Every Friday, we select a few articles from the week that we think are worth your time as a construction financial manager (CFM). We look for compelling articles not only about financial topics, but about business, technology, and life, that challenges you to think about your role as a CFM in different ways.
Are Teaming Agreements Binding and Enforceable
Paul Mengel writes at JDSupra this week about the often non-binding, unenforceable nature of “teaming agreements.”
If you’re not familiar, a teaming agreement is an agreement by multiple construction parties, often a prime contractor and subcontractor, to enter a bid together, and to embark on a project together should the bid be awarded. These agreements often set out division of labor and funds, pledges to cooperate, termination provisions, and more.
Problems arise, however, when one party wins a bid and decides to renege on the agreement. Courts have allowed this, as they often view teaming agreements as non-binding “agreements to agree” rather than contracts. This is because teaming agreements are dependent upon future actions (e.g. the award of a contract) to kick into action.
> Learn which provisions you can include in a teaming agreement to make it more binding
What Makes a Good Credit/Collections Manager?
On one extreme, you’ve got people who view collections as a rote, robotic process. On the other, it’s seen as a bullish routine. Neither works.
Levelset‘s Inbound Marketing Manager Danny Garfield published an article last week about hiring credit managers. His key insight is that collections is about relationships more than anything else. Credit managers are key to lasting, healthy relationships with customers. Likewise, a bad manager can ruin a relationship and lose your business a client.
“…credit and collections managers are at the front lines. They’re the ones who communicate with customers on a daily basis—by phone, email, and perhaps even in person,” Danny writes.
> Learn the 4 qualities to look for when hiring credit managers