An Electrical contract is an important piece of document that serves as a legal service agreement between the electrician and a building contractor or a homeowner. Important aspects related to an electrical project such as project’s terms, the project’s start date, associated fees and costs, and an official statement to perform all work as discussed are covered within the electrical contract. The electrical installation agreement is a contract and serves as a legal document in case of lawsuits or problems that may arise from the project. It is always a good idea to have legal documents reviewed by an attorney before signing. Whether you are a building contractor or a homeowner that needs electrical services, it is essential for you to make sure that there is an electrical agreement contract before you allow any activities such as electrical repair work or electrical installation work to be performed at your premises. In this post you’ll find the 10 easy steps to write electrical contract professionally or how to write proposal for electrical contract.
Making an electrical contract agreement with the electrician that you will be working with can help you a lot when it comes to ensuring that you can set the scope of the electrical needs of your space and the deliverable that you would like the electrician to provide you with are met exactly as discussed before the project was started. If you do not know how to write electrical contract then in this post you will find several tips and examples to write an electrical contract that will protect both an electrician and other party involved. Remember, electrical agreement contract document is very important before you choose to work with an electrical contractor as it outlines the agreement between owner and electrical contractor.
How to Write Electrical Contract?
Table of Contents
Generally, an electrical contract covers agreed upon terms with the electrician, scope of work, terms and conditions, costs and fees, start date and signed by both parties involved. It is always a good idea to get an electrical contract reviewed by an attorney but if you do not wish to pay an attorney for his/her services then there are several readymade electrical contract templates and electrical contract samples from examples.com and pandadoc.com that covers all the necessary details and electrical terms and conditions and you can simply download an electrical services contract and make changes to prepare a professional electrical contract agreement.
10 Steps to Write an Electrical Contract Successfully
1. Identify both parties involved: Electrical contractor and the Customer
The first step when writing an electrical contract is to identify the electrical contractor and the customer. In order to effectively identify both the parties involved, create spaces for the name of electrician and the individual or company who will be hiring the contractor in the electrical services contract. Mention the contractor by stating his/her name, followed by the term ‘Contractor.’ Mention the name of the individual hiring the electrical contractor with his/her full name and the term ‘Employer.’
2. Define the Scope of Electrical Project – List the work involved
Define the scope of the electrical project which basically means what needs to be done whether its electrical installation work or electrical repair work. The first section of the electrical contract should explain exactly the type of electrical work that will be performed, identified as ‘the Works.’ You should write this as a paragraph or as a bulleted list. The list may include information such as: rooms in need of electrical repair or wiring; specific machines or equipment that require electrical repair; fuse box modification or repair work; and other wiring projects. When you write electrical contract, defining the scope of electrical project comes on top as it specifies the work involved.
3. Identify the Plans and Specifications and the Location
If the project should be one that will require the electrician to consult the blueprint or specifications that will not be listed in the agreement, make a statement after the “Works” section about their location. This component explains the location in which the electrical project will take place. It should include the property’s address and the name of the owner or person in charge of the property.
Explain where the electrical project will be carried out. Indicate the property address, and the name of the contact person in charge of the property.
4. Mention the Payment Schedule
State the payment schedule. This section states how much the electrical contractor will be paid, when they will be paid, the sum and invoice terms. Some electricians charge per hour of work while others charge per project. This section should also include any expenses that the project owner will need to pay for. Mentioning payment schedule when you write electrical contract makes it clear for both the parties to understand the payment terms and schedule of payments.
5. Completion Dates and Schedules
Listing completion dates and schedules is very important part of an electrical contract. The specific date when the electrical project is to be completed should be outlined in this section. Some electrical contract agreement include the caveat that the contractor will not be responsible for delays outside of his control.
6. Safety Protocol Section
This section is extremely important part when writing an electrical contract as it specifies the electrical contractor’s safety protocol and statement of intent. It should specify that the contractor will use his skill to the best of his ability, show diligence and care when performing the work. You may also include the contractor’s satisfaction guarantee and other information about the quality of the work performed.
