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What do you guys think about my new contract????

Discussion in 'Business Fundamentals' started by lude1990, Nov 18, 2010.

  1. lude1990

    lude1990 Senior Member
    Messages: 134

    Let me know thx :)
     

    Attached Files:

  2. Fatality

    Fatality Senior Member
    Messages: 226

    I think a dollar a day for late fee is a bad idea. Too much to keep track of if you have a handful of clients. I would recommend doing a certain flat rate percentage. The wording on the pricing/trigger needs to be sumed up better imo.
     
  3. got-h2o

    got-h2o 2000 Club Member
    Messages: 2,439

    As for late charges, legally the most you can charge is 18% annually.......1.5% per month

    I browsed through it quickly and can look it over better tomorrow and give my opinion on the rest.

    It's best to use a base legal document and expand from that.
     
  4. PLM-1

    PLM-1 Senior Member
    Messages: 424

    I think you got a lot of it off another contract floating around here, no biggie. I would watch the term "removal". You are PLOWING, these terms are not interchangeable.
     
  5. lude1990

    lude1990 Senior Member
    Messages: 134

    yea i browsed threw like 5 different ones and kinda took the best of each of them and added my stuff from my old contract to get the best thing possible. I am going to change the late fee price tho. thanks guys
     
  6. Mick76

    Mick76 2000 Club Member
    from Maine
    Messages: 2,157

    Have your lawyer look at it... some of the best money you'll spend!
     
  7. Rc2505

    Rc2505 PlowSite.com Addict
    Messages: 1,245

    Add a line on the first page for the customer to initial, and date. That way if it ever has to go to court, they can't say they never saw the first page.
     
  8. pongow26

    pongow26 Senior Member
    Messages: 153

    You know for my storage business what I do is add a late fee for every month late and that doubles as time goes on. IE say a person is late one month I will tack on $5 (example purposes only). Then say they make no payment are late for the second month, tack on $5 for the second month and another $5 for the previous month. so it is now $10 for the first month and $5 for the second month, In plowing you would need to adjust the time and amount but the reason I chose this method is because it gives the customer a chance to make it right before they acquire too many late charges and if they chose not to pay then it can get pretty hefty as time goes on
     
  9. Tubby's Snow Plowing

    Tubby's Snow Plowing Senior Member
    Messages: 199

    Found five spelling errors, two grammatical errors, and two punctuation errors. Correct those before presenting to clients. Use the spellchecker on your computer and have a third party proofread it.

    Definitely change "removal" to "plowing", as grammar dictates.

    Since this is a legal document I would advise you not to use "a" to represent numbers. For example, "a dollar a day" should be changed to "one dollar per day" since it's a rate.

    I would consider changing charges due "upon performance of contracted service(s)" rather than upon receipt. If you have someone else doing billing, keeping it as is might be a better choice. If you are doing all the work and billing, issuing a hand written carbon copy receipt and putting it inside the mailbox when work is complete, might also be a good choice. That is up to you.
     
  10. lude1990

    lude1990 Senior Member
    Messages: 134

    That is what i have always done is put a carbon copy in the mailbox when im done at each mail box. I take care of all things in the company
     
  11. LB1234

    LB1234 Member
    Messages: 91



    ditto:nod::nod:


    we wrote ours up as best we could then sent that over to the attorney. He corrected everything or put it into legal jargon and had me add a few things.
     
  12. ff610

    ff610 Senior Member
    Messages: 320

    What everyone else says, and I would add a place for your customer to initial next to each pricing option. Also do you salt? If so, I would add a line for salting at your discretion or at their discretion. Make them initial that too. One other thing I don't think I saw was something allowing you to get reimbursement for legal expenses if you feel you need it. I'm not sure about residential but my commercial contracts are 3 times the size of this. Just a cover your a## thing. I have been burned on one residential over the years.....
     
