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Contract - Utilities and Breach Penalty

 
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chopsuey



Joined: 16 Apr 2003
Posts: 3

PostPosted: Fri Jun 13, 2003 4:04 am    Post subject: Contract - Utilities and Breach Penalty Reply with quote

Hi,

I'm hoping you experts in China can help me with this one.

I have an offer from a Chinese university and have two questions.

They have stated 150RMB for water and electricity. This school is in a hot and humid region and wanted to know what an average monthly utilities bill would look like. Obviously, I wouldn't take 5 showers a day or leave the lights on 24/7.

Second piece, most importantly, is the breach penalty. They have only stated 2,000 RMB or $250 USD. I don't want to think the worst right off the bat, but what is bare minimum one can accept? To me, 2,000 RMB seems like a pretty light penalty if the worst case scenario should happen. I have seen 10,000 RMB and am more inclined to that figure. Any thoughts?

Please bear with me as it's my first contract and first time heading to China. Any thoughts/suggestions/advice would be welcome!

Thanks! Very Happy
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yaco



Joined: 03 Mar 2003
Posts: 473

PostPosted: Fri Jun 13, 2003 5:44 am    Post subject: utilities and bills Reply with quote

Dear Chopsuey

The water and electricity bills will vary depending on where you are located. Most teachers use up electricity bills in winter using heaters rather than AC in summer. If you are in the Southern part of China, 150 rmb seems a reasonable figure.

I would strongly advise against paying utility bills unless the following conditions are satisfied

a) You get a copy of the bill every month.
b) You pay the bill after you are paid your salary.

Unless the following conditions are met, you may find yourself ' ripped off ' by your school. They will often invent bills ' to claw back' money and find yourself in countless arguments.

Good luck.
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ESL Guru



Joined: 18 May 2003
Posts: 462

PostPosted: Fri Jun 13, 2003 6:04 am    Post subject: Reply with quote

Wonder why they do not give free water and electric like so many schools?

They have averaged their prior bills and have settled on a cash allowance that is cheaper for them. I would not work for any school that does not follow the law and that is free housing and all related expenses.
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Lela



Joined: 02 Jun 2003
Posts: 56

PostPosted: Fri Jun 13, 2003 7:50 am    Post subject: Reply with quote

The utilities should be included along with your housing. You should be receiving, not paying. Based on experience, I would say the utilites will be greater than 150 RMB in some months. Beware!
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yaco



Joined: 03 Mar 2003
Posts: 473

PostPosted: Fri Jun 13, 2003 8:51 am    Post subject: free utilities Reply with quote

I have learnt my lesson ESL Guru.

What is my punishment ???????
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ESL Guru



Joined: 18 May 2003
Posts: 462

PostPosted: Fri Jun 13, 2003 9:57 am    Post subject: Reply with quote

Yaco -

You are required to continue to be a darned good ESL teacher in China.
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Roger



Joined: 19 Jan 2003
Posts: 9138

PostPosted: Fri Jun 13, 2003 3:23 pm    Post subject: Reply with quote

I have my own home here, which affords me the privacy that you can't get on campus or in rented accommodation. So I have paid my utilities by myself. Did it ever ruin me? Ridiculous! Water comes to a few kuai a month, maybe 5, maybe ten; management fee is one kuai per square meter. Electric power: Dunno the kwh price, but I have several aircons (and never run more than one at any time). It costs me around 120 in winter, and perhaps 300 in humid and hot subtropical summer months. I cook on an electric plate and have an electri waterheater (is a lot safer!).
I do not remember how much allowance I had in previous schools where they housed me; usually, power and water were free, but telephone charges were up to me.
Even meals are free, always have been (except in my first three schools), but what is free often is worthless! So you can save a few maos and the time for cooking, but you are not enjoying your meals. I would rather have a decent and delicious meal - and pay for it!

Penalty:
2000 is a low penalty, methinks! SOme forfeit their monthly salary polus airfare! In my current contract it says that either party that wishes to terminate the contract would owe the other party 10'000 RMB. That's a novelty - the school MUST pay a peNALTY TO ME if they want to fire me! I do not believe they can get ten thousand from me if I walked out on them!
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chopsuey



Joined: 16 Apr 2003
Posts: 3

PostPosted: Fri Jun 13, 2003 4:40 pm    Post subject: Reply with quote

Thanks for the input!!! Much appreciated.

*sigh* I wish contracts could be perfect and wouldn't have to go through this. I've referred to Dave's contract survival tips, but is there an official "must haves" in a contract that is binded by Chinese law?

Thanks again and here's hoping they are willing to change these items and me heading to China!!!
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arioch36



Joined: 21 Jan 2003
Posts: 3589

PostPosted: Sat Jun 14, 2003 5:39 am    Post subject: Reply with quote

You may wish for a higher breach penalty. It protects you as much as them. Some places in the north don't have radiator heating. Electric heating can be expensive. Tell them it is a concern of yours. Colleges are bureaucracies. Many times there is no reason for things on the contract other then that was the particular form that the FAO found.

Two of my contracts stated I would have a "co-worker". Never such an animal. Maybe a hangover for the old days when the college had a "waiban" asigned to you.
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