Inclusion of Clause -- Missed Deadline -- How?

One of my friends just finished a bathroom remodel where the contractor not only finished ahead of schedule but undercost. My friend mentioned that he always puts two clauses in any contracts; a deadline clause with associated penalties and an ahead of schedule clause.
I remember when we were remodeling, this wasn't something any of the contractors would consider but we were also in a boom-economy. When I asked him how he gets his contractors to agree, he was cagey about it.
How do you draw up such a contract without blowing negotiations?
The Ranger
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Draft a fair contract. Usually people only put in "big stick" clauses and forget about the carrot. If you are up front with the contractor and tell him the clauses give you performance insurance and give him an opportunity, a confident contractor will appreciate it.
R
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wrote:

Draft a fair contract. Usually people only put in "big stick" clauses and forget about the carrot. If you are up front with the contractor and tell him the clauses give you performance insurance and give him an opportunity, a confident contractor will appreciate it.
R
There are also drawbacks to deadline and performance clauses...You get EXACTLY what's in the contract...If it's not included in the contract it ain't happening...No changing your mind on ANYTHING and no since your here.... or we've decided ect , ect....No moving furniture or we're having company this weekend so could you please clean up really good Thursday and not be here on Friday crap...They will be there including the weekend if need be and shit will be happening regardless of what's happening in your life (like getting sick or having to be gone for a while) and things like cleaning up good everyday won't be happening either...You had better make sure you think of EVERYTHING before YOU sign it including the quality of materials (think under budget) and he will not start UNTILL everything that has to be ordered is there ready to go....You will pay the performance money even if that hole in the bedroom wall is still there that the plumber had to cut out and repairing it and re-painting the wall wasn't in the contract or the light bar you decided to add is still sitting on the floor or if SWMBO has decided the paint color that she picked out is all wrong , ect...If you know what I mean...Been there , done that , got the t-shirt and the performance money....LOL..They will do the "extras" AFTER the money for the contract work is paid including the bonus at an EXTRA cost....Not a good idea unless it is pretty cut and dry and you know what you're doing... IMHO....Alot can and does go wrong...
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So you wouldnt clean up everyday just to meet a deadline, then your deadline was too short, you should have known better
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[snip]

Do you happen to have any sites with samples online that you would recommend?

Thanks for the warnings. I understand the downside of locking someone into a contract with a negative. I just witnessed the positive, though, and was hoping for some ideas to prompt the clauses into the contract without losing a good contractor.
As far as cleaning up after a workday, change-orders, etc., those are worked into the contract in the beginning. I work cheap and have moderate apprentice skills that have often proven my worth on the worksite.
Again, thanks for wearing your BTDT T-shirt. ;)
The Ranger -- "Life should NOT be a journey to the grave with the intention of arriving safely, in an attractive and well-preserved body. Rather one should skid in sideways, chocolate in one hand, martini in the other, body thoroughly used up, totally worn out while screaming 'WOO HOO! What a ride!'" -- Anonymous
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I would take deadlines all the time if my crew was reliable and I knew I could meet it, just be fair and realistic and give extra time, the contractor wants to finish to be paid. If someone wont accept a deadline, look elsewhere.
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wrote:

Deadlines are pointless on a very old house. It doesn't matter what's being done, there is always some unforeseen problem that comes up and blows the whole schedule. Even if it's a cheap fix it takes time. Now, with a 100 year-old house or newer that might not be an issue, but with an old house, all bets are off.
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wrote:

I would take deadlines all the time if my crew was reliable and I knew I could meet it, just be fair and realistic and give extra time, the contractor wants to finish to be paid. If someone wont accept a deadline, look elsewhere.
It's a two edged sword...Miss a deadline and I miss the bonus and have to pay...Meet the deadline and I get a bonus...I will do EVERTHING possible to meet that deadline...If it means working right up to quiting time and not cleaning up and working Sat. So be it...I WILL make it as I pointed out in my first post....I don't get to set the deadline...It is USUALLY a move in date that isnt negiotable....As a sub-contractor (drywall) , the genral says you got X amount of time to get it done so I can meet my deadline and says I'll give you X amount of money as a bonus to make it happen or lose the bonus and pay a penalty....Haven't lost one YET ...Although the homeowners weren't happy with me there working in the kitchen while having company for the weekend once to make a cabinet delivery date...No place to store them all plus a deadline looming for the general...LOL...Had to git'er done...Nice bonus too....
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A long, long time ago... Before there was text messaging, video games, and TV, people used to talk to each other. This was called "conversation". More on this at the following link... http://en.wikipedia.org/wiki/Conversation
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Bill wrote:

I don't believe people did that. Can I put that on my blog?
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George wrote:

yeah, I was gonna call BS, but wiki says (thank god for all-knowing wiki!):
A conversation is communication between multiple people
he's referring to twitter! I hadn't thought about it, but there's probably *tons* of contractors on twitter!
Bet there's one DBA "Home, tweet home, Inc."
--
PB
"I suspect you\'re an arrogant little pissant who grew up in the
Red Bull generation." - CJW
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Bill wrote:

Exactly, the best projects I was ever involved with typically involved nothing more than extensive discussion and a handshake. The worst seemed to be proportional to the size of the contract.
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[snip Communicate warning]

LOL. Good warning.
I don't know of anyone using the handshake and word of honor system anymore but I'm glad they're still out there, I think.
The contractor that we settled on to remodel our home was Old School but he's since retired which is why I was looking for a new contractor. It's also why I wanted to find out a way of broaching the carrot-and-stick.
The Ranger -- The 56k modem teaches us patience, humility, and the love of quiet contemplation, grasshopper. -- Kylie, AM Nov. '02
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I asked:

So Bill felt compelled to fire up his neurons and after long thought and much internal debate posted:

I know the subtly of what I asked went streaking on past you and your butterfly net but I asked about keeping the conversation going. The two contractors I brought it up to were totally against having anything like it in their contracts. One even closed up his binder and walked out when I asked about providing a bonus if he finished early -- apparently because he knew there was going to be, "and if you don't finish on time."
So, Bill... Let's try again. :)
The Ranger -- "It often amazes me at the complexity a simply-worded e-mail can convey to so many different people. And yet, so many people willingly complain that e-mail is an imperfect tool for communicating those same simple ideals." -- SG, 2/9/92, rpc
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