Trillion Market Capitalization is not a Dream

Chapter 110 Payment Terms for Emergency Steel Structures

Zhang Yunqing arranged for material buyer Wang Mingdao: "Please introduce the project department's situation about the steel structure to Boss Fang."

Wang Ming replied: "Okay. Mr. Zhang."

Then he said to Fang Xian, the boss of the steel structure: "Boss Fang, regarding this steel structure, I have already sent you the drawings before you came."

Fang Xian replied: "Yes, the drawings have been received, and the engineering quantities are being calculated, but they are not finished yet."

Wang Ming asked: "It doesn't matter if you haven't finished the calculation. Have you gone through the drawings yourself?"

"I've taken a quick look at it and I understand the main construction content."

"Is it possible to start construction in a week?"

"Mr. Wang, can you sign the contract before starting work?"

"Boss Fang, you are our old supplier of Western Construction. You must not sign the contract so quickly, right?"

"Mr. Wang, I understand that the formal contract is not so fast, but the initial contract and the unit price of the contract can be signed by the project department and us. Otherwise, if there is an error in the middle arrangement, I cannot bear the loss."

"Boss Zhang and Zhou, I can't be in charge of the initialing of the contract and the unit price of the contract that Boss Fang mentioned. We need the two leaders to communicate with the company."

"Wang Ming, don't be anxious. Let's see if Boss Fang has any other more specific requirements regarding our request for him to start construction in a week."

"Mr. Wang, Mr. Zhang, and Mr. Zhou, if they are so eager to enter the construction site, they must sign the contract first, even if they just initial it and wait for the formal procedures. I have suffered this loss in previous projects. The project department He was also in a hurry, so he found several teams to negotiate at the same time, and each one asked them to come in and do the work first. As a result, I arrived at the site half a day later than others, and others came in first. My materials, machines, and labor were all ready. and have already arrived at the construction site. The leader said, you are an old supplier, please overcome it. That time caused me direct economic losses of hundreds of thousands, and I still had nowhere to redress my grievances. I asked to sign a contract first, yes I hope this won’t happen again.”

"Boss Fang, we understand the story you told. I will definitely find a way to prevent similar accidents from happening again in our project department. Do you have any other requirements?"

"Mr. Zhang, thank you for your leadership's understanding. There are no other requirements, it's still related to the contract."

"Please tell me specifically what the requirements related to the contract are. Wang Ming, the material procurement manager, and Mr. Zhou, the project manager, are all here. Let's discuss it."

"Okay, Mr. Zhang. As for the content of the contract, I roughly looked at the construction drawings and estimated the price. Generally speaking, my contract can reach two million. The construction period is so urgent, and all the steel Structural materials are required to be paid in cash. If payment is deferred, the price will be 30-40% higher, which is simply unacceptable in terms of cost."

"So, what I am thinking is that I hope to be able to give a 50% advance payment on this contract, and the progress payment will be based on 80% of the monthly completed output value."

"Wang Ming, please tell me whether the 50% advance payment request proposed by Boss Fang is feasible, so that Mr. Zhou and I can discuss whether we can agree to his request."

"boss Zhang,

Mr. Zhou, I haven’t worked in the company for a long time, but I know clearly that the company does not support advance payment. "

"Wang Ming, we don't support advance payment. Is there any other way to pay the progress payment a little earlier?"

"At most, it has happened that after the materials arrive at the site, the full price of the materials will be paid. This can solve the problem of suppliers not advancing funds for the main steel structure materials."

"King Ming, go on and state all the payment terms."

"Okay, Mr. Zhang. The payment terms for this special point are: after the materials arrive at the site, the material payment will be paid in full. This is not easy to calculate and it is easy to argue. We can agree on it to be that after the materials arrive at the site, the contract amount will be paid. 40%, and 70% of the completed output value from the 1st of the previous month to the end of the month will be paid at the beginning of the next month. When the cumulative payment amount of the progress output value for this month is greater than 40% of the contract amount that has been paid, the actual progress payment will be started, and the completion will be accepted. 85% of the completed output value (including material payment) will be paid later, 90% of the settlement amount will be paid after the settlement review is completed, and 10% of the approved settlement amount will be paid after deducting the deducted fees after the one-year warranty period."

"Boss Fang, do you agree with the payment terms of this contract?"

"Mr. Zhang, even if the advance payment cannot be made, this payment term is still feasible. I agree."

"Wang Ming, then you should draft a special report for the company, assign the steel structure construction of this project to Boss Fang's team, and draft his contract at the same time. But one thing must be written clearly, that is, his The contract price is drawn up by Boss Fang and submitted to the project department as a document for the project department to declare to the company. This price document will be reviewed by the company in accordance with the normal review process and will be used as a price attachment to the contract."

"Okay, Mr. Zhang, I will draft these two documents now."

"Okay, you go and do your work first."

Zhou Wencheng saw that the steel structure team had reached this level, so he said to the boss of the steel structure: "Boss Fang, in this case, you will start construction in a week. You can rest assured that this project We haven’t approached a second team to negotiate, so there won’t be any other teams entering the game before you.”

Fang Xian replied affirmatively: "Okay, Mr. Zhou, don't worry, I will arrange to start construction in a week. The price documents will be reported tomorrow at the latest."

Zhou Wencheng agreed: "Okay. I'll call Wan Cong, the engineer who will be in charge of you on site from now on, and you can get to know each other before entering into formal work arrangements."

Zhou Wencheng took out his phone and called Wan Cong, the garden construction engineer: "Is it in the project department?"

"In the office of the project department."

"Well, okay, come to Mr. Zhang's office of the Ministry of Commerce immediately."

A few minutes later, the garden construction engineer arrived at Zhang Yunqing's office.

Zhou Wencheng pointed to Boss Fang of the steel structure and introduced: "This is Fang Xian, the boss of the steel structure who just arrived at the project department today."

Then he pointed at the garden construction engineer Wan Cong and introduced to Fang Xian: "This is the garden construction engineer from our project department. From now on, your on-site contact and work arrangements will be handled by Wan Cong and the person you designate."

Fang Xian stood up, stretched out his right hand and held it tightly with the garden construction engineer, and said, "Mr. Wan, I will come to your site to make a living from now on. Please take care of me."

Wan Cong responded politely: "Boss Fang, I'm serious. This is my territory. From now on, the steel structure area will be your territory. We will work together to overcome difficulties and complete the tasks assigned by the company."

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