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I’m trying to put a “standard contract” together, and it seems like a common practice to have one page or so of “Terms and Conditions” and a seperate letter that covers “scope of work” and “payment schedule” for each specific job.
I’m thinking there might be others besides me who could benefit from seeing just what clauses you folks include in your “Terms and Conditions”. AND, I’m trying to make sure I’ve considered as many clauses as possible, before I type this thing up.
So how about it? How about naming ONE clause at a time, and then if anyone has a question about that particular clause, they could ask for specifics. I bet we can get a pretty comprehensive list of clauses, and include a lot of different folk’s ideas. Thanks – Jim
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I have a two page contract (or one page double sided) with about fifteen clauses, and an additional more comprehensive set of terms and conditions I can attach for bigger things with thirty seven clauses (and I need to add three to it).
here's one (remeber, Can. law). Severability of contract. Any terms of this agreement that are found to be unenforceable are severable and shall not affect the enforcibility of the remaining terms.
*Okay, Jim. Heres paragraph....... 11.) Before commencement of any work under this contract, the Contractor shall execute a Stipulation Against Liens which can be filed in the Prothonotary’s Office of ____________________________ County.I've noticed a few posts concerning mechanics liens placed against customers homes due to the builder not paying his subs. Its rather simple to file a set of stips at the county courthouse. This also helps the builder by allowing him to fire subcontractors who are not performing work of a 'good and workman like manner according to the trades of today'. Just make sure that when you file the stips that YOU as the builder/contractor/etc are excluded from the stips. This prevents "certain" customers from thinking they can use that last draw to buy new furniture instead of paying you for a job well done.
*per RI law, this stipulation must be included (this is an untested law)""A LIEN may be filed in acordance with the RI Mechanic's Lien Act if payment is not made.""that's printed across the bottom of my 1-page Proposal, which when signed by both parties, and the deposit check clears the 3-day right of recission, becomes the entire AGREEMENT.This form of Agreement is the one we do 90% of our work under.For new construction i would use a multi- page contract. But we haven't built a house in awhile... I can expand the 1-page by using ATTACHMENTS, such as plans, and additional specifications.. and i use a different one for DESIGN work.
*Jim, I don't know if this will help. It's a large contract I created about 2-1/2 years ago for larger jobs. Came up with it when I was still with Tom & Pete, and since it's the original, it still might have a few typos. You can view the sections you're interested in. It's in PDF format.
*Or try this in Word 97 for PCs.
*Adrian - what would be an example of an "unenforcable" term?
*Sonny - I thought about asking someone to post their contract for us to pick apart and disect, but then thought maybe we'd get virtually the same input from many folks, instead of alot of input from a few. How about posting ONE clause, then, after a day or so, if things slow down, post another? Fair enough?
*OK, here's all of the section headings and a cuple of sectionsl Contents pagell Contract componentslll Project and Scope DescriptionlV Specification of MaterialsV Drawings and/or PlansVl Subcontractor ListVll Existing ConditionsVlll Working Days & Hours lX AllowancesX Owner Supplied Materials and/or LaborXl Payment Schedules, Terms and ConditionsXll Owner ResponsibilitiesXlll Contractor ResponsibilitiesXlV Hidden, Concealed and Unforeseeable Conditions XV DisastersXVl Addendums, Change Orders and Additional Work AuthorizationsXVll ScheduleXVlll DelaysXlX Debris RemovalXX Clean UpXXl Termination & CancellationXXll Construction Standards and WarrantiesXXlll Declaration of Completed Project XXlV Disclosure StatementXXV ArbitrationXXVl Owner Acceptance of Document Contents Vlll - Working Days & HoursA - Working Days 1. Working days are Monday through Friday. 2. Saturdays and Sundays only with written permission from owner on an as needed basis due to delays to maintain the original schedule. 3. We will not work on any legal holiday unless the holiday does not represent a disruption to the owners schedule such as Presidents day.B - Working Hours 1. Our normal hours are 8:00 AM to 4:30 PM. 2. Occasionally, subcontractors may start work at 7:30 AM 3. With owners permission, we may work later to complete a certain task or operation. IX - AllowancesAs a rule, we hope to have all material selected prior to signing of this contract by both parties.Should the situation occur whereas one or more material items have not been selected by the owner by the date of contract signing, an allowance will be included in the contract for determining the total contract price.Allowance items are shown below. The difference between the allowance amount and the final product selection purchase price including sales tax and delivery charges, if applicable, will be either credited or debited to the total contract price depending on the amount.The difference will be attributed to the final payout amount due at project completion.Allowances are as follows:
*Well, my brother, there you got me. Everything seems fair to me, and it's been vetted by the lawyer (he was the one put in the 'severability' clause), but...? Basically, it gives me a fallback position, I suppose, in case of a bad situation. One good thing about both my contract and terms; I got them from other people in the industry and adapted them, so most of it has been tested under battlefield conditions, instead of starting from scratch.
