Your Word is Your Bond

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I was in construction management/consulting for 10 years after college. Times were a hair different then - we actually had a category in our financial statements called, "Backlog!"

As we finished a project, we'd walk through the entire facility with the designers and owner to identify items that needed completed/corrected before final payment. We had just completed an addition to the Parker Brothers ("Monopoly," etc.) plant and they were having trouble controlling the air conditioning in one portion. We all suggested some ideas that might improve the situation. Some of the ideas were thrown out and we decided to implement others. In a few cases, the changes had to be made because the designer had specified other methods. So, as the general contractor, I asked the designer who was going to pay us for removing what he'd specified and adding items that were above and beyond the original design. He stated in front of all us, "Well, these are my mistakes so our design firm will have to take care of it."

We completed the work and I invoiced him for the extras. After waiting well beyond our "payment due" date and sending duplicate invoices, we still hadn't received payment. So, I picked up the phone and called him. I asked him if he'd received our invoices - "Yes, I did. As a matter of fact, I have them right here on my desk."

How about that? So I said, "That's great - what were you planning on DOING with them?"

He responded, "Well, I was hoping you'd forget about them."

I explained it would be nice to be able to work for free, but we expected payment for the work he'd instructed us to perform and reminded him he'd told us his firm would pay for it.

Here's his response: "I think the mistake you made was taking me at my word."

I'll never forget my reply - "You're exactly right - and I'll never make the mistake of taking you at your word again." UNREAL!

This instance amounted to a few thousand dollars. On a large manufacturing project, it's small change. But, I can remember a multi-million dollar, 500,000 square foot office building I completed and was paid for BEFORE I signed official contracts. We completed the entire project on a handshake!

In our current culture, HOW do we live out the title of this post? "Your Word is Your Bond" sounds great, until giving your word COSTS you. When situations change, or unforeseen circumstances arise, is it ever okay to "adjust" what we've committed to?