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Thread: Consulting construction projects
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01-22-2011, 04:16 PM #1
Consulting construction projects
I've been getting calls inquiring us to perform construction draw inspections on a larger scale; to include QC, code, and monitoring of construction progress. This last prospect is a bank that's financing a 2.2 mill dollar high end restaurant. I used to just charge a flat fee, but now I need more players in the mix (PE) and am not sure whether to charge a percentage of the project cost or an hourly fee. Has anyone here performed something like this?
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01-22-2011, 08:32 PM #2
Re: Consulting construction projects
And include a time limit corresponding to the project length of time for the project, and any time which extends beyond the projected time is additional.
I.e., if the project is scheduled to be 12 months and it runs 18 months, you want to get paid for the overrun of time as you will need to continue making inspections.
Cost overruns are also additional as cost overruns will require additional inspections and reviews.
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01-23-2011, 12:04 AM #3
Re: Consulting construction projects
Jerry
Good point on the overruns. I'm not sure what percentage is average to charge. Do you perform these? I dont even have a contract or disclaimer written for something like this. I dont want to turn it down though, i believe it would be a great project and opportunity to add to our profile.
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01-23-2011, 08:58 AM #4
Re: Consulting construction projects
I do this type of work and my fee is per visit. The fees range from $300 to $400 for a local job, per visit. I do not do any code compliance, this is left up to the AHJ and I make sure my client knows this. Also you need to check with your E&O provider to see what square footage restrictions you have. I'm limited to buildings under 75,000 sf.
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01-23-2011, 10:10 AM #5
Re: Consulting construction projects
John,
Probably around 3%. I have in the past, yes, and have another potential one coming up.
The key is this:
You need to find a PE in your area who you know and can set up a working agreement with. All the work is performed under the engineering firm, the engineer reviews (and corrects where necessary) all the reports and signs and seals the reports - the reports are now engineering reports, you are the 'worker bee' working under the engineer's supervision. The monetary split is up to you and the engineer to agree upon.
In projects as you describe, the bank will be able to use engineering report more effectively than just construction monitoring reports, or even reports from a GC (if you are GC like I am) - being engineering reports is what demands the higher fee. and what gets the higher fee, and what makes the reports more usable to the client.
How often you check the job depends on the agreement you make with your client, you will probably want to check it at regular intervals, say twice per week. If you were to use Scott's number of $400 per inspection and made twice weekly visits for one year, that would be 104 inspections x $400 = $41,600 ... and that is for non-engineering reports. The lump sum based on 3% would be $66,000. Using 2% would be $44,000.
There are times when the engineering reports come in handy, and that working with an engineer is really necessary to resolve (or help resolve) some issues.
You can also include a plan review to help identify potential construction problem areas before construction commences, and, if you are qualified to do so, you could even review the plans for code compliance (not in place of the municipal code plan review, but to assist and potentially catch things which they may miss) - all of those things add value, which increases the price.
Keep in mind that if you are not code certified and qualified that you would need to hire someone who is to help you with those (an to make those code reports of higher value).
Does that mean a person who is knowledgeable in code but not certified in code cannot do as good of a job as a code certified person? Nope.
But is does mean that the code certified person's report have more meaning and value, and are worth more, because they were done by and signed by a code certified person.
If all comes down to being able to offer more, which results in being able to charge more - as long as you can come through and produce the better produce you are offering ... if you can't, then you could actually be digging a big hole for yourself.
Never offer more than you can provide, always provide more than you offered - makes for better client appreciation of what you did and for more referrals.
Just some random thoughts as I was typing.
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01-23-2011, 10:17 AM #6
Re: Consulting construction projects
If it is a new client it is impossible to bid the job as a percentage without going way too high on price to cover yourself. I've done percentage fees with established clients, where I know how they operate, their subs to some extent, and the routine,etc. It's possible to do but not preferable.
Normally though, a per visit or per hour fee plus an upfront retainer are the best way to go for both parties.
Under this work, depending on your State, you may be considered a Consultant. Some States have specific language and info that is required in a consulting contract. I suggest you look into that. I found a few online and modified them for our needs.
- You can do partial Code inspections but I would warn against it overall unless you are really adept at it already. Your contract should absolutely disclaim the ability to do a full Code inspection, especially on commercial. Our DOB has a tendency to change or establish additional Code requirements throughout the year. You may not be privy to that info and therefore could have issues
- You need a full set of plans and all attachments and changes
- Clients in this case always want everything, which isn't realistic. Have a discussion with your client and find out what it is that your client REALLY wants and needs. Then tailor your service to provide that service and satisfaction.