*Sonny,I'm curious why you would wait until the end of the project to collect allowance overages. That might work on a small job, but if my excavator runs into bad soil conditions when digging the foundation, I'm not going to carry those extras until the house is finished. It would be nice to carry the credit if his bill comes in less, but how often does that happen? :-}I try to collect overages as they occur, even on small jobs. That way they don't pile up into one big bill. John
*JRS - Whoops!. That was changed shortly after it's inception to read as due upon the next scheduled payout. It wasn't very conducive to good business practices. I forgot, this was one of the original drafts. I'd better pull up a current copy from my ZIP cartridge. I don't use this contract any more since my jobs are generally small, but son Tom still does.
*Jim, I'm glad you started this thread. It's a good reason to critique some of our contracts to arrive at a good one with various sections each guy can use and modify for their own type of operation.
*Well if you hire a lawyer to review your document, and he advises adding something, you ought to take his advice, no doubt there. Maybe someone else will know what that's about.
*Michael - I'm a little confused by that term "Stipulation Against Liens". Would you mind giving an example of what that does, and how it might be worded?
*Yeah, dialogue is a powerful tool, huh?
*As I understand it, if for some reason, a judge finds that there's a single clause in your contract that's illegal. Maybe you charge too high an interest rate. Then he can invalidate the whole contract. If you have this clause, maybe he won't.
*Ryan and all...I have sevarbility in one of my contracts and talking with my real estate lawyer, he said that it is automatic and does not have to be actually written into a contract...as is much that people write into a contract....near the stream,ajAnd "time is of the essence is a big no no...for me anyways...too vague...leave the vague out...it's just money to the lawyers to argue about.
*.. i will never sign a contract with "" time is of the essence "" in it....not me...i'll do penalties and lots of other things but not with that clause....
*yeah, that sounds a little scary to me. And besides, "time" isn't of the essence, quality is. Hey, do you guys stipulate that extras will be performed at "so much per hour", or do you just mention change orders and deal with everything you can on a bid basis? I've seen both ways.
*.. jim , i've gotten in more trouble by going ahead ((by the hour )) on Change Orders..it's always""if i had known it was going to cost that much , i never would have done it""now, i try to sit down and figure it, add my OH & Profit, write up the change order and sit down and go thru it .. if they sign.. great.. if they don't ... great.. no tears!
*yeah, usually it's pretty specific. I think I'm leaning towards bidding them from now on. In fact, both situations happened on this job I'm just finishing up, and sure enough, he was mildly surprised at what the t+m extra turned out to cost and no problem with the quoted price extra. I think I'm starting to convert Mike.
*Folks,Bear in mind, litigators _love_ it when non-lawyers draft their own contracts without review by a business lawyer, it's a great source of business for the litgators. (Also note, most lawyers are deal makers, but all you hear about are the ligators, a small percentage of the field - it's kind of tough to do high TV drama of someone sitting behind a desk redrafting clause 14(A)(2)(b).001 for the third time)One last thing: laws vary from state to state, sverability clauses might not be necessary in some, but unless your lawyer tells you it ain't necessary in your state ....Bob
*I keep forgetting to throw this tidbit out. A contractor once told me that he adds this caveat in with "change order" clauses: "All change orders will be paid in full upon signing."Since I don't do retail sales, I don't have lengthy contracts. But this idea seems perfect for change orders. The client will not have the ability to hold out huges sums of change order money at the end. Remember, the original payment schedule was based on a set of criteria that fit your finacial conditions. Adding 10 or 20% (or more) of final payment money can really get your financial situation in a bind, unless you've anticipated that amount.I like the idea of getting those "extras" payed for up front and then there's no haggling aboutthem later.blue
*You're spot on there, blue. That's one sentence that I see in most of the contracts folks have sent me that I'm gonna use, for sure.
