Providing a Service? You Need a Contract!

[grasshawg]

This is to provide a little helpful information to stress the need for professional pressure washers to have a contract signed before performing any work.
I had a verbal agreement and a handshake to wash 2 trucks 25 miles away every week. Nothing major. Just $65 each. That was what we agreed on.
I had never washed both of them. Only one. Never even saw the second one. I kept quiet about it, thinking the other driver had decided not to go along with the agreement. ( I think it was done without the knowledge of his dispatch office.)
He called me one Saturday to say that his truck had blown a hydraulic hose, and had to go to the shop. Had to cancel. Still no problem, because as a former truck driver myself, I understand how those things can happen. But he told me DEFINITELY next weekend. Last weekend was that weekend. I called him twice during the week trying to verify anyway, but he never returned my calls. I was busy all day on the next Saturday on a remote job in the logging woods, so I called him once more to tell him after church on Sunday, I would be out there washing unless I heard from him. Still nothing. I went there on Sunday afternoon, and there was no truck on the premises. 50 miles round trip for nothing.
I left an invoice on the front door for $25 travel pay. Haven't heard from him all this week. I tried to call both his cell phones, and left messages, and still nothing. So, at the nearing of the business week, I looked the home office up on the internet, and called his dispatch to tell them my story.
Apparently, they called him and gave him a good chewing out. He just called about 10 minutes ago and told me what I could do with that $25 invoice. (I expected that.)
If we had started this thing with a contract agreement signed by both parties, this never would've happened.
I'm not out very much $$$. It was pretty much a waste of time truth be known. Unfortunately, the days of a man's word and a handshake are long gone.
This is not a whining post. I've taken my lumps and come away with a better understanding of the world of doing business. Hopefully some of you who are not using contracts will read this and avoid having the same problem.
Randy

 

[steve r]

This is to provide a little helpful information to stress the need for professional pressure washers to have a contract signed before performing any work.
I had a verbal agreement and a handshake to wash 2 trucks 25 miles away every week. Nothing major. Just $65 each. That was what we agreed on.
I had never washed both of them. Only one. Never even saw the second one. I kept quiet about it, thinking the other driver had decided not to go along with the agreement. ( I think it was done without the knowledge of his dispatch office.)
He called me one Saturday to say that his truck had blown a hydraulic hose, and had to go to the shop. Had to cancel. Still no problem, because as a former truck driver myself, I understand how those things can happen. But he told me DEFINITELY next weekend. Last weekend was that weekend. I called him twice during the week trying to verify anyway, but he never returned my calls. I was busy all day on the next Saturday on a remote job in the logging woods, so I called him once more to tell him after church on Sunday, I would be out there washing unless I heard from him. Still nothing. I went there on Sunday afternoon, and there was no truck on the premises. 50 miles round trip for nothing.
I left an invoice on the front door for $25 travel pay. Haven't heard from him all this week. I tried to call both his cell phones, and left messages, and still nothing. So, at the nearing of the business week, I looked the home office up on the internet, and called his dispatch to tell them my story.
Apparently, they called him and gave him a good chewing out. He just called about 10 minutes ago and told me what I could do with that $25 invoice. (I expected that.)
If we had started this thing with a contract agreement signed by both parties, this never would've happened.
I'm not out very much $$$. It was pretty much a waste of time truth be known. Unfortunately, the days of a man's word and a handshake are long gone.
This is not a whining post. I've taken my lumps and come away with a better understanding of the world of doing business. Hopefully some of you who are not using contracts will read this and avoid having the same problem.
Randy

I never do anything with out a contract and a cost plus on some things .A trip fee ya charged is good just for your time to go there .

 

[Larry L.]

Don't judge all by one bad apple,I still do it the old way without any problems,if I have to have a contract to force them into something I don't want their business.

 

[5 Star Johnny]

if I have to have a contract to force them into something I don't want their business.

