They are also known as terms and conditions, client agreement or contract. In the construction space, this document is usually provided with a quote so and are incorporated by reference within your quote so that way the customer is bound by the terms and conditions.
Anyone who provides services should have their own terms and conditions. This is because it will create certainty around the terms of your relationship with your customers in the event at a disputes arises.
When reading the below consider you are a landscaper providing fencing, retaining wall, turf and soil to a new home owner.
General Terms
- Services: What services you are providing. This will ultimately be set out in your quote however it will need to be read alongside your terms and conditions.
- Goods: What goods are you providing as a part of carrying out the services. For example, retaining equipment, timber for fencing and the like.
- Price: What the price of the services will cost. Is it lump sum, hourly rates or schedule of rates?
- Variations to the Services: Costs of any variations to the services and how additional services can be requested. You should reserve your right to reject any requests if you do not wish to perform them.
- Deposit: Whether you will require a deposit before commencing any of the services.
- Time for Payment: When you will require payment for services rendered. Will they be staged based or progressive? How many days will you require payment to be made. We suggest within 5 business days.
- Charging and Caveat: Clauses that allow you to place a Caveat over the customers property to ensure payment. If they do not pay you should consider being able to ‘freeze’ their property.
- Warranties: You warrant that you will carry out the services with due care and skill. You should also set out any particular warranties relating to the Services being provided
- Third Party Information or Customer Supplied Information: Your terms and conditions should specify whether there is any data that they have provided that you will rely upon. If there are, this should deal with how any discrepancies are dealt with. For example, you should be able to seek a variation to overcome any inconsistencies as you are relying on the drawings/specifications provided.
- Termination: Rights of termination (e.g. if the client does not pay on time or is obstructing you from carrying out the services)
- Suspension of Services: That you may suspend services until payment is made if it is not made by the due date
- Liability: That you will not be liable for any faults due to negligence or misuse of the Services on behalf of the client. Where possible, you may should consider limiting your liability.
- Time to accept quote / quote validity: You should ensure that you place a timeframe on your quote to be accepted. If you don’t and the customer returns in two or three months’ time then you may be legally required to provide the work as set out in the quote.
If you provide goods and services on credit then you will need to include:
- Credit Account: terms relating to a credit account, the limit and payment terms
- Personal Guarantee: if the client company can’t pay then you should seek a personal guarantee from the Director
- PPSA: personal property and securities clause to allow you to register security interests over goods that have not been paid for. This will allow you to repossess the goods (providing you follow the correct process) if payment is not made
- Retention of title: you will want to ensure that you own the goods until payment has been paid in full
- Funds held on trust: Clauses that provide that funds received by the customer are held on trust for payment of the outstanding goods and services
Terms of trade in the business and construction industry are commonly used in the business to consumer market for example, tiling, landscaping, labourer or plant and equipment hire.
If you are taking on a larger project, then you should get a specific contract tailored for that project.
If you are carrying out residential building work in Queensland then there are a number of regulatory requirements that you will need to follow when undertaking that work, especially where the work is over $3,300.
We can assist you with the preparation of a Quote/Estimate templates and standard terms and conditions to accompany any document.
We can also assist you in preparing standard form documents tailored to your particular business' processes. These documents are custom designed and bespoke to suit your business.