*I don't know if I have the "juevos" to ask a customer to pay in full before work is started. Special order, non returnable materials, I ask for payment in advance. But how many of you would ask for full payment of something before it is completed or even started? Would you ever pay a sub, in full, before the work is started? I don't think so.John
*Good point Jon. What about something like "all changes will be paid for at the next scheduled payment" or something like that? Does that seem too aggressive to you?
*COD....That is very common....and I think fair.near the stream,aj
*My contract says that payments are due when change order is singned. However, at the bottom of my change orders I can check a box for "paid check", "paid cash" or "cost of this order due with next scheduled payment".Of the change is a light fixture or a load of sand, I'll wait. If the change is a larger item where I don't have an account, I'll get the money now.
*What else does your change order say Ryan? Did you draft your own document for that?
*I'd post a pic but you'd never be able to read a jpeg and I made it on publisher and most won't be able to read it.Yes, I made mine myself but stole alot from many others I've seen.Top says "Change Order with co. name, address, number, etc.Under that I can check a box for 1)"Change in contract specs", 2) "Additional work", or 3) other with a fill in line.Below that is a place for owners info, name address, contract no, etc.And below that just the simple "You are authorized to do the following work, terms and conditions are the same as thosee on original contract, payments made as outlined below" and you fill in the description in a box.Below that is the cost of order, line for sales tax (w/ another check box for capital improvements which are tax free), and a total cost line.Then I check either 1) paid by check #_____., 2) PAid Cash amt. ______, or 3) Amt. due with next progress payment.Below that goes signatures and a "please make checks payable to Cruzan Construction, thank you for your business" line.Like all my forms, it's had 20 revisions and I print only a dozen at a time. I bought a ream of carbonless copy paper and I make up my own forms. Someday I'll have all my forms perfected (never) and I'll actually have them printed at a printer but for now, a lazer printer makes them look like they were.It's simple but I don't do 50K additions. My biggest project this year was only 23K. And that's big for me. Most of my work is 3-5K so this works for my little projects.
*Ryan....you're almost worth your weight in gold...Are you saying there is carbonless paper I can buy at Staples that I can run thru my printer and then fill out at offsite in duplicate?...Calling Staples as I type...And I like the check offs...It's going in my form soon.near the stream always learning,aj
*You know it's the one yellow, one pink, one white sheet all together. Actually you can get it with only two, or up to 5 sheets. You know, the stuff the real companies use. I don't know if staples has any but I bought it right from my printer. I was getting something printed and asked if they sell reams of NCR paper. I bought one for $15, probably ripped off but who cares, I needed the stuff.I don't know if I'm worth my weight in gold, that would be alot of gold!!!!If you're really interested in seeing the form, e-mail me. I can do something with it to make it legable.I actually just recently switched a couple of my forms to NCR. My wife used to do all the paperwork but now, with my daughter taking her time. I had to find a simpler way. Now I invoice when the job is done from my truck and get the check that day instead of sending a bill like I used to do.
*Ryan...How are you printing out the form...from your computer's printer? How would it print the second and third sheets?near the stream,aj
*The stuff comes already colated (as bad as I spell, I won't even try that one.) You know, already in order of white, yellow, pink. I print it just that way. So for each three page form, I've gotta print three separate times. So for 10 forms, I print 30 pages.I also got a pack of cardboard sheets to act as the back of the pads and bought a quart of "padding compound". This is the stuff sticky rubber stuff that glues all the sheets together. So If I want to make up 10 forms, I print 10white, 10yellow, and 10 pink forms. Put that piece of cardboard behind them, take them to the shop where I lay something heavy on them and paint this padding compound on the top edge.It's a pain in the @$$ and once I've got forms I like, I'll actually have them made up at the printer but they're not field tested enough for me to stop tweaking them yet.
*Ryan, Boy, did you bring back some great memories from my college days. I took a Graphic Arts class (print shop). We made note pads using that padding compound. There were some ancient machines in that class (21 yrs. ago-before desktop publishing). Some of the machines were from Pre world war days, WWI, that is. Including a shear for blocking those notepads after we glued them up. You didn't want to get your fingers near that blade.We handset type that was organized in scores of typset drawers. When we made business cards, we used this old press that when it popped up, you had to remove the freshly printed card, and slip in a new card blank before it came down again. It looked like something out of a Charles Dickens novel.That was one fun class!John
*Payment for each change order under $1,000. shall be due upon completion of the change order work by submission of an invoice from Contractor to Owner, which invoice shall be due upon receipt. For change orders, the cost which exceeds $1,000., one-half (1/2) of the amount of the cost of the change order work shall be due upon execution of the change order and the balance of the cost of the Work required by the change order shall be due upon completion of the change order work and submission of an invoice, said invoice to be due upon receipt by Owner.
