Construction or Home Improvement Company Service Contracts
Construction and home improvement companies often deal with agreements that have very specific requirements and require a great deal of money. Due to the long term nature of construction and the large sums of money changing hands, it is often mandatory for these contracts to be in writing. Even if not a requirement, having a construction or home improvement agreement in writing is a necessity or any business owner.
The reason you need a written contract for even the smallest home improvement project can best be explained by a hypothetical story. Lets say Contractor is building a fence for Homeowner. They agree, without a contract, that Homeowner will pay the cost of supplies up front, Contractor will construct a fence, and then Homeowner will pay Contractor’s service charge.
Homeowner gives Contractor the money for supplies and Contractor proceeds to buy the supplies. Contractor then builds the fence. Once the fence is done, Contractor attempts to collect the service charge from Homeowner.
Homeowner, knowing they do not have a written contract definite terms that clearly identify the responsibilities of each party involved, begins to complain. Homeowner claims the fence is 3 inches too short, 4 inches too long, that it’s crooked, that the white color isn’t white enough and even that the fence is flat out in the wrong place. He demands that Contractor offer him a gross discount.
This whole situation can be avoided with a well drafted contract that covers all the bases. Since construction and home improvement is usually expensive, the cost of having an attorney draft a contract is usually far less than the loss of part, or even all, of the contractors service fee. Better yet, the contracts can be drafted around your business model, and you can re-use the contracts for all your clients.
If you are a construction company, a home improvement company, a painter or a landscaper, you need to protect yourself against losses of income due to lack of a written contract. To discuss your options and have a custom contract drafted for your business contact me today by email at Glouzgal@grgllp.com,