Sample commercial contract

      Example of a woodworker's contract for a bid job. January 28, 2002

Q.
Could someone share a sample commercial contract for a bid job? Any hints on the technical details of what to include? We have used estimates and a request for signature/approval on that, but need something more detailed.

Forum Responses
This is a rough draft of our new contract. Any comments are welcome. Some of the info here was taken directly from another contract that was posted recently.

Business name
Mailing address
Phone number
Fax number
Web site

TERMS AND CONDITIONS

Terms and conditions as stated herein become a part of our quotation and will apply to the acceptance by [company name] (herein known as ___) of your order. All terms and conditions expressly specified herein shall render null and void any conflicting terms and conditions in any and all other contracts relative to this proposal.

1) Quoted prices are valid for 30 days. Project scheduling will begin upon receipt of 50% fabrication deposit. No work will be scheduled prior to receipt of 50% deposit for any reason.

2) Prices do not include NJ sales tax. NJ state sales tax will be applied to all projects unless other arrangements have been made.

3) Unless specified otherwise, all work performed by ___ will conform to the guidelines set forth by the Architectural Woodwork Institute (www.awinet.org) for Premium Grade Cabinetry.

4) Design deposits or fees will include one 2D black and white line drawing or one 3D color rendering as specified on the proposal. The design deposit or fee will include one review and revise session with one re-submittal of drawings or renderings. Additional changes to the design or concept will be billed at $100 per hour. Design deposits do not include shop drawings unless otherwise stated; shop-drawing costs are included in the production budget. Shop drawings will not be produced until: 1) the design concept rendering has been approved and 2) the 50% production deposit has been received. Design deposits will be applied toward the 50% production deposit. All jobs include a design fee unless detailed drawings and specifications have been supplied prior to price quoting.

5) Shop drawings will include the following: Elevations, cross sections and plans that will identify all critical dimensions, chosen appliances/electronic components, hardware and special features. If it is not shown or addressed on the drawings or submittals provided, then ___ has not agreed to supply it. All shop drawings and product samples must be signed, dated and returned before ___ will proceed with the manufacture of any project. Any detail pertaining to cabinet construction and installation that is not specifically discussed and documented will be performed at the discretion of ___. The shop drawings will include one review and revise session with one re-submittal of drawings. Additional changes to the shop drawings will be billed at $65 per hour.

6) ___ís finishes are among the most consistent available. Our multiple step technique combined with the careful selection of color matched woods and veneers ensure that the finished project will be as consistent as possible. However, since the properties of wood are not consistent themselves, we cannot ensure that each part of the project will look exactly alike, nor can we guarantee that the project will exactly match the initial sample. Therefore, ___ does allow for a range of color on its finished products. This acceptable color range may sometimes span several shades above or below the average shade for a stain/specie combination. Variations may also occur in hand applied paint finishes such as pickled, ragged, glazed, crackle, etc., these variations are normal. Each project is entitled to one custom-made finish board, additional boards will be created on a time plus material basis with a $100 minimum charge. All finish samples must be signed, dated and returned before ___ will proceed with the finishing stage of any project.

7) Correction of Work: After the contract is substantially completed, a representative from ___ and the customer/customer's representative shall jointly inspect the work and a single list (punch list) shall be prepared identifying all work to be completed or corrected. There shall be only one such written list of work identified to be incomplete or incorrect, and the customer/customerís representative shall sign the list. ___ shall then expeditiously complete all work stated on the punch list for which they are responsible in the terms of this Agreement. The customer/customer's representative shall not contract with any alternative contractor for the performance or completion of work within the scope of the Agreement, nor shall the customer/customer's representative claim a credit or back charge for the cost of completing an item stated on the written punch list, nor shall the customer/customer's representative occupy or use the stated work until and unless ___ is first given reasonable notice and opportunity to correct the work stated on the punch list referred to above. If the customer/customer's representative does contract with an alternate contractor to perform the punch list work or otherwise completes the project without first affording the above-described opportunity to ___, or if the customer/customer's representative commences to use or occupy the space or work in which ___ performed work, the customer then agrees to accept all work "as is" and thereby waives any claim against ___ under the terms of the Agreement, including warranty claims.

