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My Contract

 
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Old 04-06-2013, 08:08 PM   #1
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My Contract


I've attached my contract for review. The largest scale work I perform is single room additions, but mostly roof replacements and various siding applications. I know full scale design/build remodeling companies need contracts to be in depth and thorough, but that isn't us yet.

Please feel free to offer suggestions and additional points to add separately or under the general provisions column.

Thanks
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Old 04-06-2013, 08:31 PM   #2
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Re: My Contract


Did an Attorney draw this up for you? It's not bad, I was just curious to some of the terminology.

No place of business/ contact information, right to cancel.

As a roofer, it is important to have a clause in the contract of un-forseens (rotten plywood, structural repairs, ect). This clause should specify who is responsible for any required to proceed repairs. For liability concerns of an open roof awaiting another contractor to complete repairs (ex: Owners Uncle) so the repairs should be part of your scope, and materials plus a percentage plus an hourly per man rate.


Unseen, undisclosed, or otherwise not obvious conditions, if discovered later or during the course of repairs, will be considered not included. If discovered, photos will be taken and forwarded to (owners email) and any necessary additional repairs will be completed by Matt at rate of bla bla bla . (now a line for the owners to initial).

The benefit I have found from this step is not needing to add up an estimate mid job while work should be progressing and if explained this way the initial should be easily accepted.

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Last edited by Roofcheck; 04-06-2013 at 08:38 PM.
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Old 04-06-2013, 08:44 PM   #3
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Re: My Contract


Since your operating under an LLC I would make the contract between the owner and the LLC and leave your personal name out of it. Other than that it looks pretty standard and close to what mine looks like. Make sure your scope of work is very clear and your payment schedule is on something clear. Example: I used to say I get a draw upon completion of Interior paint when I built homes, but then people would say "Well the paint is not complete" and I'd have to tell them its not the final paint only the rough in. So I started geting my draws at like "Approval of city framing inspection". Something concrete that was less negotable and leave very little money for the final draw. I like the change orders paid up front. Good Luck!
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Old 04-06-2013, 08:44 PM   #4
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Re: My Contract


Quote:
Originally Posted by Roofcheck View Post
Did an Attorney draw this up for you? It's not bad, I was just curious to some of the terminology.

No place of business/ contact information, right to cancel.

As a roofer, it is important to have a clause in the contract of un-forseens (rotten plywood, structural repairs, ect). This clause should specify who is responsible for any required to proceed repairs. For liability concerns of an open roof awaiting another contractor to complete repairs (ex: Owners Uncle) so the repairs should be part of your scope, and materials plus a percentage plus an hourly per man rate.


Unseen, undisclosed, or otherwise not obvious conditions, if discovered later or during the course of repairs, will be considered not included. If discovered, any necessary additional repairs will be completed by Matt at rate of bla bla bla .
I found some templates online as well as on MS Word premade documents and also found the general provisions section in the "File Swap" thread on CT.

Place of business and contact info are on there, just removed them in the pdf. Been getting emails and phone calls from solicitors on here selling their products and services. Too many are using CT as a way to push their stuff and I get enough chit mail and telemarketers as it is.

Roof ply is a great one. On my old "Estimate" template for roofing bids, I had an area on there about plywood replacement and additional costs being added to final payment. I wouldn't let someone else make repairs while we're waiting to continue but smart to think ahead, I'm sure someone's had it come up. I usually charge by the sheet. $100 for 1st and $75 each for all additional replacement sheets. On roofs when I can feel the spongy conditions, I'll order sheets ahead of time and only charge the lesser cost.

I saw another contract's bid that a HO showed me. He listed $68.75/hr/man for anything needed not directly related to the original contract. He lost the job because the HO felt that would be reasonable for the foreman as the business needs to have overhead costs built in, but he felt charging that for the laborers would be extreme and it ended up costing him the job...on a hypothetical occurance! We we're a few hundred higher as well. HO just couldn't get over the hourly rate. Not sure what I should do for that clause.

