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I’m a building contractor, what do I need in my contracts?

As a building contractor, there are a few things you need to include in your agreements that protect your rights and interests. Providing quotes and conditions to customers means that each of you know what you agree to provide before you get stuck into the work.

Quotes

Providing a quote is a great way to clearly and easily explain to the customer what work you will be doing and the payment required to help the customer decide whether the services are exactly what they want. It also helps the customer budget and plan and helps your business by showing professionalism and a willingness to provide good service.

Conditions

The contract you draw up should include anything you and the customer have agreed on including your role, rights and responsibilities. As part of the contract, you will also need to include details of the work to be carried out. This will include extras like fixtures, fittings and finishings. To avoid any confusion as to what products you agreed to include in the beginning, it is best to list all of these items including details about the make, model, colour and style.  All of this does, of course, depend on the type of work you are doing for the customer and the projected cost of the project. And finally, you will also need to provide drawings or plans of the work requested by the customer.

Make sure the contract is written in clear and plain English, and provides detailed descriptions of all of the work you are going to do for the customer. You need to include the following details:

  • Your name,
  • Registration number,
  • Address,
  • Agreed price, and
  • How payment is made.

You might need a deposit provided or progress payments for the work along the way. It should be clear when the contract begins, as well as any implied warranties, including consumer guarantees. You also might need to include a cooling-off period, as well as information about terminating the contract.

It’s important to include in the contract the start and finish date of the work with allowances for any delays along the way. It is a good idea to consider the number of days that unforeseen events, like bad weather, will impact on the finishing date of the work and include that in the contract. It is also sensible to address, at the outset, how you will approach varying the contract if the customer decides they want a different service or would like to include extra items.

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Conclusion

There is a lot to consider when drawing up a building contract with a customer. Before proceeding, it is prudent that you seek legal advice.  A specialist contract lawyer can assist stepping you through the necessary clauses your contract should include, and can help iron out any of your outstanding issues. Our specialists at LegalVision can help you create the best contracts for your business to help provide customer satisfaction, and so you can return to the job at hand.

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Bianca Reynolds

Bianca Reynolds

Practice Leader | View profile

Bianca is a Practice Leader at LegalVision with expertise in private M&A and Corporate law. She has assisted clients in a large number of business sale and share sale transactions and assists clients with their general corporate needs, such as shareholders agreements, share buy-backs and employee share option plans.

Qualifications: Bachelor of Laws (Hons), Graduate Diploma of Legal Practice, Bachelor of Arts, University of Adelaide.

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