Contracts

[WoodCutr]

How many of you use contracts? do you require a deposit or have a damage waiver?

I got a sample contract from a buddy of mine, which gives an option for 100% pay upfront upon work start, or 80% at the time of signing and 20% after work finish, no damage waiver or anything like that
im looking to add something to mention a release of liability for driveways (when we have no other option but to set the bucket truck or crane up or work on the driveway with equipment), irrigation systems, and any other objects that were either hidden but not mentioned by the client, or placed after the tree was bid (septic, underground power or internet ETC)

also looking for a cancelation clause, perhaps instead of doing 80/20, swap it to 20/80 non refundable on all jobs requiring rental equipment or extra hands, and offer either the 20/80 system or 100% after the job is done on any jobs where I dont have much overhead
basically cover my ass if someone doesnt pay, or gets upset over unavoidable damages (such as the driveway cracking mentioned earlier, last time I tried to get a crane that could reach from the road the customer freaked out at the 6000 dollar crane bill)

what say you?

 

[SeanKroll]

Your insurance may not be in effect without a signed contract.

 

[WoodCutr]

Your insurance may not be in effect without a signed contract.

yeah I should probably look into that, didn't even think about that

thanks Sean.

 

[greengreer]

I'm kind of 50/50 with signed contracts. A lot of times a ballpark quote and a handshake is fine but this is mostly for existing clients that I have a relationship with.
Bigger jobs, HOAs, property managers, contractors, etc get a contract to sign. Any time there's a risk of damage out of our control (ie crane on a driveway) that gets added in.

I never take any $ up front.

 

[WoodCutr]

I never take any $ up front.

currently I don't, but on bigger jobs when I'm paying out large sums of money to a crane company, laborers, disposal, etc then id like to at least cover that incase a customer decides not to pay

I have had a few jobs where I end up spending 5 or 6 thousand dollars before I ever see a penny back and I don't like it

 

[Nutball]

It sounds smart. At least some kind of down payment should help make sure the customer doesn't cancel or go with another company, and if they do, you have you expenses covered for a wasted day, whether it just cost paying your guys for a day of no work, or paying for a crane and rentals that never got used.

 

[WoodCutr]

It sounds smart. At least some kind of down payment should help make sure the customer doesn't cancel or go with another company, and if they do, you have you expenses covered for a wasted day, whether it just cost paying your guys for a day of no work, or paying for a crane and rentals that never got used.

my current goto crane company lets me pay over the phone also, since they trust me, but if I want a crane bigger than a 30 ton then I have to pay before they leave, which is anywhere from 2100 to 8000 bucks

I have been called to tell me they found a better price, before I even got home from giving the quote, within 30 minutes ive been underbid, repeatedly, I might start doing paid estimates, if I get asked about free estimates odds are I lose the bid 99% of the time anyways, if they wont pay $25 for a quote then they wont pay $2500 to get a tree removed