Larry, this is one of the few times I disagree with you. Since our inception, we have contracted EVERY job we've done whether a $50 job, or a $5,000 job. I can remember possibly 4 or 5 jobs without a contract which were a job "add on" at the site of original work.

Overall, if we're suppose to be representing our industry as professionals, contracts are an integral part of that. In this litigious society, it protects both parties. Properly drafted, a contract will ensure that the client is getting what they paid for, and that the contractor doesn't get pushed into doing more than what was agreed upon. I believe it also gives the client peace of mind knowing that they're dealing with a professional "contractor". Not the local "handyman".

Spring is here.....YIPEEE!!! Starting decks in 2 weeks and will soon be 6-7 days/week. Can't wait!! See ya' all!!

 

[goatroper]

Ageed, John. After all, this business is classified as "contract" cleaners. Not "handshake" cleaners, or "we'll see" cleaners.

If a customer is unwilling to enter into the simplest of contracts, don't be upset if you get jerked around later. I always have a written agreement, ie contract, for all work orders. My vendors know exactly what I expect, and I know exactly what they will perform. Sure, there will be add-ons and the "friend of a friend" thing, but neither party should be unwilling to execute an agreement. After all, you sign a contract every time you rent a movie, use your credit card, write a check, etc. Contracts don't have to be like a real estate / new car / DOD contract; just a who / what / where / when / how much $$ written agreement.

I agree with Larry: a handshake business would be great. But gas used to be $1 / gln, gold was $100 / oz, and you could trust a handshake -- 25 years ago.

 

[johnny]

Never had a truck wash contract, never needed one in 10 years. Reason: I found that once in a while I found a customer I wanted to "fire". Without a contract this was much easier to do. Contracts work against you in my case. Randy even with a signed contract it wouldn't have been much different. The guy was unreliable as a customer and should have been let go. You'd be lucky to collect on it even if signed.

 

[drivewaysonly]

I prefer a hand shake to a contract myself. For the same reasons already listed.

 

[5 Star Johnny]

Back in the "good ol' days" when "a man's word and a handshake meant sumpthin'", that might have been OK! If you're not conducting your business with contracts, you're not operating a business!!

Reason: I found that once in a while I found a customer I wanted to "fire". Without a contract this was much easier to do.

Johnny - If you wrote a contract appropriately, you can still "fire" EACH OTHER, without harm or cause to either party. In either case, if you don't have a contract, someone may have more leverage than the other.

GUYS/GALS - This is Business 101:NOBODY IS YOUR FRIEND WHEN MONEY'S INVOLVED. If you believe otherwise, you're naive and waiting for a lawsuit. It may not be the person you "shook hands with". It will be their Insurance Carrier, Lawyer, Business Partner, Wife, Trustees, etc.; etc.; etc.;!!!! Wake up and smell the mildew. Agreements protect EVERYONE involved. If you're runnin' a business......RUN IT! If it's a HOBBY.......try NASCAR!

 

[Larry L.]

I like my freedom to roam when ready and not when someone tells me to or when to do it.I have fired several of my accounts and hire them back if I'm feeling on the good side.When someone starts pushing a pencil for me to sign my name I get cold feet real fast and think of something better to do.

 

[johnny]

5 star johnny,

In 10 years - we have never been stiffed by a truck wash account. Knock on wood! We have always kept to our part of the deal and the customers their part. I don't want the customer to feel like he is locked into anything. When we show up to do the jobs they have trusted us to complete the deal. No amount of paper is going to make me work any more or less. If they request a contract ala company policy we have obliged - but only after explaining how we feel about it. Some companies have been burned by truck washers in other towns and want a guarantee we won't screw them.
Oddly enough, we had one restaurant stiff us for hood cleaning even with a signed agreement. He closed his doors and left town. I won't go hungry over $400. Neither should anyone else.
It's the way we chose to do business and it has worked.

 

[drivewaysonly]

It's the way we chose to do business and it has worked.

