Hello,
Yesterday I wrote about why using verbal contracts when you start your handyman business is not a very good idea. Today lets talk about why using a written contract is a good idea and some things that I think should be included. Remember, I am not an attorney and I am not giving out legal advise. I am just giving examples of what we did, you should talk with your own legal adviser about your specific needs.
When a customer would contact us and ask us for a price to install something, I would sometimes give them a ball park figure over the phone. I would preference it with the fact that this figure was on a guess and we could not give a firm price until we check out the job. Even small jobs like replacing a light fixture or ceiling fan can turn into problems and you do not want to commit until you actually see what you will be facing.
So after we would go out and look at the job, then we would either give them a written estimate on the spot, if it was something fairly simple or we would have to mail them the estimate if it was more complicated. Either way, we also put our price and terms in writing. If the customer wanted the job done while we were there, we would still make out a written estimate and have them sign it before we would begin work.
Our estimates would include things like, price for labor, if any material was needed beyond the normal stuff, and a disclaimer that if we run into any hidden problems that there maybe additional charges.
Why did we have a disclaimer for hidden problems? Even for simple jobs like replacing a light fixture, until you actually remove the fixture you can not be 100% sure that there is not a hidden problem and the job will take longer than you first thought.
Our estimates were not complicated and I created them on my computer using Quick Books. The guys also had some generic forms that they could use in the field. These forms were purchased from an office supply store and were in duplicates. One went to the customer and one was our copy. The customer had to sign the form before we started work. If I mailed them an estimate I would state that by scheduling the job the customer agrees to the terms of the estimate.
My estimates also included a sentence about payment. I did very little billing. Most jobs were paid the same day we did the job. Exceptions to this would be if we were doing a large job, like finishing a basement, then payment would be in stages.
Depending on the type of jobs you do a simple estimate made on your computer or by hand at the job site may work just fine for you. If you are doing more complicated work, like additions to homes, then you will probably need a more formal, in-depth contract.
I hope this helps. Until next time.