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

comment

Anonymous has left a new comment on your post "comment + seasonal operations":


What long hours, how many times have we seen her at an activity. Isn't there an assistant rec director that also helps out. Our season is not in June it does not start to the very end of June it is really just July and August which is no more then 10 weeks even with the last week of June and first week of Sept. What exactly would the Rec Director do in the off season we don't have any trips or even activities on the weekends after Labor Day. Just keeping the clubhouse open doesn't count. This whole thing seems very fishy



Anonymous said...
I think the rec director has to start working in late winter/early spring to start coordinating schedules, etc so things for June are probably scheduled in May and researched in April. I also think when working on these things she most likely doesn't work a straight 9-5 Mon-Fri week, she may be working on Sat and Sun depending on what is in the works. If you look at the calendars there is something planned in almost every date. If you ever planned a birthday party for your children you would realize how much work goes into one little afternoon of fun and games so I can't fault the hours as she plans things right into Christmas. The salary, maybe a little high compare to the stress, responsibility and work load of the office workers but given I wouldn't want to do it maybe the salary is justified. Did I read correctly, Total Recreation only sold 4 trailers to LA? $250 each kickback to LA. If 12 wides passed the community stands to make a good amount of money from the dealer. I know a few came in from other dealers.

December 3, 2008 10:20 PM

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Anonymous has left a new comment on your post "staffing":

4 staff members and 1 rec director FULL TIME, M-F in the OFF-season????? I learn something new all the time on this blog! They have got to be kidding!!! Why do we need all this personnel when there is virtually nobody at Lake Adventure November through March? You can use billing and lockbox processing services for your bookkeeping and money handling. You basically need someone to handle the phones and assist the general manager (if you had one). And we don't have a full time year-round recreation program! The summer program is practically the same thing every year - you just need someone to change the dates, change a few trips, make reservations and oversee the rec staff during the summer. All this extra personnel should be seasonal! (Sorry, you'll probably hear from "the husband" again!)

anon -- it is not about individuals or individual's jobs - it's a bigger issue than any one job - it's about whether la should operate as a year round operation or a seasonal operation-- since less than 5% of the members that visit la come between labor day and mid may it is difficult to justify having ft employees out of season -- the finances of la are going to take A VERY BAD HIT VERY SHORTLY-- there is no reason to believe that la will avoid the financial meltdown occurring everywhere else, local and state governments, all kinds of companies and individuals not being able to get credit, soaring unemployment and mortgage foreclosures-- it is only beginning and la will soon see have drastically this will affect it's ability of operate--the bod is the stewards of the member finances and if they fail they could be liable for mismanagement of assoc finances-- failure to act to get control of discretionary spending is their responsibility and so far they aren't performing very effectively--- at no time is this about specific positions or individuals -- it's about managing la so that it survives the biggest financial crisis in the history of this assoc--- that means managing the payroll, operations, facilities and other costs to adjust to the realities of the time at hand-- the welfare of the assoc is paramount and all others issues should be on the table for consideration in reducing costs

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Anonymous has left a new comment on your post "LAUDRY RENOVATIONS":

Maybe if the machines did an adequate job more members would use the LA laundromat. I was up at LA most of July and August this year, and each week I took all my laundry to an outside facility so I wouldn't have to waste my time and money at LA. Believe me, it would be a lot more convenient and easier to do it at LA!


anon -- i agree -- i used it through the summer also and yes it took plenty of tokens to get anything dry -- but i still say that if too much is spent here on this laundry then that is questionable use of la assets -- dollars!!!!

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Anonymous has left a new comment on your post "I FIGURED IT OUT !!!":

This whole process of hiring a manager is no longer a JOKE or something that should be put off until this bod feels it's time. With the whole financial crisis in our country,and I'm quite sure our investments and savings will be effected, the time is NOW to hire someone or RESIGN IN WHOLE and put some people on the board that CAN make decisions for the benefit of ALL property owners or as much as people are against it bring in a management company. This NOT good.

anon-- i was not trying to make a joke with the joe six pack thing -- it is a very important situation for la community members -- a strong manager is necessary who can operate la without the bod injecting their micro management practices-- they should have a a contingency plan in place to counter any rise in default member fees-- you need to have a plan ready to know how you can manage la with reduced cash flow -- it may very well come to that situation --this financial problem in the country may only be starting -- it is highly unlikely that the distress in the financial markets is anywhere near over and the worst may be yet to come--

if the board flubs this manager selection and not having a plan in place for la to operate with less funding -- then they should resign or be removed by the members in a recall vote


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