Kudos. Funny, some stranger on a forum telling me how to run my business. If it's all the same, since I pay all of MY taxes, I'll run it how I see fit. Now, if you want to come onboard and have a posistion OVER me, then i might need to sit down and let ya tell me how to do it.

I am sorry our world has surpassed the era where a mans word is gold...but it still is in my neck o' the woods. Nothing's perfect but I like it how it is and it's gonna stay that way. If I say I am comming, I'm comming. If, whatever reason you decide to screw me, I'll get over it.

As for hobbies...I enjoy my work enough to do it for free.

 

[grasshawg]

Well, I didn't mean to stir up such a hornet's nest. I just thought I'd share my experience.
Drivewaysonly, I don't think Johnny meant anything by it. He was just giving his opinion like everyone else.
IMO, we shouldn't be operating without a contract. Based on my experience, which isn't much, mind you, I will from now on. Certain things work for certain people. Not so much for others.
Hobbies? I'll fish and hunt for free. Everything else costs $$$!
Randy

 

[drivewaysonly]

I re-read my post...I am actually giving the kudos to Johnny....I dont do contracts either sop he and I are on the same page. Kinda hard to tell that by the way I posted...anyway...no harm done.

 

[Scott Stone]

I don't do contracts for commercial accounts. I have not had many problems with this system, although this weekend I had to fire a customer.
Here is the story;
I agreed to a basic cosmetic wash of his trucks. There are 9 of them, which is my smallest account. He agreed to have them washed every other Friday. We went and washed them the first week. They were in fresh from the midwest and had not been washed in at least 6 months. We busted a hump and washed them. He requested that we wash the roofs of the day cabs. For this type of wash we don't typically do that, but, I agreed to do it the next time we came out.
The next wash was cancelled. It looked like it might rain within a couple of days of the wash. It didn't. I had to postpone a week which causes my schedule all sorts of problems. I do run a tight schedule, especially on the weekends.
So I go after having postponed it for a week, and wash the trucks. One of his trucks nearly runs me over leaving the yard. (this is not high on my list of making you my favorite customer) The driver was not back by the time we were finished, so we left. I had other trucks to wash. About three hours later I get a call saying we missed a truck. Yeah, we did. The driver left while we were there. Wanted us to come back and wash it for the standard charge. Uh, I don't think so. Oh, and how come you did not degrease the engine? Not part of the service. How come you did not wash the 8 forklifts on the back of the trucks? I was never told to wash them, and never gave you a price. This guy felt it should have been included, along with everything else.
He got fired.
All of this for a grand total of $160. (for what it is worth, this job only would take us about an hour. So I was not lowballing)

ALmost makes you want to reconsider teh contract thing.

 

[north coast]

If you promised him that you would fire the guy that washed them, refunded his money, rewashed them for free and shoot the field manager would that have made him happy? It is my experience that owner-ops are USUALLY the pickiest people. We had one guy want his truck washed on one Thursday afternoon after 5:00 PM. The next day we had a mild snow storm and one week later when he gets the bill in the mail he claims the truck was never washed had a whole grocery list of things wrong mirrors dirty back of the cab was missed. We also had another small guy with a fleet of (this is he claims) 5 tractors and 10 trailers but every time we went we only got 1 - 2 tractors, then on top of that he was always trying to get our guys to wash them for cash he would even call them direct to get them washed on weekends. There are some of those people out there but a few bad apples does not spoil the bunch.

 

[5 Star Johnny]

I'm not trying to sound like a smarta@!#*, but you guys are actually presenting a good argument for having a contract. If you spell everything out on paper as to what service is being provided, for what price, you wouldn't have these negative interactions.

Oh well!!

 

[5 Star Johnny]

Fellow PW's. Just wanted to apologize if I insulted anyone. I realize I get a bit "passionate" when it comes to issues I believe are vital to running a professional business. There are sooooo many "hacks" that believe draggin' a washer around in the backs of their Ranger classifies them as a business, that I get a bit offended sometimes.

