KICK BACKS Do you support them??

A

Al Patterson

Member
KICK BACKS
I was wandering what you guys thought about on giving or receiving kick backs when it came to proposals???
 
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I much prefer to call it "Networking for Dollars". That being said,,,Heck yea!
 
Ron Musgraves said:
Of course not, that would be dishonest.
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Yes Ron it is dishonest, but I have worked in hospital for years saw the venders give lap tops, nice flat screen monitors and you name it to the pple that help them get the job signed is honest no is it being done people trying to make money yes is there way to stop it nope I say be honest company do your best to give better product. Only pple I give kick back to is my home owners that send me work.
 
Here's a different twist. I utilize a window cleaning sub on my 2+ story commercial jobs. I do not add anything to his quote. But several individuals have told me they add 10 - 15% to subs rate.

I'd appreciate hearing what the "standard" is amongst the PWI members.
 
There is a big difference between a "kickback" and a referral fee.

The difference lies in who the recipient is.

If it is the recipient's job to procure the services and he requires financial or other gain to award the contract, that is a kickback.

If the recipient is the owner of the property, or he has no duty to procure the services either contracts with you for a predetermined discount or refers you to ANOTHER decisionmaker in exchange for a referral fee, that is a simple Referral.

I've given free filter service to business owners as a thanks for their commercial account. Most of them refuse the offer because they want to avoid anything that looks like a kickback. Others who understand the difference will sometimes take me up on the offer.

Am I wrong here? This was what I learned in college so it probably is wrong! :D

I offer a referral fee to ALL my customers.
 
tony shelton said:
there is a big difference between a "kickback" and a referral fee.

The difference lies in who the recipient is.

If it is the recipient's job to procure the services and he requires financial or other gain to award the contract, that is a kickback.

If the recipient is the owner of the property, or he has no duty to procure the services either contracts with you for a predetermined discount or refers you to another decisionmaker in exchange for a referral fee, that is a simple referral.

I've given free filter service to business owners as a thanks for their commercial account. Most of them refuse the offer because they want to avoid anything that looks like a kickback. Others who understand the difference will sometimes take me up on the offer.

Am i wrong here? This was what i learned in college so it probably is wrong! :d

i offer a referral fee to all my customers.
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provo college boy
 
Since I have no desire to ever spend time in an Iron Bar Motel, I do not do anything that might be misconstrued as a kickback, or payoff. I even had a former contract administrator that I worked with two years ago call me today for a job. Even though it has been two years, there is no way I would hire him because of the appearance of impropriety. My customer base is far different from most of yours, but I prefer to avoid all appearance of wrong doing.
If someone asks for a kick back, or gifts, I report them to their superiors. If the superior does not or would not have a problem with it, then it is okay. However, I have never found one that felt that it was appropriate.
 
based on professor Shelton (mr Tony's) college explaination ...I have never given a kickback in my life but do give referral fees all day long ....I'm a great believer someone always finds out.....
:)
 
Ron Musgraves said:
Of course not, that would be dishonest.
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Ron or anyone so I am little confuse is dishonest and unethicall to give any gift of any value to your PM or comerical companies that you work for. I was told it is very unethicall to give type gift to them.
 
I see no problem giving someone a reduced price on a job or even giving a "thank you" gift to them for doing business with you.
I would prefer to to do a job at a reduced price for them, if for no other reason for the being seen in their neighborhood with my rig working.......could lead to even more business. Me personally would probably never do a free job,,,,,,,would at least cover expenses and have a small profit figured in.
 
This is how I determine if it is a Kick Back....
If the giver or recipient of the Monies/gifts ect.. has to hide in anyway what was exchanged for the services to anyone involved ....then it is a kickback.
For example:
Who ever receives it should be able tell others and their superiors above them and for the contractor...they should be able to morally be able to tell others what they gave to get the contract.
 
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