- PRICE SHOPPING WILL BE AN EMPLOYMENT TERMINATION EVENT
Price shopping is when, during a bid close, one subcontractor’s lower price is quietly given to another subcontractor, in order to make that sub low. It is one of the most unethical practices in the industry and it will not be tolerated at EllisDon. If an EllisDon employee is shown to have engaged in this practice once, they will receive a formal warning. If they are caught twice, they will be terminated, regardless of tenure or seniority. If any subcontractor has concrete evidence or proof of bid shopping, they are welcome to contact the CEO directly.
2. THE LOW QUALIFIED SUB AT CLOSING GETS THE JOB
We need to make sure that we get all the info on every price at closing, so we know which price to carry. If you are the low qualified sub at closing, you get the award on those terms, period, full stop. (Let’s acknowledge that CM subcontractor bids to clients often have more complexity and are often beyond our control, but our ‘recommendations to award’ will follow this standard.)
3. NO BACK CHARGES
EllisDon defines back charges as a charge that comes without both clear advance notice and appropriate justification/documentation. The idea that we can send out back charges at the end of projects, without an adequate prior warning (enabling the sub to fix the problem) and appropriate justification, has no future at EllisDon. If you, as a subcontractor, can show an inappropriate back charge, according to the above definition, it gets cancelled. Regardless of the amount.
4. TIMELY PAYMENT
If EllisDon does not include a sub’s legitimate billing on our invoice, or if we don’t bill the owner when we should (and as a result the sub doesn’t get paid on time), we will pay the subcontractor interest at the prime rate on the payment delay.
5. RETURNED PHONE CALLS
If you indicate that your issue is important, we will return your phone call within 24 hours. If an EllisDon person is not responding promptly, you are encouraged to call me to complain. EllisDon must be committed to this standard. If our people are on holiday, they will leave instructions as to whom to talk to in their absence.