When a client contacts you to complete a job, you’ll likely give them an estimate for the project. The client then decides if your company or another will get the job. Clients who hire you for a job should expect that they’ll have to sign a contract.
A construction contract protects both parties from potential problems. It’s imperative that you have concise terms that can help you to protect your business if the client claims you breached the contract.
Clear identifying information
Both parties must be clearly identified. You should also outline the project that you’re completing. Include as much information as you can about this so the client can’t come back later to claim that you agreed to do more than the contract stipulated.
Firm payment schedule
Put the information for the payment schedule in the contract. Write out when the initial deposit is due and include any subsequent payments. Having clear deadlines is important so you have them to fall back on if the client doesn’t pay.
You may want to avoid litigation as much as possible. Using alternative dispute resolution methods, such as mediation, can help to prevent this from occurring. Make sure that you have those clearly listed in the contract so you can enforce it if the time comes.
Taking the time to get a good base contract together can make it much easier for you to utilize the contracts when your clients hire you to complete a job. Make sure that you always have the terms of the contract listed as agreed upon. The last thing you want to deal with is a messy legal situation because of the differences in a written contract and a verbal agreement.