Appreciate the reply.
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Old 04-06-2013, 08:47 PM   #5
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Re: My Contract


Quote:
Originally Posted by Builder Butch View Post
Since your operating under an LLC I would make the contract between the owner and the LLC and leave your personal name out of it. Other than that it looks pretty standard and close to what mine looks like. Make sure your scope of work is very clear and your payment schedule is on something clear. Example: I used to say I get a draw upon completion of Interior paint when I built homes, but then people would say "Well the paint is not complete" and I'd have to tell them its not the final paint only the rough in. So I started geting my draws at like "Approval of city framing inspection". Something concrete that was less negotable and leave very little money for the final draw. I like the change orders paid up front. Good Luck!
Good point, heard that before from others. How do you sign as an LLC? Should I type under my sig something like "managing member"? Technically that's what the gov considers owners of LLCs as I found out filing wrong IRS annuals for yrs, had to ammend them all.
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Old 04-06-2013, 08:53 PM   #6
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Re: My Contract


The hourly rate should be an average of both a laborer/ helper and lead man. In fairness to the guy who lost out, the cost of the man whether it is a $15 an hour man or $25 an hour man has little relevance when the other burdens are factored in.

There was probably more to the story than $68.75 an hour.


Unseen, undisclosed, or otherwise not obvious conditions, if discovered later or during the course of repairs, will be considered not included. If discovered, any necessary additional repairs will be completed by Matt at rate of $68.75 per man hour and material costs plus 10%.

Simple is better to everyone involved IMO.
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Old 04-06-2013, 09:14 PM   #7
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Re: My Contract


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There was probably more to the story than $68.75 an hour.
Could be. I don't remember anything sticking out while looking at it. Might have been a deterrant to do changes all together. It also probably had to do with the amount each guy earns the boss over the top, sort of like a profit lost type of hourly rate had the job not taken extra time.
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Old 04-06-2013, 09:30 PM   #8
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Re: My Contract


ARTICLE 7. INSURANCE AND RISK OF LOSS




The owners agree to maintain insurance covering the replacement cost of the improvement under contract in the event of loss through fire, casualty, storm or other disasters, and theft of materials from the site for at least the amount of the contract price. Builders insurance will only cover materials from theft until materials are installed. Once materials are installed, they become property of home owner. If such event(s) occur, the replacement will be treated as an extra above and beyond the contract. Before work begins, the property owner will furnish a certificate of that insurance to the remodeling contractor. The remodeling contractor agrees to maintain workers’ compensation insurance(if has employees) and liability insurance to protect the owners from liability claims for damages because of bodily injury, including death, and from liability for damages to property. Before beginning the work, the remodeling contractor will furnish a certificate of that insurance to the property owner.
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Old 04-06-2013, 09:32 PM   #9
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Re: My Contract


ARTICLE 27. NOTICE OF CANCELLATION


Homeowner may cancel this transaction within three(3) days from the above date. If owner cancels, any payments made to contractor will be returned within ten (10) days after contractors receipt of this cancellation form. If owner cancels, the homeowner must return any material(in as good condition as when delivered) delivered to homeowner under this contract. Any cost of returning or restocking materials regarding the return or cancellation of the shipment of the goods is at the homeowners expense and risk. If owner makes materials available to contractor for pick up and contractor does not pick up materials within twenty(20) days from the receipt of cancellation, owner may retain or dispose of material without any further obligation. If homeowner fails to make materials available to contractor or agree to return materials to contractor and fail to do so, then owner remains liable to all obligations under this contract.
To cancel this contract, please call and mail a signed and dated copy of this form to:
****
****
****


I acknowledge receipt of this cancellation form


Dated: Signed:________________________________



I hereby cancel this agreement


Dated: Signed:_______________________________
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Old 04-06-2013, 09:34 PM   #10
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Re: My Contract


ARTICLE 21. SERVERABILITY




If any provision or provisions (articles) of this contract shall be held to be invalid, illegal, or unenforceable, or in conflict with the law of any applicable jurisdiction, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

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