If you are an electrician working as a contractor directly for clients or a sub-contractor to a builder, you may need to include more details in your terms and conditions than you realise. For example, each client agreement must include terms and conditions which set out the scope of your work and what you are responsible for to help strengthen your rights to be paid and to limit your liability. Likewise, if you are an employee or contractor, you need an employment or contractor agreement that sets out the work expected and the rights and obligations of each party. This article will explore the business terms and conditions you must include as an electrician.
Client Agreement
Your client agreement comprises of your quote and your legal terms and conditions. In addition, a well-drafted client agreement should include the following:
Quote
A good template will allow you to fill in client-specific details. Once clients sign the quote, they accept the attached terms and conditions.
Services
You should clearly describe the services you will provide, which will determine the scope of work you perform for your client.
Fees
The quote should include a description of your fees. This can be an hourly rate or a fixed fee.
Payment Terms
Payment terms must be clear to ensure the client can pay for your services. For example, you need to decide whether you wish for the client to:
- pay per invoice;
- pay in advance; or
- pay upon completion of the service.
Whichever method you choose, you must clearly convey this to the client.
Price variation
A common issue with electrical services is that more work is required than is quoted initially. However, well-drafted terms and conditions can help mitigate payment and work scope problems. For example, you can include a term for discussing extra work with the client before performing it. Alternatively, if this is not practical, you can agree to do the additional work and invoice your client at a pre-agreed hourly rate.
Accessing Underground Locations
As an electrician, your work may be in hazardous locations. Suppose the work requires you to access any underground locations. In that case, the client needs to tell you the exact location of any underground electrical services on the site and the location of underground gas, sewer, pumping, water, oil pipes and cable services.
Limitation of Liability and Disclaimers
You should list what you will not take responsibility for. This may include:
- any damage that occurs by factors beyond your control;
- the client’s negligence or misuse;
- unauthorised modifications or repairs; and
- any damage caused by liquid, rust or corrosion.
Consumer Guarantees
Although the client agreement is to protect you and your business, the Australian Consumer Law (ACL) has mandatory consumer guarantees which apply to businesses that provide services. For example, the ACL gives clients a right to a refund or replacement if there is a significant failure with any service you provide. As an electrician, these rules will apply to your business.
Employment or Contractor’s Agreement
If you hire employees or contractors, it is essential to have a written agreement that includes:
- any Award;
- pay;
- safety; and
- necessary qualifications and other requirements.
Website Terms of Use
If your business has a website, you will also require a website terms of use. These terms protect your website and limit your liability. The terms claim your copyright and intellectual property rights. Additionally, they set out permissible and prohibited uses of your website, including that competitors cannot use your website information.
Continue reading this article below the formPrivacy Policy
If you collect, use and disclose personal information from customers, including using the information for direct marketing, you need a Privacy Policy to ensure you comply with the Privacy Act 1988. The Privacy Policy is between you and the person you collect personal information and should include:
- what personal information your business collects;
- how your business will use this information; and
- the circumstances your business will disclose the information to third parties.
Before buying a business, it is important to undertake due diligence, to verify the information supplied by the seller. This guide will walk you through the due diligence process.
Key Takeaways
If you are an electrician, you should speak to a lawyer to draft a client agreement. A well-drafted legal document can make a considerable difference to your business. Without a strong client agreement, you may face confusion, disputes, arguments about payment, and considerable liability.
If you need help with client agreements, our experienced contract lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
Having a written client agreement is considerably more reliable and ensures you protect your commercial interests. In addition, a well-written client agreement will ideally address any confusion regarding the terms of the agreement and ensure your business is not liable for any unforeseen events.
As a business, you must comply with Australian consumer guarantees. Excluding them will not benefit your business or limit your responsibilities.
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