- Does the client really want QC, built to drawings, best practices, keep an eye on contractors so they don't scum together things on the cheap.
- I had a client who wanted everything. After discussions what he really wanted and needed was someone to keep contractors inline to stop water intrusion issues. This meant making them do flashings, lintels, mortar admix, weep holes etc properly or at all for that matter.
- A client like this typically calls because he has had problems in the past. Whatever THOSE problems were, you MUST resolve THEM along with everything else on the job, otherwise the client won't be happy.
- This is nice work but it can also be a nightmare depending on the contractors. You may want to ask the client if his guys are new or if he has used them on other jobs. Look them up, see what there rep is etc. This may help you gauge your workload.
- You also can't see everything. You go on Tuesday, come back on Friday, whatever was done between could be covering up things you wanted to see. Establish a regiment of when you will go to the site. Anytime, before things are closed, etc.
- Don't expect deficiencies to be changed just because they are wrong. Sometimes money prevails.
- Don't be a snobby inspector to workers. Be nice and it will help you get access and conversation. Amazing the dirty little things you find out.
- Have a hardhat, gloves and boots
Ok I'll stop
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01-23-2011, 10:20 AM #7
Re: Consulting construction projects
Scott,
Are you performing a phase inspect, or draw inspect? 300 -400 ? For residential or commercial? What if it was 75,000 sq ft? I know I wouldn't take on this project for 400 dollars per visit, even if it were under 5000 sq ft. There's a guy out of Ontario Canada who runs a commercial inspection firm, but I forgot his name, name of the company, and haven't spoke to him in years. He's pretty wise in these matters. I'm still interested in the percentage factor for the project cost. I know some estimators for construction projects make around one percent on top of their salary if awarded the contract.
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01-23-2011, 10:58 AM #8
Re: Consulting construction projects
Much information provided, thanks. My reply to Scott's comment came right as Jerry and Markus replied themselves.
Jerry, I do have an engineer I've done business with in the past, but he wont handle anything in the MEPS area. It's hard to find a PE who does it all. I was only going to use him/them for his expertise and professional stamp. I want to use my reports, so that my company logo is at top for product marketing. As for bringing in a code inspector, would it be unethical to take his report and transfer the info into our report as our own? Afterall, he works for me anyway,right? Thanks for the percentage number.
Markus, good points on the risks of code inspections. I have no contract for this work nor know where to loo for one except here. Any help would be appreciated. I've done GC work in years past and currently prefer and market mainly commercial RE inspections. I've been tinkering with the idea of getting back into construction, because I miss the whole scene, especially the roach coaches . These type consultations would satisfy that craving and potentially open the door to more professional work in other areas. I take it between you and Jerry, it would take two visits per week? I was more on the line of one per week. I understand not to be cocky around the workers and contractors as it doesnt help, but I also see the power one carries above the super, or GC, since I'd be the eyes and ears of the bank who holds everyone's money.
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01-23-2011, 11:30 AM #9
Re: Consulting construction projects
There are stages of construction where you can get by with 1 per week but not many. I've done 1 per week for clients. Overall it doesn't work and I flat out tell clients its a waste of money.
Here's the issue as I see it. Jerry will undoubtedly correct me
When you do one a week, too much work gets done between inspections, then add the couple days for the report and client to actually read it, it can easily be a week and a half. At that point tooooooo much work has been done for a client to be willing to deal with the conflicts and costs of correcting those problems. The contractors lie, complain, scream that it will be insanely expensive blah, blah, some truth but mostly BS. They should have done it right in the 1st place.
A critical factor often becomes time. If it takes another week to remove and correct the bad work, that's a week the job is now behind schedule. Add that into a few times and the project becomes really behind schedule.
At least two insp a week tends to work well. At various phases I have done 3-4 a week.
When dealing with non-compliance you MUST have paperwork. The contractors will talk all sorts of nonsense but rarely have paperwork. Have manufacturer or whoever paperwork. Always refer to the paperwork. Telling people it isn't YOU demanding X, its the paperwork/manufacturer/etc helps to ease tension against you and avoid elevated conflict.
It's not me who's saying you have to give me a check, its the contract. The contract demands you give me a check. So just give me a check so the contract is satisfied.
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01-23-2011, 01:08 PM #10
Re: Consulting construction projects
The bank is going to be looking for CERTIFICATIONS, not "just" reports for pay out vouchers.Engineering or Architectual Firms letterhead for reports and certifications from same.
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01-23-2011, 01:59 PM #11
Re: Consulting construction projects
H.G,
You're saying our logo and letterhead will not suffice without certification numbers? Those I'm willing to hire for this contract would be subs. I would be the person on site most of the time. The PE would be my consultant, would visit the site on a part-time basis and at my call when needed. I dont think charging an inspection of say 400 per would cover my sub expenses unless I charged a percentage of the project on top of that.
