Residential New Construction Contracts

[MSU_Electrician]

We are a small service shop, I have stayed out of new construction for two years now but we have started to bid a few custom homes for some of our better customers. I have a very basic contract we used for our first new construction I feel like I have left a lot of room for conflict. Any suggestions on what to cover in a contract would be great thanks!


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[Little Bill]

In no particular order....
Don't put a firm fixed price because of change orders, site conditions, material prices, give an estimate
Material delivered to site is owner or GC's responsibility
Note about change orders being extra, customer and electrician must sign, give your price for them like the hourly rate plus material with mark-up (give the % of mark-up)
Break down of payment schedule, example: % on start, % on rough-in, % or amount for service release, % on final

These are some of what is on my contracts. Others can chime in with their thoughts.

 

[petersonra]

TALK TO YOUR LAWYER!!!!!

 

[MSU_Electrician]

TALK TO YOUR LAWYER!!!!!

My lawyer will be writing it he has asked for some trade specific input.


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[Coppersmith]

I don't do whole new houses, but I do substantial additions. I've had clients buy instant water heaters and spa tubs online and want me to install them, but they are not UL (or other agency) approved. The wiring was unlike any I had seen. I now state in my contract that all appliances installed must be approved for use in the US.

 

[petersonra]

I don't do whole new houses, but I do substantial additions. I've had clients buy instant water heaters and spa tubs online and want me to install them, but they are not UL (or other agency) approved. The wiring was unlike any I had seen. I now state in my contract that all appliances installed must be approved for use in the US.

I would add such a requirement for luminaires as well. There are a lot of sketchy luminaires out there.

 

[MSU_Electrician]

In no particular order....
Don't put a firm fixed price because of change orders, site conditions, material prices, give an estimate
Material delivered to site is owner or GC's responsibility
Note about change orders being extra, customer and electrician must sign, give your price for them like the hourly rate plus material with mark-up (give the % of mark-up)
Break down of payment schedule, example: % on start, % on rough-in, % or amount for service release, % on final

These are some of what is on my contracts. Others can chime in with their thoughts.

Thanks this exactly what I’m looking for!


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[Ravenvalor]

Speaking of lawyers, what are common reasons that electrical contractors find themselves being sued over? The industry seems rife with opportunity for an unscrupulous person (lawyer or not) to drum up something to cash-in on an unsuspecting electrical contractor. I have had a theory for quite a few years now that the children of electrical contractors become lawyers at a high percentage rate.

 

[petersonra]

There are enough shady contractors out there to keep a lot of lawyers busy.

 

[Coppersmith]

Speaking of lawyers, what are common reasons that electrical contractors find themselves being sued over? The industry seems rife with opportunity for an unscrupulous person (lawyer or not) to drum up something to cash-in on an unsuspecting electrical contractor. I have had a theory for quite a few years now that the children of electrical contractors become lawyers at a high percentage rate.

I've never been sued or even threatened to be sued. It's unlikely I would burn someone's house down. I always tell people upfront what they will be paying. I don't charge their credit cards except to pay their invoice. The most likely scenario for me to be sued would be a vehicle accident, but I carry a lot of insurance, so a major disaster would have to occur.

Actually, It's most likely I would be suing a client for non-payment.

 

[cdslotz]

In no particular order....
Don't put a firm fixed price because of change orders, site conditions, material prices, give an estimate
Material delivered to site is owner or GC's responsibility
Note about change orders being extra, customer and electrician must sign, give your price for them like the hourly rate plus material with mark-up (give the % of mark-up)
Break down of payment schedule, example: % on start, % on rough-in, % or amount for service release, % on final

These are some of what is on my contracts. Others can chime in with their thoughts.

What do you mean "material delivered to site is GC responsibility"? Are you talking about large jobs where you have stored materials in a trailer or pod?.....if so, yes GC is responsible. If you mean materials delivered to the site, but not installed, no. After installed...yes

 

[Little Bill]

Sometimes a GC (or customer) will tell you that the building is ready for me to do a certain thing. I get there and it is not ready. Things that are too many/bulky for me to haul so I have them delivered. The SH won't take them back and reschedule. some body has to be responsible for them. Obviously not wire, but things like 100+ can lights, transfer switches, conduit, etc.

 

[brantmacga]

Speaking of lawyers, what are common reasons that electrical contractors find themselves being sued over?

Mostly auto accidents oddly enough. And worksite injuries, but not from employees, from people claiming they came into the job site and were injured.

I have had a theory for quite a few years now that the children of electrical contractors become lawyers at a high percentage rate.

My son intends to go to Yale law school. He’s actually going to Georgia tech first for an engineering degree, then law school. He said undergrad stem degrees have the highest acceptance rate at Yale.


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[Ravenvalor]

Mostly auto accidents oddly enough. And worksite injuries, but not from employees, from people claiming they came into the job site and were injured.

I can picture someone tripping over any number of items (conduit, power cords, tools, material) strewn about on a site.

 

[synchro]

My son intends to go to Yale law school. He’s actually going to Georgia tech first for an engineering degree, then law school. He said undergrad stem degrees have the highest acceptance rate at Yale.

Having an engineering degree would be a good fit for patent law. A lot of companies require an engineering degree for the patent lawyers that they have on staff.

 

[brantmacga]

Having an engineering degree would be a good fit for patent law. A lot of companies require an engineering degree for the patent lawyers that they have on staff.

Good to know.

He has a keen interest in politics and law making.


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[mikeames]

Having an engineering degree would be a good fit for patent law. A lot of companies require an engineering degree for the patent lawyers that they have on staff.

My father in law was a personal injury attorney and said exactly this. They are very much in demand. It takes hard skills not just a law degree which so many have.