The third prong isn’t neutral.
Neutral – AKA standing still.
The final prong is the power, so start feeding your clients information and they will follow your lead. I know that’s a lot of innuendos’ but keep reading.
The power …
Do you write a contract for every job? You’d be amazed at how many construction business owners don’t “waste their time” writing a contract.
If you’ve gotten by without a contract, chances are you’ll wish you had one sometime. Working without a contract or with a poorly written contract is a major reason that construction businesses fail. All it takes is one bad job without payment and your business will either be playing financial catch-up for years or it will go away.
You need a contract to protect you and to protect your client. I’ve been an expert witness and certified arbitrator for the BBB for years. I’ve seen far too many contractors lose their assets because they didn’t protect themselves in writing.
The first section of your contract should be your proposal. This is where you define who you are and who the client is. Be sure both parties are clearly identified, with names, addresses, phone numbers, email addresses, etc. Include your contractor’s license number if you are required to be licensed.
You need to know who can legally sign the contract. If working with a married couple, can only one person sign the contract or do you need both parties? The answer will vary based on the state you are working in, and it’s a question your attorney can and should answer for you. If you are contracting with a business, make sure you are dealing with the person who has the legal ability to sign a binding contract. Everyone who will be signing the contract should have their full legal name listed in this section.
Then, write a general outline of the work you are going to do. You’ll need enough detail to outline the job. “Bathroom remodel including new cabinets, new floor covering, new appliances and paint.” “Furnish and install materials to build a 14’ x 36’ deck including two stairways, two seats and a handrail on three sides.” Save the intricate details like material selections, make, model, color, etc., for the “work” section of your agreement.
The work section, the legalese, the payment schedule and your signature page will be covered in the next few weeks. Throughout this series, though, I want you to remember one thing – only leave out of your contracts anything that you can afford to pay for out of your own pocket; because you will be on the one paying for it.
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