Businesses thrive in the electrical contracting industry. If owners write electrical work contracts properly, they maintain a quality cash flow. As an electrical contracting business owner, you provide services to homeowners, businesses and public service providers. Whether they call for installation or maintenance, you can be of assistance. If you want to operate your business legally and safely while also retaining your customers, you need to create contract agreements correctly. Continue reading to discover what to include in an electrical work contract agreement.
One of the most important elements of an electrical work contract agreement is the work schedule. Request a proposed work schedule from your client and review it. If you feel that changes need to be made, schedule a meeting with your client. Many electrical contractors need to alter proposals due to employee schedule issues. Discuss the problems you have and agree on a new, final work schedule. Include that finalized work schedule in your contract. If you and your client do not agree on a set schedule and do not include one in the contract, you have the freedom to complete tasks when possible. However, this can lead to conflict later down the road. Limit your potential issues by writing a work schedule into your electrical work contract.
Terms Of Payment
The terms of payment section of an electrical work contract is also crucial to conducting business properly. After all, you want to get paid in a timely manner for your work. At the same time, you clients need to know how to pay you. Write how you expect to receive payment. Many contractors require their clients to provide an advance payment. If you would like to receive a payment prior to starting the job, indicate when that payment is due in the contract. Continue this trend by listing dates in which certain payments are due by. Include the amount of capital that is due at each deadline as well. If your clients fail to supply you with the finances on time, you can legally take action because you have a well-developed electrical work contract. Consider investing in invoice factoring company solutions to improve your payment processes as well.
Risk And Title
Moreover, add a risk and title to your electrical work contract. The risk and title of goods and property section of a contractor agreement states conditions regarding ownership. Specify that on the installation date, your client gains ownership over the goods that you install. However, if the client does not pay the agreed upon capital by the installation date, they cannot obtain ownership. Until they pay in full, you own the property. Contractors need to include these specifications to avoid completing a job and not getting paid for their work. By writing it in your electrical work contract, you protect yourself from such a situation.
When electrical contractors put design drawings in their electrical work contracts, they save themselves from dealing with confusion throughout projects. Ask your clients to draw out their expectations for the project before you begin conducting work. Then, you can use the drawings to perform services that meet your clients’ needs. If you follow the drawings that your clients provide you with, you hold them accountable for making any changes along the way. You cannot be held accountable for an issue if you followed the instructions visible in the drawings. Use this electrical work contract section as protection against lawsuits.
Lastly, add a safety protocol section into your electrical work contract agreement. Safety protocols are necessary for various businesses. For instance, a retail company may need to implement sales event safety strategies. Keep in mind that the levels of severity differ per profession. When it comes to electrical contracting, safety protocols are crucial elements of an agreement. This portion of the agreement explains the safety plan you developed as well as the statement of intent. Write down that you, the contractor, will use your skills, diligence and care throughout the project. If you have any other specifications regarding the quality of your work, include them in this section as well. Highlight the safety protocol that you and your employees will follow as you conduct your work. Once you complete this section, you are on your way to finishing a quality electrical work contract agreement.
If you want to take advantage of the opportunities available within the electrical work contracting business, you need to build contracts properly. Begin by agreeing on a work schedule with your client and include the final schedule in your agreement. Determine the terms of payment by deciding on both due dates and amounts due on those dates. The risk and title section clarifies who owns the properties being installed once the installation date arrives. Design drawings provided by clients reduce confusion for contractors. Finally, safety protocols and statements of intent ensure that the work quality remains high throughout the project. Include these sections in your electrical work contract agreement.