8) Warranty: It will be the responsibility of ___ to insure that all material, products and taxes relating to the customer's project are paid and that there will be no potential lien claimants after the customer's final payment has been made to ___. All work shall be performed in a professionally reasonable manner and there will be no defects in workmanship, as defined by AWI. Materials or hardware used by ___ or its subcontractors shall be warranted only to the extent that the suppliers or manufacturers of those products provide a warranty. In the event that a defect is discovered in one of these products, ___ will assist the customer in securing a replacement or repairing the products for the duration of the product manufacturer's warranty. Warranty on the workmanship and material shall be for a period of 12 months from the date of the contract; unless otherwise specified in the material or supplier's warranty. ___ will perform all necessary labor to repair or replace all defective work at no cost to the customer, and will expeditiously act in good faith to secure replacement products or materials under warranty of products or services. Any claim or cause of action arising out of the terms of the contract or warranty must be filed in a court of competent jurisdiction within the period of the warranty previously stated. Any warranty work performed during the warranty period does not extend the warranty any further than was previously stated in terms of the time from the date of the contract. All aspects of this warranty are void if a person or company other than ___ performs or re-performs any work within the scope of the warranty. The following are excluded from warranty by ___: a) Movement or misalignment of cabinets due to settling or movement of foundation floors, walls or ceilings. b) Damage to woodwork, finish, or any defect due to exposure to excessive moisture, heat, humidity, or cold. c) Wood movement, raising of grain, or any other problem or defect arising from exposure to moisture at the customer's job site if cabinets or woodwork are delivered unfinished or unsealed. It is the responsibility of the general contractor or customer to insure that all products ordered from ___ comply with all local codes relating to other subcontractors whose work affects ___ products, i.e. (framing, plumbing, electrical). The warranty will not include any changes or alterations necessary to conform to such codes.

9) ___ is not responsible for any plumbing, electrical, flooring, painting, decoration or other construction work unless specifically stated in the design specifications and construction details that are part of this agreement. ___ will not be held liable for reasonable damage to paint, wallcovering, floorcovering and ceiling materials associated with the installation of custom millwork. The customer should provide a

10) Storage and handling charges will be applied to any and all projects undeliverable for more than 30 days due to delays caused by the real property owner, architects, interior designers, contractors, service people, vendors or any other source not including subcontractors, vendors and suppliers hired or paid directly by ___. Storage charges are assessed at $ .75 per square foot, per day, 7 days a week. Handling charges are assessed at $65 per hour. Charges will apply to all projects at any point during the fabrication process beginning upon delivery of raw materials. Charges will apply until projects are delivered or fabrication has commenced, re- scheduling for delivery or fabrication will be dependent upon ___ís workload at that time. Charges will be invoiced monthly and will be due prior to delivery or installation of any projects. Projects delivered to a site and not installed due to delays by others will be subject to full payment minus the cost of installation as determined by ___ at its sole discretion.

11) ___ does not guarantee any shipment or delivery date. Any time or date stated herein or otherwise identified by ___ or any of its agents or employees for shipment or delivery is intended as an estimate only. Accordingly, ___ shall not be liable for any damages of any nature whatsoever arising directly or indirectly out of a delay in shipment or delivery.

12) Account balances not paid within 30 days of invoice date will be charged a finance charge of 1-1/2% per month or the maximum permitted by law and a $25 late fee. All returned checks, for any reason, would incur a $50 handling charge plus bank fees, per occasion. Projects with, for any reason, past due balances, partial payments, returned checks, etc. may be delivered and or installed on a pre- paid basis at the sole discretion of ___. Any hold back or retainage shall be paid within five days of the completion of the original punchlist items. No claims will be accepted on accounts with unpaid balances.



I like your wording on design fees, which I have been struggling with. Most clients are easy, but the last 2 I had, change, change , change. I swear I spent more time drawing than I did building. On large projects I will not start drawing till I have received a 50% deposit and on all jobs a list of appliances are required before I begin designing. One thing I do a little different. If, after receiving deposit and presenting drawings to clients, they select another (cheaper) cabinetmaker, I retain 10% of total contract amount from deposit for designing and supplying drawings.

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