Masonry Magazine June 1969 Page. 8
Make Money Move
(Continued from page 7)
a very constructive and helpful role and interest in our 3-M program."
He then turned to advise what individual contractors and suppliers can do to improve these conditions and make money move:
"First, we ourselves, can make it a habit to pay our obligations on time. Second, we can continue in turning out a quality product and clean up any untidy business practices in our shops. Third, through support of our 3-M Committee, we can establish our desire to effect reforms in administrative policies and procedures on the part of the myriad of governmental bodies.
"Fourth, we can work toward cleaning up ambiguous contract language and individually pay more attention to contract requirements. Fifth, through support of the 3-M Committee, we can work for legislative relief in the matter of retained percentages and also payment policies and procedures. Sixth, through the same united committee we can strive to eliminate the double jeopardy inherent in the retainer-surety bond combination, perhaps by establishing more stringent bonding requirements in lieu of retained percentages."
Mr. Groh assured the public officials that contractors and suppliers recognize the need for public and private safeguards and are not seeking their complete elimination, but rather a little more breathing room in a quest for just profits in a high-risk business.
To accent the significance of the problems, the booklet reports that difficulties in collecting accounts receivable caused 14.5% of the 2,510 construction industry failures in 1966; and that industry turnover is quite high, ranging from 10.9 to 13.6% of all companies dropping out every year, indicating the lack of stability.
Retainers, payment delays, performance bonds and the other conditions of difficulty the committee says, force the contractor to include a carrying cost in his bids, thus forcing up prices and costs for everyone. In addition they cause some contractors to bid on fewer jobs, a rising trend, which results in more awards to marginal contractors.
Recommendations of the committee appearing in the booklet offer changes in contract language as the most direct approach toward acting upon problems in the Private Sector; and for the Public Sector it advises certain changes in the Wisconsin statutes and the Milwaukee City Charter.