That - coupled with liquidated damage penalties (project delays) in amounts anywhere from $3,000 to 5,000 per day - that's right you heard me right - can literally financially wipe out even the best credit worthy contractor.
I can tell you story after story of subs who could hardly afford to buy gas to get to the job - and in the end the bonding company had to be dragged-in - and ultimately many of the subs had to file bankruptcy. Litigation - nightmare to say the least.
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