Would I just be better off partnering with an engineering firm? It seems my contribution would be only the client lead. I'm always up for a challenge and would like to take this head on, but obviously need help from experienced pros here.
The reason I dont want to partner up, but instead hire on subcontractors, is I remember about 10 years ago I was awarded a rather large construction contract and was advised by the older contractors to partner up with a larger competitor. I refused, and took the "no guts, no glory" approach, because I assumed the larger contractor would not only take a sizeable percentage of profit, but also interfere at meetings and take most of the credit. Anyhow, that project was completed with no partners and my company and name took full credit as well as profit ( except for Uncle Sam). I'd like to take that approach again with your advise. I've gotten much already just talking about it here. Speaking of paper, that's what I need; the reports and contracts. I have till Wednesday to propose our fees.
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01-23-2011, 02:02 PM #12
Re: Consulting construction projects
The banks/owners/developers I have worked with in the past were not interested in "certifications", they used the "reports" (engineering reports) to get the work corrected, get funds credited back/used to offset change orders/etc, or to accept the non-complying work for a reduction in the contract price.
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01-23-2011, 02:12 PM #13
Re: Consulting construction projects
Jerry,
Are you an engineer? Or did you hire one on? The bank wants every report to be an engineers'? Whenevr I need, or refer a PE they charge about 450 per report at least.
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01-23-2011, 03:31 PM #14
Re: Consulting construction projects
I work with one when needed.
The bank wants every report to be an engineers'?
Whenevr I need, or refer a PE they charge about 450 per report at least.
All depends on you, the engineer, and the bank (what the bank wants versus what they are willing to pay for).
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01-23-2011, 03:41 PM #15
Re: Consulting construction projects
I looked up your posts.(Perhaps others might want to do the same, they seem to have forgotten "you").
Since you've had nothing pleasant to say about the site or members here, except Rick Hurst, suggest you ask him, Sherlock!
As you wished:And from January of THIS year:
and
Originally Posted by John Watson
http://www.inspectionnews.net/home_i...tml#post155316 Not unlike the enhanced unlicensed Termite /Home Inspections you were looking to use that dog for. Hmmm.
As Jim Luttrall said in response to one of your earlier posts:
Yes, as you have proclaimed you are using an alias, that of the fictional character Sherlock Holmes' assistant, Doctor John Watson. Something Scott Patterson doesn't seem to have a problem with.
This "Golden Girl hag" has already "piled crap" on a thread, now realizing you previously announced you'd never post again and repeatedly insulted every participant here, the forum itself, any inspector who reads a topic discussion on this forum (told them to learn from their own mistakes, not read posts here and mind their own buisness!), and some of those who have previously and presently tried to help answer your questions and contribute to topic discussions! Why are you back this month making new topics asking for information then?
Guess what? Banks care, so does the investment pool, so do the regulators, you know who really cares? the Engineer, and the Registered Firm he works under, the Engineering Board, and his professional liability indemnity. You don't hire an engineer or architect entity (not individual licensee) to certify your inspection report after the fact and adopt it as his own work product, you work under his supervision and in his employ start to finish if it requires engineering or architectual certification S/S certified on the draw.
Thought you declared you were not going to POST here anymore??
And why are YOU asking about credentials of another poster?
Last edited by H.G. Watson, Sr.; 01-23-2011 at 04:05 PM.
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01-23-2011, 04:05 PM #16
Re: Consulting construction projects
H.G,
You went and pasted negative quotes from my past posts, yet skipped the ones in between and by others and picked only the negative ones like certain news groups who edit only the sound bites that help their interest. Whether arguments were made a year ago, or a week ago, this thread is a new one and actually positive and friendly. So then, you decided to investigate someone you don't recognize and decided you also DONT like him (me) and are trying to publicly burn me by enlarging my words much larger and coloring them read. You came in here and destroyed a perfectly good conversation, yet at the same time YOU totally made my argument for the same reason I made those comments in the past.
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01-23-2011, 04:41 PM #17
Re: Consulting construction projects
Jerry,
Thanks for that. Since you mentioned to bring on the PE as a partner, do you include your logos on any cover sheets, or do you use the PE's company name as the primary player in the contract? It sounds like we would even need a joint check agreement for billing.
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01-23-2011, 04:51 PM #18
Re: Consulting construction projects
WRONG!
And if you had to ask...
