Review of my commerical contract

Discussion in 'Business Operations' started by Hodge, Mar 9, 2005.

  1. Hodge

    Hodge LawnSite Senior Member
    Posts: 261

    Please review and make recommendations on my first attempt at a commercial landscape contract. Going to hand out to two apartment complexes that have requested me to bid (a little change of pace.. to have somebody ask for your services, rather then selling your services) :)
     

    Attached Files:

  2. Hodge

    Hodge LawnSite Senior Member
    Posts: 261

    17 views but nobody looked at the attachment... waz up :cool2:
     
  3. Eddie B

    Eddie B LawnSite Senior Member
    from gone
    Posts: 859

    I looked at it... I got about halfway through and was too lazy to read anymore. It seems long, but very thorough.
     
  4. Turf Dancer

    Turf Dancer LawnSite Senior Member
    Posts: 681

    Too much legal crap as far as the insurance! Unless they are asking for all the specifics I would leave them out. I lost one possible large commercial account because of the extra stuff, The lady that managed the property said they did not have time to send it to their attorney so he could read all the legal stuff about insurance and disclaimers. The signed another contract that is shorter than the one I use now. She said it was easier to understand and they needed to make a decision quick.
     
  5. Hodge

    Hodge LawnSite Senior Member
    Posts: 261

    They are not requesting specific on insurance, but thought specifics were required to have them have that warm fuzzy on the insurance issue. Recommendations on simplification?
     
  6. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    Hodge,

    I suppose attachment A spells out what you will do and when? Like fertilizer/weed control apps, overseed, etc.

    I have zero experience with commercial contracts as of right now. 100% of my customers are residential. But my thoughts are this: Due to the time it takes to prepare a bid for a commercial property, as compared to a residential property, I plan to insist on a minimum three year term. (I've spent about $1,500 on printing of full color presentations folders, and two full color brochures.) Anyway, once the spring fever is over with residential, I plan to use my free time to cold call high end commercial landscapes.

    Keep me posted. Also, how did you get two apartment complexes to call you????

    Lastly, who are you using for General Liability and how much do you pay? I am with Hartford and I have to pay 4.2% of payroll. We pay a lot more in Texas than other states. But that's just a screwin'. Were it not for the pesticide application side of the business, and my ambitious plans to sign commercial clients, I'd drop the GL all together. Only had one residential client ever ask me if I was insured.

    Later,
    DFW Area Landscaper
     
  7. Mo Green

    Mo Green LawnSite Bronze Member
    Posts: 1,487

    Very long and detailed. I think you would have to be a lawyer to really understand it fully, or maybe I was just reading to fast.
     
  8. Likestomow

    Likestomow LawnSite Senior Member
    Posts: 997

    This contract is very long.

    You don't have any provision for collecting your money if they don't pay you... finance charges, attorneys fees, court cost, etc.

    You also don't have any provision for early termination and how you are going to recover up-front expenses, like mulch, planting flowers if you don't receive a full 12 months of payment.

    These things do happen and they will leave you hanging in a heart beat - protect yourself.
     
  9. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Posts: 2,116

    Very curious about how that works. The customer signs a three year deal and then fires you to hire their nephew or friend. What do you do at that point?

    Is it necessary to include some sort of ridiculous early termination fee to protect yourself? I'm thinking that might be the smart way to handle it.

    Later,
    DFW Area Landscaper
     
  10. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    It's very good .... just needs to be cleaned up & perhaps reorganized .... my normal commerical is 4 pages also

    1st page is intro with company info ...EIN .... Insurance stuff .... the parties address & stuff

    2nd page is "statement of work" what we will do

    3rd is legal jumbo
    CONDITIONS OF AGREEMENT

    Payment to FANTASY LAWNS INC. must reach the office 30 Days Net.
    Payments AFTER this Date is subject to an 18% Late Charge.
    Accounts Net 30 from Previous Billing Receive $ 25.00 Re Billing Fee

