Question:
anyone ahve a copy of a really good construction contract they want to share
hopefully it would be on excel or ms word. as a beginning builder i am
trying to be as thorough as possible without handing a buyer an inch thick
contract.
Answer:
Why not look at the AIA-101 contract. it is about seven (7) pages one
side and things most aspects of construction. it costs about $6.00 per
copy at any construction book store. Try a contracting licensingg store,
they should have some available.
Will and should are two different things. The AIA has ostensibly crafted an
unbiased contract. This is not true. Same goes for the AGC contract. The
benefit of these contracts are that they have been through the courts a million
times and you can pay $6. for a contract.
You are starting out in a tough business. Your contract is the bottom line of
your business - skimp now and I guarantee you will regret it. Ask/join a
builder's association. Pick some brains. Other builders will love to tell you
war stories and you can learn from them instead of your own (read expensive)
mistakes.
Instead of worrying about a thick contract scaring off a potential customer,
think about using it as a selling tool and as a means to qualify a customer.
Explain that you leave nothing to chance - the more complete the contract, and
therefore the understanding between you and the owner, the greater the chances
of both parties being happy at the end of the project. If the owner doesn't
want to bother reading a 10 page contract, I figure he isn't serious. Ten
pages takes ten minutes.
In my roofing business I don't use contracts. I use a Proposal to
spell out work to be completed. The Proposal's purpose is more
informational than contractual and contains zero legal jargon. A 5th
grader could understand it. Often I don't even ask the customer to
sign it. My customer relationships are based on trust and
communication. Sometimes there are questions or problems. These are
handled in a very fair and open manner. I wouldn't try to corner my
customers and they don't try to corner me.
I realize that this method of conducting contracting work is not for
everybody and I certainly don't recommend it for everybody. An
argument could even be made that it is foolish. Still, after many
years in the business it's worked very well for me. To me, the
advantages far outweigh potential disadvantages.
I think I'm trying to make two similar points...
1) You don't necessarily need a contract to protect you.
2) If you don't do your job well, a contract still probably won't
protect you.
