Contract Help

[Marinucci_Landscaping]

Hey Everyone,

I'm trying to nail down better contracting for this year of landscaping, and I was wondering if people would be willing to post, or at the least share ideas regarding the type of written contract they produce for a general lawn cutting/landscaping job (emphasis on the former) for a residential area. I figure with all the big business men and women who post on these forums, they would be the source to go to for successful contract design.

The reason I would like to implement a legitimate, stronger contract was because I got taken advantage of by a few customers last year due to weak contracts I had produced for them, which protected them, but not myself. My bad debts for the year only amounted to $25.00, which is nothing I know, but I'd really like to implement better business practices and nip this problem in the rear before it seriously threatens my ventures. I need a contract that is acceptable to both parties, and can be easily understood.

Parts of a contract I would like to focus input on:

Billing/Payment Procedures
Discount (2n30 kind of a deal)/Late fees (what is reasonable for residential jobs that average around $20.00, and what is reasonable for landscaping jobs are significantly higher?)
Liability Protection (hold harmless cause, do I need one?)
Customer Guarantees (satisfaction and the likes)


If there is anything I missed, please feel free to add. I know it's a bit, but any input/feedback would be greatly appreciated. Thanks in advance.

- Marinucci

[Marinucci_Landscaping]

When I can post an example of what I've come up with in a contract form, I will.

- Marinucci

[Marinucci_Landscaping]

An example of one of my (working) contracts:


Contractual Agreement for Marinucci Landscaping for the year of 2009

Customer (Job Location), herein known as “Client”:
xxxxx
Landscaper, herein known as “Contractor”:
Marinucci Landscaping

Contract Provisions
1. The following contract shall outline landscaping work on Client’s home for the year of 2009. The contract shall be put into effect as of May 16th, 2009. If either the Client or the Contractor wishes to arbitrarily terminate this contract, a 7 day notice must be given to the appropriate entity before terminating services.
2. Contractor agrees to cut the lawn, and trim as deemed necessary by the Contractor. Upon completing cutting and trimming, the Contractor shall blow away waste clippings from the Client’s property. Contractor shall supply the appropriate equipment to complete the work.
3. Lawn cuttings performed when deemed needed by the Client, with the Client notifying the Contractor a minimum of 2 days prior to desired cut date.
4. Grass clippings will be stored in containers supplied by the Client.
5. Any extra services will be agreed upon in advance between the Client and the Contractor, on a per job basis, with the formation of a new, independent contract.
6. Contractor shall charge a minimum $15.23 to a maximum of $17.40 with tax. This price can vary between this range on a per job basis by the Contractor’s discretion.
7. Client shall pay the Contractor immediately upon the completion of work, and if not present, within one week’s time. If Client does not pay after 7 days, a fee of $4.00 can be added to the amount owed, and subsequently for every 7 day period of time thereafter.
8. Contractor guarantees customer satisfaction with the cutting, trimming and ensuing clean up for the work done. If the Client is not satisfied with the cutting, trimming or clean up, she has the right to require the Contractor to fix the unsatisfactory work to what is normally deemed as acceptable.
9. Contractor is liable for any damages caused by Contractor’s negligence, done to person or property while working at Client’s address; Client is not liable for any injury done to person or property caused by the Contractor, unless the injury to person or property was the direct result of Client’s negligence or irresponsibility in notifying the Contractor of abnormalitie(s) that were not present in previous jobs.
10. Additions can be made to this contract, but must be typed out and agreed upon by both parties, validated by a resigning of the new contract by both parties.

Signing on the line below notates agreement and compliance to the above contract. If either party violates this contract, the other party (injured) has the option of immediately terminating this contract without having to wait the 7 days outlined in the 1st provision.


-------------
Client, date

-------------
Contractor, date

[HOOLIE]

I think you're wasting a ton of time over $25. Require credit cards or autodraft upfront, and that my friend, is your contract.

[Marinucci_Landscaping]

Under $25.00 you mean?

