Contracts

Discussion in 'Business Operations' started by KPZ Enterprises, Dec 27, 2011.

  1. KPZ Enterprises

    KPZ Enterprises LawnSite Senior Member
    Posts: 488

    Hey guys, we just won a large bid for grass cutting, mulching,fertilizing, cutting down a field twice a yr. Do any of u guys have them sign a yearly contract? or just the bid sheet with all the prices? this is my first really big account and want to do it right. were do you get your contracts made up? and what do you include in it? just looking for some input. thx
     
  2. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    Go talk to a lawyer, and they will steer you in the right direction, for a price. All of my commercials are on contract. You have to protect yourself
     
  3. NEW CITY LAWN CARE LLC

    NEW CITY LAWN CARE LLC LawnSite Bronze Member
    Posts: 1,268

  4. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    Why 500? Is it just a random number?
     
  5. NEW CITY LAWN CARE LLC

    NEW CITY LAWN CARE LLC LawnSite Bronze Member
    Posts: 1,268

    I just look at it as risk protection, if a $200 a month account wants to cancel service then fine we just don't show up any longer, but anything over $500 I require a service agreement which in turn has a 30 day written notification of termination clause, cause after all you could have just fertilized a large property and have money tied up into a property and having 30 days before being terminated can help recover those costs, etc...
     
  6. ReddensLawnCare

    ReddensLawnCare LawnSite Bronze Member
    Posts: 1,652

    All preference I guess. I have that included in all of my contracts. My minimum is 150/month but i feel that a penny saved is a penny earned, so 150, is a lot of pennies..haha
     
  7. NEW CITY LAWN CARE LLC

    NEW CITY LAWN CARE LLC LawnSite Bronze Member
    Posts: 1,268

    Yes, preference for some may not be the same as others, you may sign a contract with each and every customer as low as $100/month, I prefer not to have that much paperwork, and this method has never steered me wrong....
     
  8. KPZ Enterprises

    KPZ Enterprises LawnSite Senior Member
    Posts: 488

    thanks for input so far, I have a close friend that is a lawyer and I will have a call into him.
     
  9. Roger

    Roger LawnSite Fanatic
    Posts: 5,919

    KPZ, with all due respect to your friend, he may not be qualified to help you out. Further, he may not want to help you out for professional reasons (and rightfully so, therefore don't consider an unwilling response as a personal snub).

    You need to work with somebody who deals with local and statewide ordinances on the matters of concern to this business (e.g. a divorce attorney is not qualified to understand the proper laws concerned with lawn care). The qualified attorney will understand the proper indemnification terms, the remedy clauses, jurisdiction clauses, etc. If you want a document with the proper legal teeth, do not use what is passed off as a "contract" by many posts on LS. These are simple letters of understanding (what I will do, what you will pay me, how often I will show up, when you will pay me). Some call these letters a "service agreement" but it doesn't matter. They don't qualify for either term being used.
     

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