*decent. Clearly written. Fair. Reasonable. I like that.
*Remodeler Extraordinaire...Very nice words...near the stream updating daily,aj
*Here's one or two for ya...Concealed Conditions and Additional Work:I. Concealed Conditions: This Agreement is based solely on the observations that Contractor was able to make with the structure in its current condition at the time this agreement was bid. If additional concealed conditions are discovered once work has commenced, which were not visible at the time this proposal was bid, Contractor will stop all work immediately and point out these unforeseen conditions to owner. Contractor will then issue a Change Order/Add Work Order for any additional work required BEFORE any work involving extra materials or extra monies is started. II. Payment of change Orders/Add Work Orders: Payment for each Change Order/Add Work Order is due upon completion of Change Order/Add Work Order and submittal of invoice by Contractor. Just a few to look over...James DuHamel
*Yeah, that "concealed conditions" is in just about all the ones I've seen James. That's good, clear wording you use too. I think that one is real important, especially for remodeling.How's life treatin' you?
*James--The concealed conditions clause is a must. Even on small jobs (as small as 1-2 days), when I give my estimate (usually work t&m on these) I include a line or two on unforseeables. I clearly lay out the work that is to be performed and then state that additional charges may be included for unforseen problems (i.e. rotten window framing, insufficient framing, etc.) per customer approval. The example problems may change from job to job. For these small jobs, I often do not use a contract, but still think it important to have the client know that I don't always know what will be found behind door #1. On a contract, absolutely!Like you, I stop work, inform the client of the problem, and get a final decision from them before proceeding. Verbal approval ok for the little jobs. Change order on the bigger contract jobs.Later. LJ
*Jim--Didn't see you there. Sorry, almost stepped on your toes. LJ
*Concerning the payment schedule."Final payment of $00000.0000 due upon completion of SCOPE of WORK." NOT due upon completion, or subject to approval, or any other circumstance.My Scope of Work is basically an S.C.A. that you can read about on the R.O. site. A matter of semantics.It, the Scope of Work, MUST be COMPLETE and totally Unambigious! Detail is extremely important. Bill EnsleyP.S. Don't bother taking the time to draw them up unless you're getting paid for it.
*No sweat Little Joe. Glad to see you chip in. The more opinions and ideas the better, that's my motto. What else you got?
*What about customer supplied materials? This has always been a concern of mine and is something that is discussed with the client before each new project starts. For me, it boils down to something like this: I tell them that if they are set on supplying material(s) that I will use/install them -- correctly -- but cannot always vouch for the quality or integrity of said products. Such as nasty lumber from Menard's, or ugly, warped, twisted, wracked, moulding from The Depot.Is it legal, if not moral, to refuse to warantee my work done with products that I do not supply or feel are inferior? Or would it be a case of "you still chose to use it, therefore you are liable?" This is not so good for customer relations, I know, but this is something that seems to arise fairly frequently.Haven't come up with a good way to word this concern into a contract yet. Actually saw an article in the latest jlc (sorry Taunton) about this, but am looking for some other input. Can dig out some of the good points from the article to chew on if needed.Must be late, I'm rambling.Later. LJ
*Unless the customer has something I can't get like a light fixture from Egypt or their grandmother's kitchen sink, I will not let the customer provide materials. The only reason it's ever come up is they hope to save some money by not paying my markup.I'm completely honest with them. I tell them that I need to make a certain amount of money everyday. If they provide materials or if I do, it's still gonna cost them the same. If I provide materials and the load is two sheets of plywood short, It's my problem. If they provide materials, they'll have to leave work, rent a truck, and get me the missing plywood when I need it or there will be extra charges for work delays. If they order the wrong door, or they order the right one and the wrong one shows up...it's their problem to get it right when I need it and that may mean driving all over three counties to see who has the right door. If I order the door. I do the driving all day, it's my problem. I buy alot of stuff from my suppliers. If I have a problem, they take care of it immediately. If you have a problem, They'll take care of you after they're finished taking care of all their contractors.It's easier and less expensive to just let me do what I know how to do and then they don't have to worry the details. They can just put the project on my shoulders and not have to spend their time working on the project.