Regarding your crying foul, I disagree! I didn't cut and paste, I quoted entire posts, highlighting for emphasis. In fact, all such were properly formatted quotes which include imbedded links which take the reader to the actual topic discussion at the point of your quoted contribution. Unlike SOME, I do not "cut and paste"
Your meager (remaining) participation here since 2008 was fairly and completely represented. This includes up to and through the beginning of this year and to date.
Remarkably even after proclaiming in your first post of the year you would NOT be posting, twice now you solicit advice on how to do something out of your practical experience; both suggestive and indicative of downright deceptive and IMO criminal practice.
Will not conspire, aid or abet same.
There are actually "rules" about such things, and yes, "even" on "this forum" they are expressly prohibited.
Simply and quite FAIRLY reminding others you have proclaimed you are downright deceptive in your participation here.
Last edited by H.G. Watson, Sr.; 01-23-2011 at 05:19 PM.
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01-23-2011, 06:01 PM #19
Re: Consulting construction projects
HG,
You're a real piece of work. What you say here on this forum by trying to slander me publicly would land you a lawsuit or some broken teeth if told to my face. But, I doubt you would dare say it to my face. You're the reason my login is an alias here. I was right to assume that. I will not justify nor try to counter your claims that I have no experience nor professionalism. You pasted again, and again take it out of context, but it's not that you misunderstood what I lack in writing skills, It's that you have a mean spirit and porbably have nothing to do but be a total pain in the ass. I know I'm relatively a newbie here, so does that mean I don't belong? Is this like some sort of private club? If you have a personal problem with me, why don't you take it up with me privately instead of embarassing you, me, and our industry?
Were you assuming that I would take an engineer's report and stamp and call it my own? If I truly was going to do that, I sure wouldn't mention it here. Just quit already, and let the rest of us get back to what we were talking about. You're being a nuisance. Take your medication and go to sleep already.
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01-23-2011, 06:04 PM #20
Re: Consulting construction projects
"do you use the PE's company name as the primary player" Yes.
"in the contract" No.
"It sounds like we would even need a joint check agreement for billing." The check is paid to either party, who then pays the other party, or you could open a separate checking account listing the two parties as 'Blah-and-Blah Joint Ventures' and handle the money that way for each of those projects.
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01-23-2011, 06:23 PM #21
Re: Consulting construction projects
Jerry,
If your company name is X and your engineer's company name is Y, but the client called you, how do they remember you instead of the engineer for the next project or referral?
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01-23-2011, 06:40 PM #22
Re: Consulting construction projects
Because they got *ME* through a referral, and they worked with *ME*, *I* attended all the meetings, *I* did all the inspections, they needed something they called *ME*, to the client, the engineer is just backup - like if you always worked with 'Bob' with ABC company and you always called 'Bob', and 'Bob' always answered your questions, ... to you, 'ABC company *is* 'Bob'.
Also, the engineer knows that this business if 'from you' and future related calls go to 'you'. I is called trust, if you cannot trust someone you should not be in business with them.
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01-23-2011, 06:46 PM #23
Re: Consulting construction projects
John, this is why there is an ignore function. That way you don't have to see peoples posts that are not useful. I rarely use the ignore function but save it for those that are continually just stirring up trouble or are so full of them selves that the BS outweighs the positive aspects of their presence. The only way you see their BS is if someone else quotes them.
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01-23-2011, 06:49 PM #24
Re: Consulting construction projects
I guess what I was trying to say was, do you put your logo and on the cover letter?
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01-23-2011, 07:13 PM #25
Re: Consulting construction projects
I've never had a Bank reject one of my reports because I'm not an engineer. The info is solid, that's what they care about.
I have to say John you don't seem too swift on the business end of things. Some of the questions you are asking as far as dealing with report names, checks, etc. doesn't show much experience.
To answer the question though, YOU are the primary. The client called you first and will call you again if you do your job properly. You should deliver the report from a sub as-is. However include your cover letter highlighting the report, its ramifications and your recommendations as the primary, etc.
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01-23-2011, 07:14 PM #26
Re: Consulting construction projects
Jim,
What ignore function? Are you saying the person that posts the topic has an option to choose who's replies goes and doesn't? I'm looking on my screen and dont see anything like that, unless I'm clueless to something obvious here. Well, at least there's good football on tonite.
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01-23-2011, 07:37 PM #27
Re: Consulting construction projects
First, you don't exist. You are a fictional character. You declared this yourself. One cannot slander a fictional character, and a character you are, indeed.
Next, I find it ironic that from your first appearance on this forum you slammed it, and the very party you are pandering to now for informaion.
However, I will not quote what you said (begining with a flabergasting postion) and what followed on that thread, for to do so, would require bowdlerisation to keep within the forum rules.
