tag:blogger.com,1999:blog-8078379512095504946.post3117874613012899692..comments2024-03-26T06:17:49.527-07:00Comments on Had Enough Therapy?: Over-regulatedStuart Schneidermanhttp://www.blogger.com/profile/12784043736879991769noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8078379512095504946.post-8879084889652440752011-02-21T09:18:14.128-08:002011-02-21T09:18:14.128-08:00as a random anecdote,I can offer that construction...as a random anecdote,I can offer that construction contracts for small scale projects that are excessively detailed and laden with<br />restrictions and conditions,<br />almost always result in higher- priced bids returned.<br /><br />in contrast,clear communication,<br />with the minimum of boilerplate language, and the award of the contract to a known,skilled business results in a faster project delivery with fewer "change orders"/(cost extras),which are often the result of disagreements over small ommissions in the construction documents.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8078379512095504946.post-84686842486611502102011-02-21T05:01:23.168-08:002011-02-21T05:01:23.168-08:00Thanks, David. Of course, those are crucial points...Thanks, David. Of course, those are crucial points.<br /><br />The liability system makes it nearly impossible for a company to rely on anything less than complete contracts. It feels like the system has been gamed, though I do wonder how tort reform will influence this factor.<br /><br />Second, it is good to underscore the fact that doing business on a handshake can only take place when the participants know each other, and know each other very well. <br /><br />The Japanese are renowned for their disdain for contracts, but they would rather not do business until they get to know someone, and have enough time to gauge his character and to assure themselves that he will be sticking around.<br /><br />In a corporate culture where people are constantly on the move, it is much more difficult to do business on a handshake.Stuart Schneidermanhttps://www.blogger.com/profile/12784043736879991769noreply@blogger.comtag:blogger.com,1999:blog-8078379512095504946.post-28959432230806812692011-02-20T15:10:55.730-08:002011-02-20T15:10:55.730-08:00A couple of things that drive businesspeople to wa...A couple of things that drive businesspeople to want contracts as comprehensive as possible:<br /><br />--liability concerns. There may be only 1 chance in 1000 that a liability-causing event may occur, but in the current litigious climate, the cost could be sufficient to destroy a substantial company.<br /><br />--personnel turnover, especially at the executive level. You may have a good understanding with an individual negotiating partner...a year later, you may be dealing with a completely different individual.David Fosterhttps://www.blogger.com/profile/15464681514800720063noreply@blogger.com