*bill...look up ""Substantial Completion""you say..((It, the Scope of Work, MUST be COMPLETE and totally Unambigious! Detail is extremely important. ))..but if that is the only wording in your contract, you can get hung up for a door knowb on a $50,000 bedroom....if they have the use of the work for the use it was intended..then it is substantially complete..and you should be entitled to payment..i suspect , with your wording, it's just like being pregnant.. wither you are, or you arn't..your wording , meant to be explicit, is too inflexible for construction.....as far as customer supplied materials... i'm with ryan..sometimes customers call me up and say they've already bought something, or ordered something, ad i will make an exception.. but for the most part, i do and say just what ryan described.....b but hey, whadda i no ?b but hey, whadda i
*This is what I have regarding materials - "Materials - ASW Co. will supply all materials for this job. All materials left onsite will remain property of ASW Co. and any left over after job is completed will be disposed of at the discretion of ASW Co.Any exceptions to this clause will be in writing, and there will be no warranty on any materials supplied by buyer, during installation, or after."
*Mike, I understand where you're coming from. My payment schedule is very aggresive. Usually, after a job that let's say is $10,000 the final payment due to me will be 12-13 hundred. I've been questioned on it but I polietly let them know that's how it is.I agree wholeheartedly with Ryan concerning client supplied material. That's what I used to do but ran into so many headaches I turn down jobs where the client wants to supply material. Just not worth it.
*Here's the text of our contract concerning completion: XXIII - Declaration of Completed ProjectA - Substantial Completion1. A project is considered "substantially completed" when it becomes usable for it's intended use by the owners. Acknowledged is the fact that a few minor items may still have to be performed or completed but that those items do not constitute prevention of intended use by the owners. a. This day/date will be determined by contractor and owner walking though the project. b. Any agreed upon minor items remaining to be accomplished will be written on paper and owner and contractor will each receive a copy. c. At this same meeting, an agreed upon date will be established to have all of the noted items completed, and that date will be noted on the same list. B - Declaration of Completion 1. A project is "declared complete" when any minor remaining items have been completed. The final payment of 5% of the total contract price will become due and payable within three days of the date of Declaration of Completion.
*nice, Sonny. succinct.
*I use the term "substantial workmanlike completion" too Mike. I don't wan't anyone thinking they can hold up a final payment because a drywall nail pops out. And I also include a 1 1/2% per month interest fee. The fee starts ticking the moment the payment is due after the "substantial workmanlike completion" occurs.Good point Mike!blue
*7. OWNER SUPPLIED MATERIALS AND/OR LABORAll Owner supplied materials and/or labor will be exempt from any guarantee of the Contractor and may void the warranty of related work or products. The Owner is responsible to have these materials or labor delivered to the job site at the time and location required by the Contractor. Owner will pay the Contractor for any additional costs incurred in handling, storing, assembling, or fitting these materials to the Contractors’ materials and work. Should owner supplied material be determined to be defective prior to, during, or after installation, Owner will pay all costs of finding replacement or repair parts and the costs of removing, disassembling, reassembling and reinstalling the product and associated items.Owner will hold the Contractor harmless for any delays caused by Owner supplied materials or labor.
*I like to keep it short and simple. For about ten years, knock on wood, the following general terms and conditions appear at the bottom of all my cabinetmaking contracts.On their side, I tell them:"All of the above work to be completed in a substantial and workmanlike manner for the Sum of:"And then I tell them how much it'll cost, and when I'll bill them for progress payments (milestones). Then, on my side, I tell them:"Each progress payment shall be paid for within seven days of invoicing; and this contract shall be paid in full within seven days of substantial completion of work described in Section I, above. Extra work is any addition, alteration or deviation from the above, Section I, specifications and will become an extra charge over the Sum in this Section. A signed "Change Order" is required before work can begin on any extra jobs estimated to exceed $700. A verbal Change Order is sufficient for jobs expected to cost less than $700. Charges for extras shall include time for estimating, writing change orders, and design, and all work will be charged at my cost for material and for labor at $85 per hour. Extras shall be paid for within seven days of receipt of invoice or according to accompanying Change Orders.Late payment for contracted or extra work will result in a 1½ % per month finance charge on unpaid balances."Of course, Section I of my contract contains terms and conditions that are specific to that individual contract, but my standard form contains most of the boilerplate (permits, pulls, or what I do and don't do and supply).You know, I got a lot of this stuff from David Gerstel's book, A BUILDER'S GUIDE TO RUNNING A SUCCESSFUL CONSTRUCTION COMPANY. It's published by Taunton. And then a lot is my own, developed after experimenting, such as the wording about change orders. It works, so I don't mess with it.