Looking over the previous posts, I still believe you are presenting good arguments for having agreements. ESPECIALLY with commercial accounts. ANY agreement can be properly worded that offers protection for both parties, yet gives you (let's say) a "writ of notice" (30-45 days or whatever) so if expectations aren't being met on either side, you can jump out. Additionally, it spells out what the specifics are so that you don't run into the "Hey, you said you would do this, this & this for this much ($$)", when what you really said was "We will do this & this for this much!" If you choose to do extra work for nothing to satisfy your client, that's your business. But how many of you end up doing extra crap grudgingly just to avoid a conflict and make sure you get paid?

Roughly 70% of our work is residential (deck, siding, cement) and we have contracts with every single one of them. I have NEVER had one even question this. We receive deposits with our contracts and collect the balances on-site when the project is complete. Never been stiffed once! I firmly believe that the homeowner is more confident knowing their dealing with a professional contractor and are happy to have an agreement that protects everyone involved. Depending on the State you operate in, a verbal agreement is still a binding contract. However, a written document is going to stand stronger if there's a dispute. Otherwise, it's "he said...she said".

I have had commercial accounts tell me they are not allowed to sign an agreement - corporate policy. Keep in mind, we do not maintain long term accounts with any corporations at this point. Our agreements are for a single project, or short length of time. I explain that this agreement is not locking anyone in, just protecting both parties, and that we will not step foot on a project without one. They sign it!

A couple of you mentioned you have more freedom without a contract. Why couldn't you introduce your "flexible" schedule in your agreement? Seems to me that would help in avoiding any misunderstandings. Couldn't you spell out that if the regular wash schedule is Saturdays, but it's raining, we will return on an alternate day? Couldn't you spell out that if your (customers) units aren't at the site by such & such a time, they will have to be cleaned on the next interval, or can be washed individually at a different rate?

Again, I apologize if I offended those of you who choose to do business differently, and have had success with a handshake operation. If that works for you, great. I will only add that I believe you are exposing yourself unnecessarily. My opninons on these types of issues are more for the newer or less experienced contractors who may benefit from the input. I am proud of our industry, especially what our company has done in our market to improve the perception of PWing. If I think I can help another contractor advance their business and improve the image of our industry.......I'm gonna' give my 2 cents!

Good Luck everyone!

 

[Larry L.]

I have not seen where you insulted anyone,only good advise.

However some contacts aren't worth the paper they are writen on when it comes to a hardnose account wanting more for their money.

I use the word "depends" alot,all my fleet accounts have two prices and some three different prices.I do not get into I have 50 tractors and 200 trailers how much will you wash them for.My first answer in something like this,you write me a check for 50 and 200 each week and the price is so and so,if not its so and so and so and so.The same truck I wash this week may be at a different price when I wash it again whether its the next week or whenever,depends.

I can see where your type trade needs a contract whereas some accounts do not know you from adam or the splash and dash guy.Fleets are alot different in most cases b/c of word of mouth from other fleet owners whereas if your word and work is worth a flip or not.I always check out accounts before I go to the trouble of dealing with a new account,word of mouth of what type person goes along ways both ways.Plus all my accounts knows if the check isn't in my hand before the next wash they do not get washed until paid,its understood I run my business not them.

I see no harm in having a contact even when it comes to having your car washed at a carwash.

 

[Vince J]

Hi Johnny,

I have been pressure washing a little less than a year now, still very green I'm sure. It seems to be working out for me so far. This network is very helpful to me and I appreciate all the information given so thank you much. I do not presently have a contract format, would it be possible for you to send me a copy of one of your contracts so i can get a clearer idea of what mine would need to look like. I have asked others but with no luck. I would very much appreciate anyway you could help me out. Thank you - Vince

vincentjaramillo@yahoo.com