I was wondering if anyone had any samples of service contracts and proposals that I could tailor to my own use. I have been doing work with just written estimates or a handshake for about three years and until recently never had a problem. I got my first check returned from a customer for "insufficient funds" and it has shaken my confidence in my fellow man. I plan on using service agreements for most of the larger jobs in the future.
I asked my lawyer for a form when I went into business, and he got me a standard form from an office supply. They are called "Contract Proposals". I use a slightly modified form from my PC now. I also have a "Time and Materials Agreement" for those jobs, so I'm always getting an autogragh when I get a new customer.
As for the insufficient funds check, here in Illinois you can sue for TRIPLE the check if they don't make good on it in 30 days. If it's a stop-payment, that's another matter. A word to the wise, I've hung onto those insufficient-funds checks for a few months, then redeposited them, much to the surprise of the deadbeat (when it cleared).
Dave
I have a big folder full of contractor forms in Word, Excel and several other formats. I got it from a generous fellow on another forum. I can send it to you via e-mail or IM file transfer. Write back or e-mail if you are interested.
Speedy,
I would like to get a copy of those forms if you don't mind.
Thanks,
Bill
There looks to be several things in Holt's Proposal that are illegal here in California. You might want to have a lawyer review any forms you get. A couple hundred bucks on the front-end might save lots of legal headaches later.
speedy,
could i get a copy of those forms too?
dmattox - What would be illegal in such a form? A small timer like me cannot afford several hundred dollars to check out the wording of a proposal. I know, how can I afford NOT to, right?
Just curious as to what part may be wrong. I am in NY so it may not apply. I know Ca. is the law/rule/restriction capital of world.
I will have some forms up for a few days. E-mail me and I'll give you directions.
[This message has been edited by Speedy Petey (edited 12-10-2004).]
Speedy Petey, I had the same question for dmattox until I started reading the back of the form. I know the standards for being compliant with Florida construction codes are very high. However, this form has so many exclusions for the contractor on the back it doesn't look like anyone could possibly fault the contractor for poor workmanship, delays, failures of systems or staying within specifications.
I have two concerns with the document:
First is remove of equipment already installed due to lack of payment. It is illegal to do so and I am not sure if you can force the owner to wave his rights.
The noncompete clause also has me a bit concerned, I am not really sure about that one though.
But, I am not a lawyer and I don't think anyone else here is. Spending a couple hundred bucks on forms you will use for years doesn't seem like a huge expense to me.
I use mike holts proposal with modifications for my business. Removing previously installed equipment for non payment is done with a courts permission only.
The non compete clause is to stop those clowns who want to hire your workers to do additional work as a side job. And of course at a much cheaper rate. Then if something goes wrong blame you for not "fully and completly" training them especally when the hire a 1 yr apprentice.
[This message has been edited by nesparky (edited 12-14-2004).]
<quote> First is remove of equipment already installed due to lack of payment. It is illegal to do so and I am not sure if you can force the owner to wave his rights.</quote>
While this is true, I have a way around it. General contractors are a big problem here in California, once they get their wiring, they forget to pay. I will remove anything I've installed like sub panel or what ever. I do it when I recognize a "safety hazard" related to the installation. The GC will make the usual inane threats, but they seem to pay right away.
I just read Holt's suggested contract and I see the remove materials installed or not part, but no mention of "by order of the court." The whole idea of liens is to not have buildings being disassembled due to disputes.. isnt it?
Liens can be a way to get the money owed but they have to be enforced. Usually a lien forces the money to be paid when the property is bieng sold.
If the HO. does not pay and does not sell the place the lien may be on record for many years.
For example an 82 year old friend of mine has had a lien on a house since 1956. Still has not been paid for the job he did back then. Lien plus intrest on lien amount are now worth more than the house. Since the nonpaying home owner has recently passed away the court will probably finally rule on this. That is a very long time to try to collect your money.
Contract language needs to have some sort of clause to force a deadbeat to pay or face serious consequences. If it does not you may not be in a position to be able to go to the courts at all with any chance of winning.