*Hey Jim!Life's been a very, very large blast lately! Ny Dad is actually improving, and his outlook is improving too. This is like lifting a great boulder from my shoulders! I also took on a side job for a few hours each morning. Most fun I think I have ever had. I teach a computer lab at a local school. My classes are for 5 year olds up to 6th grade. Man, kids are great, ain't they!TRhanks for asking, and in case I forgot, thank you very, very much for the entire t-shirt ordeal. Your generosity will never be forgotten. You are a vewry fine person.James DuHamel
*Boy, I seem to bill out my jobs a little different than most of you. It works for me, so I think I'll stick to it.I bill out in stages. For a bath remodel, each stage is listed kinda like a separate job. Demo is one stage, and I bill for completion of demo when I have gutted the room. I expect to get paid right then and there. My contracts specify payment schedules, and the customer knows exactly when to expect to get billed, and how much it will cost. If I don't get billed for stage 1, I don't start stage 2 until I do. Never had a problem yet. After I do the plumbing, electrical, or any other "in the wall" work, I bill for that. Installation and taping/floating of drywall gets billed. And so on, and so forth. Each project is a little different, but I gotta protect myself from getting nailed on non payment. If I do get nailed, I keep it as small as possible. On small jobs, I bill after completion, and inspection by homeowner of work performed.As far as customer supplied materials, I have a clasue that tells the customer that I only guarantee that the materials will be installed according to manufacturers specifications. Any problems with the materials falls solely on the shoulders of the homeowner. I let them know that they are paying me to install the materials only. If the materials have a defect or problem that rewuires the material to be removed and redone, then they will have to pay me to remove the damaged materials, and pay me to install the replacement materials. I let them know that this cost will most definitely FAR exceed any savings that they are hoping to achieve by supplying the materials themselves. I also do not return damaged materials (I have had MANY ask, since I "was going that way anyway") and I do not warranty ANYTHING except installation. I have a pre work session with my clients to let them know what to expect while the work is going on. One of our topics is why contractors charge mark up, and how much trouble it could turn out to be if the customer wants to supply common building materials. Nine times out of ten, the customer lets me go ahead and take care of materials, and pays me the mark up. The key, I think, is informing the customer. Most just do not realize what all is actually involved in supplying the materials. After a few attempts to get the materials right, most will give up and let ya do it anyway. just a thought...James DuHamel
*>After a few attempts to get the materials right, most will give up and let ya do it anyway. That's fine as far as it sounds. Hopefully they figured that out BEFORE you start the job so you don't end up eating additional consulting time to help them make up their list, quality control time to check everything out when they bring it on site and the labor downtime while your crew (of one or many) waits for that $ .50 connector or fastener you need to finish up and comes "standard" with the parts you would have supplied --- even though you went over all this verbally before you started. We used to just go over this verbally with the customer until one had a "leak in our plumbing hookup" on the dishwasher he supplied. Turns out there was a crack in the liner in the dishwasher. Of course we were blamed for improperly handling the product and damaging it even though the extent of our "handling" was to move it across the kitchen and into the cabinet opening and then hook it up. In this case it only cost us 2 additional plumbing trips and a few hours ($$$) of administrative/sales time to coordinate the return and replacement of the dishwasher.Now I like to go over it verbally when the situation calls for it AND have the game rules on paper so we can refer back to them later -- and just in case this is an afterthought (change order) we didn't discuss earlier, the rules are right there. I have found that having these things written into the contract often prompts the customer to ask some things we may not have already discussed thoroughly, and gives me the basis to discuss them from, because at that point I am not making up the rules, I am simply explaining them.
