ISNetworld subscription is a procurement snare of contractors for a corporate procurement process.
HEADS UP! ISNetworld and the other procurement contractors provide an important business service; they point out the high-risk work sites where you will eventually regret working and the corporations that are conducting business against public policy.
The 1st step will be a heavy investment of $36,000 to $96,000 per year to get qualified as a spot market service provider candidate. You will be required to provide a Primary and Non-Contributory endorsement on a Certificate Of Insurance Certificate for specific Commercial General Liability insurance coverage usually greater than 12-million-dollar limits with specific endorsements, and render business documents that a lawyer needs to promptly collect the maximum CGL insurance benefits.
The 2nd step will be an agreement of contract terms and conditions. ISN Clients generally conduct business against public policy and will demand a broad form of indemnification with unlimited claim triggers and limits. At this point the ISN Client will manipulate you into a one-sided contract agreement whereby you will be assuming financial responsibility for extraordinary risks that the ISN Client cannot control, mitigate or insure, and you will probably be required to surrender your insurance coverage's benefits. You also will be required to assume an extraordinary amounts of financial responsibility for the negligence of the ISN Client and the negligence of his agents. NOTE: It will be difficult to impossible to do business with a ISN Client’s contracting officer who will have knowledge and authority to negotiate their one-sided contract.
The 3rd step you will be invited to participate in a reverse auction. Further on, as part of the reversed auction your contractual indemnification obligations and claim triggers will be expanded with sign-in sheets, purchase orders, and other documents the ISN Client issues conducting business.
STOP, THINK and INVESTIGATE! - carefully weigh and consider the prospective client, recalculate your overall business break even analysis including a loss allowance, and consider conducting business as an LLC corporation with a quick exit plan whereby you can survive a huge loss when it happens. A total loss of your business assets is not an uncommon loss allowance because your assumed financial risks will be in the millions and sometimes billions of dollars with a higher-than-expected probability of loss. Why do you think the INS Client puts the money first? Profit is a difficult issue serving high volume low margin ISN Clients and corporations shifting extraordinary risks. They are actually a small percentage of the USA economy and are not worth the pain and suffering that comes the deals they want to make. Beware of corporate procurement strategies that are against public policies and learn more about the extraordinary risk shifting of the Express Negligence Doctrine. Such a provision, which is intended to comply with the “express negligence doctrine” could read as follows and will be presented in bold print:
Sample #1:
INDEMNIFICATION FOR STRICT LIABILITY OR INDEMNITEE NEGLIGENCE
THE INDEMNIFICATION PROVISIONS IN THIS ARTICLE SHALL BE ENFORCEABLE REGARDLESS OF WHETHER THE LIABILITY IS BASED ON PAST, PRESENT OR FUTURE ACTS, CLAIMS OR LEGAL REQUIREMENTS (INCLUDING ANY PAST, PRESENT OR FUTURE BULK SALES LAW, ENVIRONMENTAL LAW, FRAUDULENT TRANSFER ACT, OCCUPATIONAL SAFETY AND HEALTH LAW, OR PRODUCTS LIABILITY, SECURITIES OR OTHER LEGAL REQUIREMENT), AND REGARDLESS OF WHETHER ANY PERSON (INCLUDING THE PERSON FROM WHOM INDEMNIFICATION IS SOUGHT) ALLEGES OR PROVES THE SOLE, CONCURRENT, CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF THE PERSON SEEKING INDEMNIFICATION, OR THE SOLE OR CONCURRENT STRICT LIABILITY IMPOSED ON THE PERSON SEEKING INDEMNIFICATION.