For those interested this is a link to the thread.
http://www.inspectionnews.net/home_i...akers-not.html
You made your debut at post 47, You were immediately welcomed, Your next post on the forum was number 57, here you slammed the forum completely, and its participants as being unprofessional, And post 59 where you tell those on the topic to remove a device or tool from their lower regions. It was an interesting debut.
Third, I further find it ironic that amongst those engaged in peanut gallery knee jerks include those who have pointed your own (can a fictional character have a self?) self-contradicting nature before.
Back on topic, it was YOU who suggested that YOU were not qualified to do code inspections, that YOU would seek to subcontract this work, and YOU that proposed pilfering and plagerizing the work product of another QUALIFIED party, certified and competant in PLANS REVIEW and CODE INSPECTIONS producing a report via a completely different business entity, and submit said work product as your own, and pass it off as your own work on your own report under your business organizations letterhead "for the advertising", and asked (and justified) was this "unethical"?
THIS OF COURSE IS WRONG TO DO and UNETHICAL, and likely criminal, for a draw inspection certification.
I do not care if you paid for the production of it, the work product is the property of the individual and/or entity who authoried it, under the auspices of the business organization entity of that qualified code inspector.
If you actually employ the certified code inspector his report would have been on your own company materials. However, the report would be authored AND QUALIFIED by the individual who's credientials, and certifications warranted the report.
You've seen fit to make mention of "insurance" forums. Have this conversation with your agent and attorney.
In the meantime, oops, nope. That wouldn't be polite to say, nevermind.
Your "Attorneys" can reach me via the Forum Administrator, Mr. John Doe, John Watson, whatever. File your case, do it immediately! I'll make myself available for service, you betcha. I look forward to it.
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01-23-2011, 07:51 PM #28
Re: Consulting construction projects
Go to the "User CP" and down to the misc. section near the bottom and select the ignore/buddy feature.
It does not give you control over what people post, just what you see. The offending azz keeps talking but you don't see it. Yeah, you know they are there yapping but it is like a mute button.
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01-23-2011, 07:55 PM #29
Re: Consulting construction projects
Markus, you're right to assume that I don't have much experience in the way my questions sound.
Let me just clear something up so you dont get the wrong impression:
1. I have GCed work before and know the game
2. I DO hire subcontractors if needed to perform larger commercial building inspections and attach their reports to mine with my cover letter.
3. I HAVE worked and hired engineers as subs for jobs, but not as partners.
From what I gather from your reply, is, you treat the contract as though you were the GC. Jerry treats it as a partnership with an engineering firm. So, not everyone treats it the same.
You're right, I don't know the business end of things when it comes to this type of service. That's why I'm asking. Does it mean we shouldn't try? Never. That's how I opened in the first place.
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01-23-2011, 08:00 PM #30
Re: Consulting construction projects
First defense to a defamation claim is truth.
Next its LIBEL not slander. Which you have, not I.
Take it up privately? Funny. You threaten to knock out my teeth, claim ignorance and cry "poor writing skills". You have had no difficulty threatening, disparaging this forum from your first appearance, you did so again at the begining of this very month.
36 posts you have made without any involvement from me.
Your debut and first appearance on this forum predates my own by several months.
It is you who defame and libel. I have not slandered you, whomever YOU are. You defame yourself.
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01-23-2011, 08:11 PM #31
Re: Consulting construction projects
Jim,
I tried it, and it deleted all their posts. Pretty cool. Does this mean everyone can still read the offenders posts except me? Either way, It's like fast forwarding past those unwanted commercials.
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01-23-2011, 08:59 PM #32
Re: Consulting construction projects
Markus,
Same here ... for THOSE types of reports.
However, when you get to take it a step higher, the pay gets better, the inspections get better (an more complex) and, yes, there are very good reasons to take it to that level (above and beyond a GC/code inspector/home inspector level).
The info is solid, that's what they care about.
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01-23-2011, 09:28 PM #33
Re: Consulting construction projects
Your claim you were posting under an alias July 13, 2008:
Your soon following post, to Jerry Peck and Ted Menelly and your "justification" and "excuses" for being insulting, defaming, and unappreciate of the very forum you're presently using:
Pander away.
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01-23-2011, 09:52 PM #34
Re: Consulting construction projects
Humph. Well I'll be. How things change over time.
What is everyone afraid of about posting as themselves. Crazy world we live in! If one does not want to be themselves then why would they want to be someone else pretending to be someone else and maybe pretending to be even someone else . And I thought I was the only one with issues . At least I am being me admitting I have issues So, maybe I don't have the issues I think I have
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