I'm not quite at the stage for accepting credit cards, but I have a contact that is willing to set me up for no upfront fee (if there is one?)... I was thinking of polling the customers I have now (36ish), and seeing if they'd be on board for paying with credit cards. The ease in payment with cards, and measure of professionalism is definitely attractive, but if I can't get many to get on board, it won't be worth the cut I have to pay per charge.

That's a concern of mine... pricing... and is going to the topic be my next thread. I live and work in Amherst, NY ... demographically, single professional women and elderly individuals, most of which are middle class, are my in my target market. I'm new to the estimates game, so I'm trying to find a happy medium there. I'm thinking what I'm going to do is track all of my expenses (insurance, car payment, equipment payments, gas etc.) for a month or two, and use that as a guide to accurately estimate my expenses, and build from there.

- Marinucci

[Hell on Blades]

I operate with no contracts and have not missed one payment beyond a simple email reminder. I also invoice monthly, as to keep it simple. My policy is very simple when it comes to special service or cancellations... EMAIL only at least 8 hours (that would be midnight the night before) before I'm scheduled to mow your yard. No email and I'll show up. I may let it go once, but I almost have more than I can handle now ....

[Marinucci_Landscaping]

90% of customers don't need or want a serious contract, which I have no problem. What I'm doing this year with payments is outlining on the "Memo" part of a QuickBooks invoice how I want to be paid, deadlines etc. It's the other 10% that give me headaches... and I'd like to have a contract on a file for the bigger jobs regardless.

- Marinucci

[MikeRi24]

Couple of things that stood out at me.

2) Having the customer call you and say "yeah I want my lawn cut" is asking for trouble. Just put something that says you will cut it once a week. you're not an on-call service. if you are, and like to operate that way, god speed.

6) Don't put "will charge a minimum of $XX and a maximum of $XX" as deemed by you. thats just asking for arguments between you and your customer. just have a set price for each lawn and put it in there for each contract. thats the price it is what it is.

7) so what if the customer isn't home? send them a bill once a month for what they owe, then you can spell out payment terms and late charges. No one is going to re-structure their lives to make sure they are home for the lawn guy, no should you restructure your life to make sure you are there at the drop of a hat to cut the lawn (see #2).

10) work out all the bugs before you present the contract to the customer. if you do it right, revisions shouldnt be needed.


If you are serious, do yourself a favor and pay a lawyer for an hour or 2 of their time to help you draft up a professional contract.

[Marinucci_Landscaping]

Mike:

Awesome input, thank you very much!

I've been thinking about that, just hiring a lawyer and getting it done right the first time. I'm pretty green at this, no pun intended, so any advice goes a long way.

- Rich

[Hell on Blades]

If you don't want to pay for a lawyer, try a service like legalzoom.com... they tend to be cheaper...

I've found a pretty good template.. email me and I'll send it to you...

rademachersoutdoors@fuse.net

[Marinucci_Landscaping]

Great! Email is on the way. Many thanks, friend.

- Marinucci

[Looking Good Lawn Service]

I dunno, most customers don't like contracts, maybe a terms of service might work better, where you provide what you do and for how much and put a clause that when you start cutting they automatically accept the terms, just like the banks and other organizations. Besides, you don't need a contract to enforce your payment. Just by common law you have methods if need be for action. For example, if you and your customer are regularly operating in a principle and agent form you dont need to prove to the law anything, besides that by acting in the manner, you are ratifying the agreement that you have, all you need to prove is that any "reasonable person" would see that this is done on a regular basis presume a payment be made. Same as when you go for a hair cut, you walk in and sit and get it cut, the barber does not expect you to not pay for services rendered, and so does the common law, and that is what matters, the contract is understood in the eyes of the law. It doesn't have to be written...Its a lot to go into in this thread, but after all the business law classes I have taken, I understand enough to see it is not necessary at least with residential clients, Commercial accounts, that is a different story.