Hello to the group. I am starting up my own electrical company. I plan to be a one man show for at least a while. A lot of my business will be associated with GC's doing basement finishes, kitchen remodels etc. What I am in need of is a standard contract to use with the GC's in these remodels etc.
Would anyone on the list be so kind as to send me a copy of theirs that they use in these instances? I have a contract started, but I am sure I have not thought of everything that could potentially expose me to liablilty.
Any help would be appreciated. I can be reached directly at email@example.com
I would suggest dealing with the HO and NOT the GC...many (or some) may frown on this practice, but in MY experience it is better to get the money directly from the HO - what is your recourse if the GC stops paying you? The HO may have paid the GC for the labor/material you are due, but the GC may withhold payment to YOU. Your beef would be with the GC, not the HO...and if the GC closes up ABC GC and becomes DEF GC you might very well be SOL.
I would be interested in seeing Sparky's contract (subtle hint).Thanks.
Dealing directly with the H.O. is preferable but if you are getting the job thru the GC he/she will not want this to happen for obvious reasons, MONEY. The GC adds a percentage to your price for himself, that's how he makes money.
Now, if you complete the work and the GC does not pay you, your recourse is to install a mechanic's lien against the property. I have verbiage in my contract that states the GC will be liable for all expenses incurred if I have to chase him for my money. One of the GC's I currently do work for would love to see me forgo my contract and just give him a proposal for him to sign and go to work. The problem with this, IMO, is that should he default on paying me, I still would go thru the trouble of installing lien BUT all of the expenses incurred with doing this would come out of my pocket.
I use the same contract regardless of the size of the job. My contract is very fair, IMO, nothing one-sided. It states exactly what work I will be performing, warranty, payment schedule, owner/contract default remedies, persons authorized to sign change orders (learned this from my previous employer. he was doing work for a GC and the field superintendant was signing our change orders w/out any problems. at the end of the job when it came time to figure out the final payout, the GC said he didn't agree to ANY of the change orders and he would not pay for any of them. " The change orders should have been sent to the shop for me to sign, not the field superintendant." Now you go thru the BS of installing a lien on the property.)
So, as a new contractor my advice is to be paranoid. Listen to your gut feelings. If you get the feeling a GC is yanking your chain, be cautious. Many a GC will develop amnesia when it comes time for payment. DO NOT perform any extra's w/out a signed change order. Many a GC will PROMISE to pay you for the extra's and will argue about the price after the job is complete.
When I start a job I discreetly tell the H.O. to make sure they get Final Lien Waivers from the GC for every subcontractor that was involved with the job. It goes a long way to making sure you get paid. No final payment, no Final Waiver, period.
[This message has been edited by sparky 134 (edited 10-24-2005).]
We use contracts for some projects, but my general rule is that if you feel you need a contract, you shouldn't take the job. A good GC will ask you for the bill and pay on the spot, not dodge the bill. These guys are rare, but do exists and you should try to find them and work for them exclusively.