  13. Eyesell

    Eyesell 2000 Club Member
    Messages: 2,101

    My "terms" clause is the most important part of my contact next to the pricing portion. You may also want to add things like:

    - We will not be held responsible for plow damage to sod, shrubs, landscaping, retaining walls, nor scratches or scrapes in asphalt and concrete surfaces no matter what shape they are in.
    - The customer agrees to make every feasible effort to keep plowed locations free from obstructions, such as cars, trash cans, etc. We will not be liable for any damages to any hidden objects by snow, any damages must be reported in writing within 24 hrs.
    - Any car left in parking lot will be plowed around with no consideration where snow will land. Only areas that are unobstructed will be serviced.

    These are just a few of the things in my contract and I had to pay a lawyer to proof and finalize, if this was not the case I would be open to sharing the balance with you. When you've finalized send me a PM with what you have and I can make a few suggestions for you if you like.
     
  14. tjlands

    tjlands Senior Member
    Messages: 575

    Not a joke but 3.5 and 6.5" is not covered. Change that.
    Maybe remove #4 on terms- doesn't make sense,
    Take out #5 also and just add an hourly charge for Drifting,
    $15 is not enough if you get totally buried.
    Late charges/, $1 a day just sounds ridiculous, just say due upon receipt, with charges(most allowed by law) and delay of service after 30(15)days.
    Your trigger is listed on terms and customers trigger on top- should be one or the other- not both.
    What if it snows April 3rd.
    Maybe change salting to ice control and separate sidewalks and pavement(calcium is much more costly that salt)
    and then either at every service or only upon request

    Sorry
     
  15. lude1990

    lude1990 Senior Member
    Messages: 134

    The inch thing is fixed typo on my part I changed the late fee thing a long time ago. I have a trigger for the customer because I have some driveways that they only want service if it over a certain amount. I had one last year that he didnt want me to come unless it was over 6".
     
  16. jgoetter1

    jgoetter1 Senior Member
    Messages: 278

    You need to understand that your customer base will not want to hire an attorney to understand your contract. Some of your wording is just too complicated. Simplify this for your customers sake.

    These customers will be doing $100 - $200 in business with you, its okay to have basic language such as: we have a 2 inch minimum and we charge you x amount for each time service is provided.

    You do plan on invoicing, right? You'll have to figure out your cockeyed system for each customer every storm you work.
     
  17. Mass-hole

    Mass-hole Member
    from Boston
    Messages: 35

    A contract is an instrument between two parties that describes the duties of each party to one another. This document doesn't do that. What does "the removal of snow" mean? Where on the property is snow being removed from the roof, the lawn, the pool, the gutters? Reading your contract I have no idea. Every technical term must be defined in the contract. This applies to all other technical terms, i.e. trigger, base rate, etc)

    How quickly are you going to arrive? What if you don't?

    Your late fee saying that "unless prior communication..." certainly reads such that a customer can call and say, "Hi, you guys are doing a great job plowing my lawn, but I don't think I'm going to pay you this month. I might be willing to do it next month." to successfully avoid being assessed a late fee. What happens if you need to go to court to get a judgment against your customer?

    Where is the snow accumulation measured? at your office? the property? who is measuring? how will you deal with a dispute between you and your customer over measured accumulation?

    I could go on, but I'd be doing your work for you. Either get a lawyer, or think of every stupid and not so stupid question a customer has ever asked you and put it in your contract. Then I'd still get a lawyer, but you'll end up paying him less...

    Good luck this season.
     
  18. Main thing I see is there is no real description of what services and to what areas you are going to do. Ex. being "plow/remove snow from driveway, public sidewalks, walkways etc". Also find the wording in general is very confusing. Oh well enough of me doing your homework for ya!
     
  19. LB1234

    LB1234 Member
    Messages: 91

    I remember my attorney having me replace the word "removal" with relocation. I looked at him like he had two heads. Then he asked a simple question...am I removing the snow or relocating it? I laughed and was in complete agreement. He also had my install a section that I can trace out the plowable areas AND mark the location of the "relocated: snow. He then had me place in a section for them to initial off on EVERYTHING. My limitations on liability clause is one solid page. again, just speak with an attorney. penny wise pound foolish.
     
  20. lude1990

    lude1990 Senior Member
    Messages: 134

    As for the removal vs plowing vs etc. Most everyone around here uses removal when they are doing driveways or any thing snow related. And if they snow is to be taken off site then that is worded in the contract from what i have seen around here. Thanks for your input guys.