Contract question

Custom Home, July-August, 2005 by Chris Brandl, Dennis Dixon

I just read the article ("Bidding Wars," by Dennis Dixon, January/February, p. 26). Great stuff! I seem to endure many of the pitfalls you describe in your article. Do you have any advice on where I can find a good consulting-estimating agreement or professional services contract to get the ball rolling with a prospective customer? I have a good construction contract but not a good document to cover the preliminary design work.--Chris Brandl, Brandl Anderson Homes, Inc., via e-mail.

Dennis Dixon Answers:

Thanks for your letter regarding estimating/design contracts. Writing your own estimating/consulting contract is simple. It should be short and to the point--no more than two pages typed. Besides your company information and client details, the document should state:

1. The service or work being provided

2. Cost of the work and whether it's flat fee or hourly, plus the payment schedule

3. Amount of your time that will be invested and provided

4. The kind of written reports (if any) provided

5. A definition of your responsibilities (limits on what you can and cannot do)

6. Names of the involved parties: owners, architect, surveyor, interior designer, etc.

In today's custom home market, the plans and specs am seldom 100% complete at the time they, are presented to a contractor jot pricing and construction. I usually "sell" my estimating and specification completion services to clients by showing them an actual example of what fully defined, owner-friendly, specs look like. People who have built before under stand this and perceive the value. As I mentioned in the column, clients who don't get the fully completed plans and specs concept probably have other issues that will cause problems for their contractor further down the road.