*Here's how I handle owner material or labor. The part about his labor not being done as an employee of mine came up during litigation from some leaze who tried to blame a GC when he (the owner) got hurt doing his own thing as part of the project. Tell ya, they seem to come up with a new trick every year! X - Owner Supplied Materials and/or LaborA - Materials supplied by the owner often create scheduling and guarantee problems and are therefore generally frowned upon in our industry. Should you elect to supply materials, they will be exempt from our guarantee and may, at our discretion, void the guarantee of related work if failure occurs. All owner supplied material is expected to be furnished on date required by contractor and fully assembled, otherwise you will be charged for assembly labor unless otherwise stated in this contract. Should owner supplied material be determined to be defective prior to or after installation, owner will be charged for any time wasted by our employees or subcontractors and their employees if they have to wait for your procurement of a replacement unit or parts of the defective unit.B - Labor supplied by the owner will be subject to the same conditions as stated above for owner supplied material. In addition, should work to be performed by the owner cause delays in the work we or our subcontractors are to perform as part of this contract, you may, at our discretion, be charged for the time if we or the subcontractors cannot work on another project elsewhere for any reason. 1. If owner supplies his/her own labor, owner is not to be considered an employee of general contractor or his sub-contractors and as such, is not covered by either workers compensation or liability insurance. Therefore, owner is acting on his/her own and is not acting under the direction or control of the contractor, or responsible to the general or sub contractors.C - Delays caused by the above will be added to the allowable schedule and owner will hold contractor harmless for those delays.
*this has been interesting especially recently and the clause on owner supplied materials. We did a kitchen remodel for some people who supplied a lot of the materials. Recently they filed a complaint on me not taking care of cheap matrerials supplied for job and found to be not of the quality they wanted.Guess whaty materails they are unhappy with, not mine. Guess who now has a black mark against them with the registration board, me. the claim was rejected but it stays on file.........some of this cheap owner supplied home depot crap is driving me crazy.
*Josh, don't worry about it. Sometimes a file on record can be a positive. In Michigan I had a complaint against me because after we tore off a roof and installed new fiberglass shingles, the roof leaked (ice daming), and I refused to do anything about it, so she wrote to the Contractor's Board. They contacted me for my response so I sent them a copy of the contract. The contract stated that she only had 3-1/2 inches of fiberglass insulation in the attic and only two 16" x 12" gable end vents - one at each end. The contract stated that I strongly suggested upgrading the insulation, installation of Ice & Water Shield and a ridge vent in combination with soffit vents to eliminate her existing, and future damage from rain water due to ice daming - all as options. It even mentioned the recommendations of FHA for proper attic ventilation. Her refusal of every option was on the contract.The upside: Her claim was also rejected, but at least, by reviewing my contract, the Contractor's Board knew that I knew how to install roofing and the ramifications of ice daming and inadequate attic ventalition.Don't worry any sleep over it. Just keep that file for ever.
*How about a "no civilians in the work area" clause? I built a garage on slab for a customer with a very active 10 year old a few years ago. Every time I turned around, that kid was gettin' underfoot. I realized the danger one day when I went inside and grabbed a 10 foot step ladder that was snaked up through the bottom chord of the trusses - I quick grabbed it and pulled the bottom out to carry it outside, just as I heard a little "yelp" and looked up to see her up among the trusses. Can you imagune if she had been, say, on the next to top rung and had fallen onto that slab? So I put a "no civilians in the work area" clause in my contract, and jobs on a handshake, I make the dangers clear to the owner. Probably still need to get something in writing though.
*right off my terms and conditions "#15. Owner agrees to keep all persons and pets out of the construction area at all times."Wrote this after the customer's annoying dog tore down my drywall tape two nights in a row.
*you guys are funny... had to laugh...our last job had a chicken.. kept beggin for donuts at coffee break...good old ""woody"" .. had to feel sorry for woody.. she was truamatized... seems she had a sibling.. and they had a little house in the yard.. but one night the racoons came in and dragged woody's sister out by the neck...woody ain't been quite the same since.......i lost more donuts to that chicken....but the pre-construction conference definitely INCLUDED woody...so .. i would have had to strike that clause...
*That's a real cute story, Mike. Apparently woody is more than just a chicken. Mascot comes to mind - did you get her a scarf with your company logo to wear ?Hey, there's an exception to almost every rule. No need to re-write the rule book, just make that exception if you REALLY feel it is necessary from time to time.... Course, someone would have been very unhappy had anything happened to the poor little thing.
*How about a clause that protects you if you uncover hazardous materials like lead, or asbestos when you get into the job? You guys have a clause for that? You know, by law, if the building was built before 1976 (?) you have to provide them with the government "Lead Hazard" brochure. You have a clause that states you did that?