Sample #2:
TO THE
MAXIMUM EXTENT PERMITTED BY LAW AND IN ADDITION TO ANY OTHER INDEMNIFICATION
OBLIGATIONS CONTAINED IN THIS AGREEMENT, INDEPENDENT CONTRACTOR SHALL RELEASE,
DISCHARGE, RELINQUISH, DEFEND, INDEMNIFY AND HOLD HARMLESS INDEMNITEES, ITS
PARENT, SUBSIDIARIES, AND AFFILIATED CORPORATIONS AND BUSINESSES, AND EACH OF
THEIR DIRECTORS, OFFICERS, EMPLOYEES, AGENTS AND OTHER REPRESENTATIVES
(individually and collectively “INDEMNITEES”) FROM AND AGAINST ANY AND ALL
CLAIMS, RIGHTS OF RECOURSE, LIABILITIES, CAUSES OF ACTION, DAMAGES, LOSSES,
SUITS, PENALTIES, FINES, COSTS, FEES, AND OTHER EXPENSES (INCLUDING COURT COSTS,
REASONABLE CONSULTANT, EXPERT WITNESS AND ATTORNEYS’ FEES AND OTHER DEFENSE
EXPENSES), HEREAFTER COLLECTIVELY REFERRED TO AS “CLAIMS”, ARISING OUT OF,
RESULTING FROM OR IN ANY WAY CONNECTED WITH OR ALLEGED TO HAVE ARISEN OUT OF,
RESULT FROM OR BE IN ANY WAY CONNECTED WITH: (I) ANY SERVICES PROVIDED OR
ALLEGED TO HAVE BEEN PROVIDED BY INDEPENDENT CONTRACTOR OR ITS PERSONNEL; (II)
ANY ACT OR OMISSION OR ALLEGED ACT OR OMISSION OF INDEPENDENT CONTRACTOR OR ITS
PERSONNEL; AND/OR (III) ANY FAILURE OF INDEPENDENT CONTRACTOR OR ITS PERSONNEL
OR ALLEGED FAILURE OF INDEPENDENT CONTRACTOR OR ITS PERSONNEL TO COMPLY WITH
EACH AND EVERY WARRANTY, REPRESENTATION, OBLIGATION, OR OTHER TERM AND/OR
PROVISION OF THE CONTRACT DOCUMENTS, (IV) CLAIMS OR SUITS FOR ALLEGED
INFRINGEMENT OF ANY PATENT, COPYRIGHT, INDUSTRIAL DESIGN, OR TRADEMARK OF ANY
PARTY DIRECTLY OR INDIRECTLY RELATED TO
WORK PROVIDED.
IMPORTANT NOTIFICATIONS THAT YOU ARE OBILIGATED
TO MAKE:
The deals you make will affect corporate stock holders, lenders,
workmen, vendors, and sub-contractors. You are obligated to keep everyone
informed of their exposure to your extraordinary contract provisions of shifts of
risks or face compounded law suits
that will add injury to losses when things go wrong. Normally
risk allocation is shifted from the highest tier to lowest tier
The following is a list of the most important notifications:
Financial Statement should include current "Contingent Liabilities"
A Document
Acknowledgement and Attestation by each person on the jobsite describing the
deposition of the work site "Commercial General Liability" and "Workers
Compensation" insurance benefits. And the "moral hazards of conducting
business that is against public policy".
SOME GOOD INFORMATION and ADVICE THAT IS USUALLY ENORED:
Always complete the core elements of a sale before investing cash into a sale opportunity.
Present your contract terms and conditions of service to a prospective client's for acceptance before pricing any work for the following reasons: (1) You need to confirm the sincerity of your prospective client before anything else. He has no concerns about wasting your time and getting valuable information along the way. NOTE: Pay close attention to a prospective client's contracting officer's request for a quotation without any planning documents. This is a very bad sign that you should regard with high concerns. No profitable business owner proceeds with the conduct of his business without planning documents ! (2) You need to confirm that the proposed project is funded and will definitely proceed. (3) You absolutely need a baselines of costing to base the pricing of your service.
Know what you need to operate a successful business and get it, or turn the deal down.
Deal with the Contracting Officer that has the knowledge and authority do business and don’t be afraid to request his corporate certificate of authority. You will need it later on.
Detail scopes of work, contract terms, conditions and billable procedures of your proposal because all contracts and arguments will be settled by specific performance of the contracting parties.
Read contracts carefully and especially the conspicuous CAPITAL BOLD PRINT. Federal and State Uniform Commercial Codes specify that extraordinary indemnification contract terms to be specified by conspicuous capital bold print. Additionally most State Anti Indemnity Statutes comply with the UCC Codes for enforceability.
All contracts have cost of compliance and you need to know that cost before you make a deal.
Signing a client corporate documents on-the-spot is a very important event and a reckless practice. Keep in mind that you probably would not be asked to sign a form or document unless someone thought it was important.
Anti-Indemnity Statutes probably will not protect you from the consequences of contractual obligations because "a deal is a deal in most States".
Do not surrender your insurance coverage benefits to any of your clients. You will become a slave to that client for the duration of the deal you made.
A written and signed document will supersede all oral discussions and promises. Get written orders for all work ordered on-the-spot and on-the-fly.
Follow the money – schedule payments by milestone events and don’t continue work without a on-time payment plan.
Do not assume financial responsibility for market price structures.
Do not conduct business against public policy. You will not be able to roll encumbered paper with any lenders. Contractual risks should never exceed the value of a sale.
Do not assume financial responsibility for the negligence of a person or entity that you have not commissioned to provide material and services. This is idea is against public policy, expensive, and is special market insurance coverage, or just an uninsurable risk covered by your company assets.
Mostly Factors (high risk lenders) finance receivables from INS Client’s, not banks. Average minimum factor rate is 10% per month and another extreme covenant added to previous extreme covenants.
All work sites have their own work constraints and ISN Clients have some of the greatest work constraints in the world. Work site constraints are directly related to profit.