David,
Congratulations on starting your company and successfully getting things started!
In order to get a contract setup you should go through and find out what exactly you need to do to comply with your state and counties laws. I have seen contractors get a canned contract from the bookstore, put their name on it, get a customer to sign it and still end up legally having no rights to try and recoop expenses when the project lost funding. Unfortunately, even when you try to cover your rear, if you are working on a bad project, a good contract doesn’t make it better. But, you should implement all the necessary steps to ensure you have a legal right to collect for work performed. In practice, hopefully you find that the people you work with regularly will be reasonable when it comes to one trade causing problems for another. I can’t tell you how many times someone else whacks one of our wires at the mid-way point of a long run. It’s going to happen.
Here is a copy of T&C;from an off the shelf contract:
TERMS AND CONDITIONS
1. Changes in the Work. Should the Owner, construction lender, or any public body or inspector direct any modification or addition to the work covered by this contract, the contract price shall be adjusted accordingly. Modification or addition to the work shall be executed only when a Contract Change Order has been signed by both the Owner and the Contractor. The change in the Contract Price caused by such Contract Change Order shall be as agreed to in writing, or if the parties are not in agreement as to the change in Contract Price, the Contractor’s actual cost of all labor, equipment, subcontracts and materials, plus a Contractor’s fee of______% shall be the change in Contract Price. The Contract Change Order may also increase the time within which the contract is to be completed. Contractor shall promptly notify the Owner of (a) subsurface or latent physical conditions at the site differing materially from those indicated in the contract, or (b) unknown physical conditions differing materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this contract. Any expense incurred due to such conditions shall be paid for by the Owner as added work.
2. Owner’s responsibilities. The Owner is responsible to supply water, gas, sewer and electrical utilities unless otherwise agreed to in writing. Electricity and water to the site is necessaIy.
Owner agrees to allow and provide Contractor and his equipment access to the property.
The Owner is responsible for having sufficient funds to comply with this agreement.
This is a cash transaction unless otherwise specified.
The Owner is responsible to remove or protect any personal property and Contractor is not responsible for same or for any carpets, drapes, furniture, driveways, lawns, shrubs, etc.
The Owner will point out and warrant the property lines to Contractor.
3. Delays. Contractor agrees to start and diligently pursue work through to completion, but shall not be responsible for delays for any of the following reasons:
failure of the issuance of all necessary building permits within a reasonable length of time, funding of loans, disbursement of funds into control or escrow, acts of neglect or omission of Owner or Owner’s employees or Owner’s agent, acts of God, stormy or inclement weather, strikes, lockouts, boycotts or other labor union activities, extra work ordered by Owner, acts of public enemy, riots or civil commotion, inability to secure material through regular recognized channels, imposition of Government priority or allocation of materials, failure of Owner to make payments when due; or delays caused by inspection or changes ordered by the inspectors of authorized Governmental bodies, or for acts of independent Contractors, or other causes beyond Contractor’s reasonable control.
4. Plans and Specifications. If plans and specifications are prepared for this job, they shall be attached to and become a part of the Agreement. Contractor will obtain and pay for all required building permits, but Owner will pay assessments and charges required by public bodies and utilities for financing or repaying the cost of sewers, storm drains, water service, other utilities, water hook-up charges and the like.
5. Subcontracts. The Contractor may subcontract portions of this work to properly licensed and qualified subcontractors.
6. Taxes and Assessments. Taxes and assessments of all descriptions will be paid for by Owner.
7. Completion and Occupancy. Owner agrees to sign and record a notice of completion within five days after the project is complete and ready for occupancy. If the project passes final inspection by the public body but
Owner fails to record Notice of Completion, then Owner hereby appoints Contractor as Owner’s agent to sign and record a Notice of Completion on behalf of Owner. This agency is irrevocable and is an agency coupled with an interest. In the event the Owner occupies the project or any part thereof before the Contractor has received all payment due under this contract, such occupancy shall constitute full and unqualified acceptance of all the Contractor’s work by the Owner and the Owner agrees that such occupancy shall be a waiver of any and all claims
against the Contractor.
8. Insurance and Deposits. Owner will procure at his own expense and before the commencement of any work hereunder, fire insurance with course of construction, vandalism and malicious mischief clauses attached, such insurance to be a sum at least equal to the contract price with loss, if any, payable to any beneficiary under any deed of trust covering the project, such insurance to name the Contractor and his subcontractors as additional insured, and to protect Owner, Contractor and his subcontractors and construction lender as their interests may appear; should Owner fail to do so, Contractor may procure such insurance as ag
4 Technologies Worse Than Their Predecessors
