Contracts...have a read. - Contractor Talk - Professional Construction and Remodeling Forum

AARC Drywall · 01-30-2009, 11:18 AM

Hey guys,

I have never used a contract..and now i will have to.. times are tight, and people seem to think that we as conrtactors have screw me writen on our forheads..
Would you have a look, and see if we missed something, or areas of adjustment.

Thanks, feel free to use if needed. I dont want to see anyone else get screwed, and if this helps, go for it.

http://www.aarcdrywall.com/AARCContract.html
J

Mike(VA) · 01-30-2009, 12:07 PM

Just a few comments: You should have a different contract for GC's and HO's.
Time and Completion:The work to be preformed by the Contractor pursuant to this agreement shall be commenced within ( ) days from this date or approximately on (dd/mm/yyyy) provided that the terms and conditions have been met. (see page 2)
You just need an estimated start and completion date, GT%C's spell out what could change the time.
Payment: Owner or Contractor agrees to pay AARC Drywall a total (cash/ Certified cheque) price of $ Down payment of $ (if required) Payment Schedule as follows (also see page 2)
Total amount of_____________ to be paid as follows:
x% deposit, x% at board install, (if needed for long install jobs), x% when complete, 7 days to pay.
Payment of 50% of above total amount may to be required once boarding is complete, if taping is required, contractor reserves the right to lien the property to secure funds, then commence with taping. Remainder of monies to be paid net 7 days from final invoice date. AARC Drywall reserves the right to ask for monies to cover materials, before boarding will commence.
Forget all this. Lien info goes in GT&C's, your deposit should at least get your materials covered.
Allowances:All Materials needed are included in the contract price. The contract price shall be adjusted upwards /downward based upon actual amounts needed rather than estimated amounts herein.
BIG RED FLAG! You estimate properly, there is no need to adjust up or down. You goof up, you eat it. That's how you learn. Allowances are amounts allocated to items of customer's choice. They spend more or less, but you have given them an idea of costs for those items. I don't think you need allowances for rocking.
At least its better than no contract at all. Last point, get Michael Stone's book on contracts called The Contractor's Legal Kit. About 90 bucks and you can use the material anyway you want.

Sir Mixalot · 01-30-2009, 04:04 PM

I would never consider starting a job without a contract w/ a HO's or GC's signature. No matter how big or small the job is. Here's portion of one of my contracts.

[quote] All material is guaranteed to be as specified, and the above work to be completed in accordance with the drawings and specifications submitted. Payment terms to be negotiated and agreed upon by all parties prior to contract signing. Any alteration or deviation from above specifications involving extra costs will be executed only upon written orders, and will become an extra charge over and above the estimate. Workers Compensation and General Liability insurance policies will remain in effect on above work.
All work to be completed in a substantial workmanlike manner for the sum of: $3200.00
Payment to be made as follows: (30% after demo--40% after drywall has been installed---30% upon completion) [quote]

AARC Drywall · 01-31-2009, 02:00 AM

Thanks guys, really appriciate the input, and will make changes.

72chevy4x4 · 01-31-2009, 08:10 AM

regarding the allowance portion-your steps in estimating should include an additional amount of slack-say 5-10% extra more material waste. the way it was worded sounds more like T&M with a fixed 'time'. I use allowances; for instance a HO choosing their own fixtures for a bathroom remodel may have an allowance of $500 for choosing a vanity top and faucet (materials only). If not used they get a credit, if cost is more than $500, the additional cost is added.

barack · 02-04-2009, 12:14 PM

Here is a couple of sample documents on the subject, you might want to consider:
Go to truebluecontractors.com website
Go to Articles
Go to Templates and forms

Sorry guys, I can't post links so far, so those who are interested might still want to check the sample documents at the specified location.

Sir Mixalot · 02-04-2009, 07:10 PM

Welcome barack!

Here's that link Templates & forms