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Contract question

Discussion in 'Business Operations' started by The Rock, Jun 18, 2003.

  1. The Rock

    The Rock LawnSite Member
    from Maine
    Messages: 22

    I have a condo complex close by that wants me to put in a bid based on a 3 year contract. It will be around 25K per year. I need to put in a reasonable back out for both parties incase it doesn't work out for either one. This is the first time I have had to make up a contract. Any suggestions that you could provide on this topic would be appreciated.:D
  2. B. Phagan

    B. Phagan LawnSite Member
    Messages: 95

    Put a clause in for termination "for cause".....and based on green industry standards of performance, weather permitting, etc.
  3. smburgess

    smburgess LawnSite Senior Member
    Messages: 467

    60 days, either party, in writing, for any reason.
  4. Rustic Goat

    Rustic Goat LawnSite Bronze Member
    Messages: 1,194

    Do you have a lawyer, or know someone that is a legal aid?
    Locking yourself into a three year contract can be a very risky deal. Is there a provision if your fuel prices double (or worse) for some now unknown reason?

    What ifs are endless. If your company can't perform for some reason, and this property has to hire someone (even to fill in) what happens if they charge triple what you're charging and your client expects you to pay the difference because there's no provision in your contract saying otherwise?

    Even if you leave yourself a back door (cancellation clause) that doesn't stop anyone or company from taking you to the ever popular courthouse for several days of fun.

    Just suggesting you be very careful, sometimes lawyers have a value.
  5. B. Phagan

    B. Phagan LawnSite Member
    Messages: 95

    A long term agreement is best for the customers as well as us....they really don't like switching......for the above, simply put in the provisions for your protection........as long as you intend to do a professional job, have terms for renewal, COLA's, etc, you'll keep them longer and make more money!!
  6. John Allin

    John Allin LawnSite Bronze Member
    Messages: 1,488

    We won't do one year deals. Three years minimum, and preferably 5 years. We seem to have done ok with that philosophy......

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