contract management

BAD BUSINESS CHOICE FOR LA!!!

some more observations regarding contract management services

• usually these contracts are multi year obligations --UNLESS YOU HAVE A CLAUSE THAT ALLOWS YOU TO CANCEL WITHOUT CAUSE AND NO PENALTY YOU SHOULD NOT SIGN A CONTRACT!-- no contractor will give you this for this size of a project-- but if you sign without this clause you will not be able to cancel the contract -- believe me no matter how poorly they do you will be committed to the term of the contract and the payment of fees -- they have many accounts and they have legal advice that shows them how to keep customers contracts valid and the payments enforceable no matter what-- you can't get out of these contracts
• the reason cancellation of a contract is next to impossible is that without strong specifications that cover all aspects of their responsibilities and performance and a measurement to determine if they are not performing you have no basis to terminate a contract without compensating them for their lost business--- and these companies know how to make you pay -- THEY ARE IN BUSINESS TO MAKE MONEY!!
  
• keep in mind that you are dealing with a sales executive and they will say anything to get you to sign (some even offer free accommodations in their various vacation homes that they maintain for customer use as well as box seats and tickets to sporting events and etc. and etc---- still a payoff -- keep that in mind) -- then when you have problems with the operations you have to deal with operations executives -- they're not the sales guy who sold you the job and can't say anything about the promises the sales people told you-- tough -- sounds a lot like dealing with car people? -- well it's the same situation and you'll get no where
• having a contractor run your business requires a lot of oversight -- this bod can't oversee the operations they have now so what makes the bod think they'll any more successful with this situation--- one thing they do have now is that you can remove the manager -- you can't remove the contractor without a big fight and large cash compensation to end your contract--
• this bod is an absent bod -- they are at la for the main holidays and events and know little to nothing about the la operations -- somehow i think they believe that this contract services is the gift from heaven and all their problems and responsibilities will be solved and handled by a contractor -- THEY ARE WRONG !

la community members must oppose this idea now --this bod is heading in the wrong direction if they pursue this course of action!! if you oppose this you should let them know and get other members who may not be aware about this idea to join in and contact them at info@lakeadventure.net or call at 570-686-2800

--- chipper >>> robert friend lachipper@gmail.com

management companies

the idea that la can be managed better by a management company is probably true -- in the
absense of the bod's ability to hire a qualified manager, their inability to trust a manger to run la, in their inability not to inject themselves into the management of la --this is an option


BUT
there are problems with this idea and in managing these type of contracts

• creeping costs -- remember the contractor's purpose is to make money -- so they will more professionally manage your business and attain savings and efficiencies but they will also have a strong desire to move any savings they accomplish into their side of the column-- resulting in them making more money and you (meaning the members) will not get any financial benefit from this arrangement-- they do this by offering you the minimum contract services with a great price (a deal you can't refuse) or known in the business as low bid--- but----
• then when you realize you want better service or more service they then renegotiate the costs for their service -- each negotiation results in costing you more money and you losing more of the savings they accomplished
• they provide minimum management services -- no more than they have to to keep the contract -- if you want more -- renegotiate for more money
• their selection of managers does not guarantee you a qualified manager -- you may very well end up with one with no more experience than any you had in the past or that you can choose yourself--- they don't send their best and most costly manager to a job that is low bid and minimum profit margins--- want better -- you must renegotiate for more costs
• if you don't have a set of lake adventure specifications covering every aspect of running la: from personnel management, facilities management, office management, property owner relationship management, infrastructure management, employee compensation and human resources management, payroll management, accounts receivables and payables, management of mandatory government documentation, payment schedules, fee schedules and compliance record keeping and etc. and etc.--- missed something in your original contract??? -- you can renegotiate for more costs

i've spent that last 21 years of my career at air products and chemicals handling $ 5,000,000.00 a year in contract services -- believe me i saw it all and i don't think the la board realizes how the service contractors work and don't realize that without strong oversight you will not realize any savings for the members and you will not be satisfied with their services-- remember they work to make money -- not manage your property -- if you pay enough (believe me that amount is never known) you may get something -- any better than you can do on your own??? you have to decide!!!!! OH NO! MR. BILL ! DECISIONS