    FANTASY LAWNS INC. RESERVES THE RIGHT TO DISCONTINUE SERVICES IMMEDIATELY DUE TO LATE OR UNPAID BILLS.
    THIS PROPOSAL CONTAINS PROPRIETARY AND CONFIDENTIAL INFORMATION OF FANTASY LAWNS INC. AND SHALL NOT BE USED, DISCLOSED OR REPRODUCED, IN WHOLE OR IN PART, FOR ANY PURPOSE OTHER THAN TO EVALUATE THIS PROPOSAL, WITHOUT THE PRIOR WRITTEN CONSENT OF FANTASY LAWNS INC. IN AND TO THIS DOCUMENT AND ALL INFORMATION CONTAINED HEREIN REMAINS AT ALL TIMES IN FANTASY LAWNS INC.

    FANTASY LAWNS INC. reserves the right to determine the exact day (s) and time (s) work will be performed, (unless specified in the Service Agreement).

    EXCESSIVE RAIN OR STORM MAY DELAY NORMAL SERVICE DAY 24-36 HOURS.
    FANTASY LAWNS INC. is NOT responsible to service areas which are “not assessable” due to lock gates, pets, children, work areas, debris in the work area, litter, lawn ornaments, vehicles, etc.
    FANTASY LAWNS INC. will perform these services as an independent contractor and in a manner considered reasonable. It will provide labor and equipment to perform the work as outlined in the Statement of Work. Work will be performed in a safe, professional and expeditious manner; and it may employ assistants and subcontract for services. ALL Workers while on Median’s shall wear reflective Safety Vest.

    FANTASY LAWNS INC. will NOT be responsible for damages due to improper installation of Irrigation pipe, wires, cable etc., which are not installed deeper than 3” below ground level near edging surfaces in beds or along cement edges, lack of “funny pipe” at Irrigation Heads.
    FANTASY LAWNS INC. is NOT responsible for personal items left on the lawn or runaway pets.
    FANTASY LAWNS INC. does NOT act as an agent of the Property- Management or Owner (s).
    FANTASY LAWNS INC. will replace or pay for any damages (those reported with 72 hrs.) or injuries due by neglect or mowing service activity, directly related to FANTASY LAWNS INC. maintenance operation within a timely manner, irrigation damage repaired with 24-72 hours.

    FANTASY LAWNS INC. is NOT responsible for delays caused by acts of God or events beyond its control, vandalism or improper operations of systems not under our maintenance (Irrigation).
    Storm Damages and debris from acts of God (drought, hurricanes, heavy winds, tornadoes, freezes and other acts of nature) are not the responsibility of FANTASY LAWNS INC. An option, at extra charges, other than the designated monthly bill due to clean-ups, can be determined and given a written estimate to the customer. If the customer does not wish to pay these extra charges as described in the paragraph, owners may remove the debris themselves BEFORE the next service visit. Excessive litter or debris (Palm Fronds) MUST BE PICKED UP BEFORE SERICE MAY CONTINUE.

    This is the entire agreement between FANTASY LAWNS INC. and Owner (s), and any prior agreements, understands, or terms are revoked by this agreement. The price is based on services described in the Service Agreement. Owner (s) agrees to negotiate a reasonable price adjustment with FANTASY LAWNS INC. for any changes in those services. Either party other than stated in this agreement has made no representation. No modifications of this agreement shall be valid unless in writing and approved by both parties.

    If lawsuit or other proceeding arises from a dispute over any terms of this agreement or its performance, the losing party will pay the winning party all the cost it causes the winning party to incur, including reasonable attorney fees at any court level. If a court holds that any of its terms is invalid or unenforceable, the rest of the agreement will continue in full force and effect. Upon Cancellation Compensation for All Services will be pro-rated in conjunction with the work performed between First & Last Day of Service Agreement adjustments submitted with final bill.

    4th is price .... aggrement signage area with length of contract date right under that .... & a 30 day out clause for non committment of contract

    Fore us we charge monthly .... & have a compensation of services statement .... it contract ends early
     

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