When running a plumbing business, it is always a good idea to provide clients with a client agreement. A client agreement is a contract between the plumber and the client which outlines the terms of the engagement. Importantly, it can protect your business if a dispute arises. Client agreements are given to your clients (and sometimes communicated on your business’ website) before you do work for them. It is vital that the client agreement is clear and that your clients understand that you will only do the work for them if they agree to the client agreement. This article sets out the key clauses a plumber should include in a client agreement when hired to do plumbing work.
Payment and Price
Price and payment are vital clauses in any client agreement. Ultimately, your payment terms are up to you. However, in many situations, plumbers will ask for payment within a certain timeframe of the invoice date.
If you are doing the work in intervals, indicate how you will invoice work and under what time frames payment will be due. Furthermore, ensure you include the methods of payment you accept and any taxes or charges applicable.
You may also insert a clause setting out the procedure for taking deposits. For example, a plumber may state that they have no obligation to undertake certain works until they receive a deposit in full.
Time Extensions
Occasionally, you may encounter unforeseeable delays. Thus, you must cover yourself for any delays in completing plumbing work by having a clause in the client agreement that states that changes to the commencement date as a result of external factors may occur. If certain circumstances prevent you from working, time extensions may be necessary to ensure the quality of the work is maintained.
Continue reading this article below the formCancellation
It is essential to have a solid cancellation clause to protect your business against any losses that may arise from a client cancelling at the last minute. Your client agreement should include a clause that provides a procedure for cancellation.
First, you should have a clause that outlines your right to cancel the proposed services at any time before the work is to be completed and that you will not be liable for any loss or damage arising from the cancellation.
Second, you may also have a clause that allows clients to cancel services within a certain time frame. For example, this may be three days before the date of commencement. Failure to cancel the plumbing work within this time frame will result in the business retaining the deposit. Accordingly, ensure this amount is reasonable. It should not be considered a penalty for your client.
Variations
The scope of work quoted and subsequent changes can be a major source of headaches for tradespeople. A well-drafted client agreement should include terms relating to work variation. This will help eliminate this issue by setting out a process for any variations.
Intellectual Property
In many client agreements, there will usually be a provision providing for the retention of all intellectual property rights. Suppose you draw up any plans such as blueprints, sketches and designs as part of the job. In that case, you should insert a clause that ensures you retain ownership of those plans.
Defects and Warranties
Ensure the client agreement explains what will happen in the event of a defect or a failure to comply with the quote. For example, you may want a client to contact you via email to advise of any defects that they come across.
It is important to note that under Australian Consumer Law, your customer has certain rights. For example, they have the right to expect for:
- you to carry out services with due care and skill; and
- the services to be fit for any purposes that you state to the customer.
These are called ‘consumer guarantees’. You cannot remove or exclude these rights in your client agreement.
If your services fall short of the consumer guarantees, you must offer the customer certain remedies. For example, suppose a customer hires you to fix a leak in the bathroom. However, the leak returns the following day because you have not properly fixed it. Depending on the severity of the defect, the customer may be entitled to a repair, replacement, or refund for your faulty service.
You may also choose to provide an extra warranty to your customers. Warranties are different from and apply in addition to consumer guarantees. Warranties are additional promises that you can make to your customers regarding the quality of your service or how you will fix a problem with the services. For example, you may warrant to a customer that, where they hire you to fix a tap, you will repair any leaks from that tap within five years from the date you first fixed the tap. You must honour any warranties you provide to your customers.
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Key Takeaways
A professional, well-drafted client agreement can save you money and reduce disputes in the long run. Client agreements that are specifically tailored for your plumbing business should contain several clauses designed to protect you from the risks of dealing with customers, as well as ensure you remain compliant with the law.
If you need help with your client agreement, 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.
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