The Art of Stiffing Contractors in the Trump Universe

From the time Mr. Trump assumed his role in the world of real estate and business, his approach to dealing with contractors has remained consistent and unyielding. The overarching principle is clear: never pay for something unless you are forced to. This strategy, often referred to as "grafting," has become his cardinal rule, enabling him to corner and manipulate the financial ecosystem around him.

Never Pay for Something Unless Forced

Mr. Trump’s business philosophy is undeniably unique and has been distilled into a simplistic mantra: if you are forced to pay, you are a loser. This mindset is deeply ingrained in his dealings with contractors, reflecting a broader strategy of leveraging their dependency on his projects to extract maximum value.

The Dance of Business and Deception

The intricate dance between Mr. Trump and contractors involves a delicate balance of adeptly manipulating agreements, pushing boundaries, and exploiting vulnerabilities. A prime example of this is the renovation project at his Mar-a-Lago property. Contractors who agreed to undertake the work typically faced a myriad of challenges, many of which were orchestrated specifically to facilitate Mr. Trump’s financial leverage.

Manipulating Project Management

Once contractors commit to a set price, Mr. Trump ensures that he remains unavailable for direct discussion or consultation with them during the project. Instead, he relies on surrogates, like his wife, to manage and oversee the work. By maintaining a degree of detachment, Trump creates a false sense of security for the contractors and then—just before or right after the project completion—he stages an “inspection.”

The loss of control over the project quality gives Trump the leverage to assert that the work is in breach of the contract. This claim is often backed by vague and subjective allegations, leaving the contractors in a precarious position. As a result, Trump can refuse to pay, invoking the threat of legal action and dismissing any negotiations with the terse response: "Talk to my lawyers, LOSER."

With the project nearly complete, the contractors find themselves in an untenable situation. They have invested significant time and capital into the job, and now face a choice between walking away with less than they were promised or pursuing legal action. The latter is often dismissed due to the significant costs and likelihood of losing more than the original contract price. Trump’s legal team is renowned for their aggressive and often unethical practices, making litigation an unappealing option.

In the case of Trump Entertainment Resorts, his approach to contractors and financial obligations is even more brazen. The company filed for Chapter 11 bankruptcy protection multiple times, strategically timing the bankruptcies to coincide with the completion of major projects. This not only allowed him to avoid immediate payment but also to manipulate the financial situation of his creditors. When faced with financial strain in 2004, Trump approached Credit Suisse First Boston for a loan, only to be rebuffed by the bondholders who had learned from previous experiences.

Conclusion

Mr. Trump’s approach to contracting is a testament to his business acumen and his willingness to bend and break the rules to his advantage. From the manipulation of agreements to the strategic use of bankruptcy, his tactics are designed to secure financial advantages at the expense of those who depend on his projects. Contractors who hope to navigate this treacherous landscape must prepare for the unexpected twists and turns, understanding that playing by different rules is often the only way to ensure fair payment.