wording of contracts

Status
Not open for further replies.
S

sparky 134

Senior Member
Location
Joliet, IL
i am a new contractor and i need to create a contract for my first job. i would like some input as to what verbiage should be included in the contract. has anybody left something out which caused a problem later ? does anyone use a commercially available computer program to create a contract ?

thanks,
bill
 
Re: wording of contracts

When I was in business I had in my contracts:
A "right to stop work" line if not paid as agreed.
Forget a "late payment percentage" it's usually not enough to get a rise from someone with a smaller bill. Instead have a "Rebilling Fee" monthly of at least $25. It will build up fast and makes it worth going to court over. I've had it hold up in court! Just make sure it's printed on EVERYTHING. Whenever I demanded a down payment, I always said it was for material, and would have the material delivered to the site. They then know the money did go for their job.
 
Re: wording of contracts

The back of our contract (which is 8-1/2x14 legal size) is covered with terms and conditions in 8 point type. On the front, above where we both sign is the line in bold type "Customer's signature acknowledges that customer has read and accepts each of the terms and conditions on the front, back and any addendums attached to this agreement."

The terms and conditions on the back detail everything related to the contract including when the contract begins, payments and when due, our and the customer's responsibilities, allowed remedies in case of problems, warranty and limitation of liability.

This has been developed over a period of years and has been edited by our lawyer. I would make this boiler plate on all contracts. Your contract should be as complete as possible- meaning that it covers all possible circumstances and leaves nothing to interpretation or assumption. That way when there is a problem you can point to the contract, show them where whatever it is is covered and say you signed it!

-Hal
 
Re: wording of contracts

i knew a mechanical contractor who listed items on a separate page which he included as part of his contract. as a problem, like "secured parking", arose he would include it in this list. i read the list and about 90 per cent of the items were things i payed for many times during my business days! it worked good for him!
 
Re: wording of contracts

Since I live on top of a lava rock I have always added the line Excavation, paving, and backfill not included. I let the G.C. handle the trenching. If there is any part of the job you do not want to find yourself doing, then simply exclude it. Here is another- We will not be responsible for any existing defective, or existing inadequately installed wiring at this
_______ dwelling,building,etc fill in the blank. If any repairs or upgrade work becomes required in the course of our installation, then that work will be performed at extra agreed upon cost to the customer, prior to doing any extra work.
 
Re: wording of contracts

Originally posted by wolfman56:
Whenever I demanded a down payment, I always said it was for material, and would have the material delivered to the site. They then know the money did go for their job.
Click to expand...
I use to do it this way also, however, I learned a very valuable reason why I shouldn't from my CPA. In the event of contractual default, the only component of the job that is deductable are actual costs not labor. Therefore, I would always get the downpayment for labor. If the client defaulted then I could declare deductable losses on the material and filing, etc. The IRS explains it this way- labor costs could be contrived, but actual out-of-pocket costs are just that and fully deductable. Plan your job in phases, never put all the material on the job at one time, the didvidend of doing this is obvious; whatever stays in your storeroom can be used for another job in the event of default.
 
Re: wording of contracts

as you do more contracts, you get better & learn what p's and q's yo cover.
be through, cover all your bases. we always had an exclusion page to detail what was not our responsibility
 
Re: wording of contracts

MegaWire,
I really like that concept. I'm printing you're post and showing it to my employer.
RAW
 
Re: wording of contracts

the best line i added to my contracts states that all installed material belongs to a 1 electric until paid for and can be removed if not paid for according to the terms of this contract. when you tell the customer your removing it, a check mysteriously appears!
 
Status
Not open for further replies.
Top