*Along with that Lead Hazard booklet there is a form that you must get the customer to sign saying they got the message. You have to keep that signed form for three years.
*10. HAZARDOUS MATERIALS:Owner agrees to pay for all costs incurred in identifying, testing for, handling, containment, and disposal of hazardous materials found at the job site, including but not limited to lead, lead paints, solvents, and asbestos. Upon notification of the presence of hazardous materials, the Contractor will immediately stop work in that area and notify the Owner. Work will resume according to a new work schedule after the problem has been properly corrected.We have a separate form for the lead disclosure pamphlet essentially duplicating the language recommended in the requirements stating:DATECUSTOMER NAMEADDRESSADDRESSPHONE NO.JOB NAME/NUMBER:I have received a copy of the pamphlet, Protect Your Family From Lead In Your Home, informing me of the potential risk of lead hazard exposure from renovation activity to be performed in my dwelling unit. I received this pamphlet before the work began.Homeowner__________________________Homeowner___________________________Date_________________ Interesting. I just went hunting for the requirements and they must be buried pretty good on the EPA site now. At least that's where I thought I found them before. Found the pamphlet (PDF) over there, but didn't see the guidelines. I thought the magic year was 1978.
*I know I'm supposed to use the lead booklet and did once...when it was brand new and fancy.I can't comply with all the laws, there are just too many. If I took the time to do everything all the government agencies wanted me to do , I'd never get any work done. So, I've decided to just follow the laws that make sense. (Unless you're with the EPA, then I gladly follow every single rule that you have graciously handed down to us little people to make our lives just a little more wonderful. Thank you for all you do...save the whales!!!)As to hazzardous materials, my contract lets me walk away as soon as they're discovered. Never had to use it but I'll renegotiate with a new contract for the hazzard or let the home owner find someone else. Again, it's an area with too much red tape. Personally I wouldn't mind puttng on a respirator and tearing out the asbestos myself. I'm not alergic to asbestos. But I think they cut off your hands and make you live with lepers if they catch you. 20. Contractor may stop work immediately if hazardous materials or conditions are found and will be paid for work completed plus a reasonable profit. Owner will be solely responsible for removal of such hazard unless otherwise provided for in this contract.
*Terms* Unless explicitly stated in each specification under “Description” above, quotation doesnot include caulking, filling, priming, sanding or painting or any work pertaining to paintpreparation.*Sight unseen problems discovered after work has started and not readily apparent at theestimating survey will be quoted on a Change Order. Examples include poor workmanshipby others that impedes current work, pipes and electrical wire hidden behind sheetrock orrotten timbers not visible at the estimating survey. These are common examples, thoughnot the only ones. The Change Order may be either a fixed quotation or a Cost+quotation.*Cost+ quotation means all work performed under Cost+ conditions will be billed to youat a rate of $50.00 per hour and all material and all subs as well as other miscellaneousexpenses will be billed to you with a 33% return to me over and above costs. Travel topickup material or other items connected to your project will include a mileage charge of.32 per mile. ________________________________________________________________________WE AGREE, hereby, to items stated above at this price:________________________________________________________________________AUTHORIZED SIGNATURE: DATE:ACCEPTED: The above prices and specifications of this Agreement are satisfactory andare hereby accepted. All work to be performed under same terms and conditions asspecified unless otherwise stipulated in a written Change Order. Payment to be madeupon completion of work or by Draw Schedule, if stated above. . SIGNED: DATE:
*b GUARANTEELatley I have been encountering situations where customers are asking to see some type of written guarantee. Usually I am able, through my references etc... to assure them that I stand behind my work for a reasonable period of time. Can anyone give me some insight as to what they provide to customers to satisfy this requirement? Thanks a lot.
*Matt - we discussed that very issue at length, maybe in the past year. If you scroll down through the threads in this section you'll find it. - Jim
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I'm trying to put a "standard contract" together, and it seems like a common practice to have one page or so of "Terms and Conditions" and a seperate letter that covers "scope of work" and "payment schedule" for each specific job.
I'm thinking there might be others besides me who could benefit from seeing just what clauses you folks include in your "Terms and Conditions". AND, I'm trying to make sure I've considered as many clauses as possible, before I type this thing up.
So how about it? How about naming ONE clause at a time, and then if anyone has a question about that particular clause, they could ask for specifics. I bet we can get a pretty comprehensive list of clauses, and include a lot of different folk's ideas. Thanks - Jim