7. Indicate Responsibility for Losses or Damage
In any electrical contract work at times, there may be an unforeseen circumstance that lead to losses or damages. That is why you should specify a liability protection. This component specifies who will have to pay in the event of a loss or damage at the site or even in cases of injury to the contractor that came as a result of working on the site. Also the electrician’s insurance information should be added here.
8. Mention Who Will Pay for Licenses and Fees
In this section you have to specify who will take care of the fee for licenses and other such expenses. This should be a between the two parties on who will foot the charges for the licenses or fee expense that may arise during the course of the electrical project.
9. Create a Signature Section
Provide spaces for signatures and contact information. At the end of the page, there should be spaces where the two parties can sign and leave contact information. Ideally, this section with the terms, “In Witness Whereof, the parties have signed this Agreement on this day and year as indicated in this contract and agreed to all terms.”
A space should be created for the name of the two parties, signature, address and phone. List the names of the contractor and employer, leaving spaces for signatures, addresses and phone numbers.
Typically, an Electrical contracts agreement in the US is about a page or two. However, a photocopy of the electrician’s insurance card can be added to the contract.
10. Factors and Elements to Look Into When Making an Electrical Contract
When making an electrical contract or any other business documents, there are some things that are very important to be considered as they can affect the successful usage of the document in the long run. If you plan to create an electrical contract, you have to familiarize yourself with the factors and elements that can impact the development of the specified document. Some of these include the following:
- Set the limitations of the responsibilities of the electrician. You have to make sure that the electrical contract will contain a statement that can specify all the limitations of the electrician’s capacities especially when dealing with circumstances that he or she do not have a control of.
- List down all your plans of action. There should be clarification with the timeliness of your work processes so that particular time frames can be set. This is very important especially if you are involved in a big project where your processes must also be aligned with out construction works and activities.
- Have a bullet list or outline of all the specifications of the project. As an example, you need to create a checklist for all the areas of the construction site where particular electrical services and repairs are needed to be done. You also have to be specific with the kinds of electrical works and/or modifications that are needed to be executed.
- Be specific when discussing who is responsible for the electrical fees outside the payment for the electrician or the contractor. Examples of these are the electrical licensing fees and all the expenses that are needed to purchase or rent equipment and materials.
- Whether you are writing an electrical wiring contract or a residential electrical contract, keep in mind the above point when you write electrical contract. You can find a readymade electrical contract format at eforms.com.
Benefits of Using an Electrical Contract
Creating an electrical or any other types of business contract and agreement documents is a task that you have to be serious about and you should pay attention to the contract details. Even if a lot of your time and effort will be used in the development of these documents, you have to remember that there are particular benefits that you are up for which is why you are willing to undergo the processes of creating the particular contract or agreement that you need. To give you motivation when you have already decided to start making your own electrical contract, here are some of the benefits that come with the usage of an effective electrical contract:
- An electrical contract can help you have an in-depth specification of the terms of the electrical services agreement. This can allow you to explain the entirety of the transaction from the identification of the starting date of electrical services provision up to the particulars of the payment aspect of the electrical activity that the client have acquired. Being able to come up with a comprehensive electrical contract can be very helpful as it can guide the actual processes of the transaction that all stakeholders must follow.
- An electrical contract can allow you to have a reference with regards the agreement that you have made with the entities who need your expertise. The electrical contract serves as an effective legal document that not only binds entities together but also lays all the items that can be used as evidences in any case of disputes, problems and/or lawsuits occurrences during or after the construction or electrical project.
- An electrical contract can contain the official statement from your business that you are willing to perform all the minimum work specified and discussed within the actual electrical contract. Ensuring that you are fully aware of your obligations and responsibilities can help you develop a timeline that can make the execution of work process more organized, detailed, and efficient. With this, you can easily allocate your resources that can benefit not only the clients but also your business.
- An electrical contract can provide a thorough understanding of all the needs and demands of the transaction. With the usage of an efficient electrical contract, you can list down everything that you need from the requirements that you need to acquire up to the finishing touches and evaluation processes that you must execute to ensure the safety and effectiveness of your output.
Who is an Electrical Contractor?
Electrical contractors are those that hire a certain group of workers who are experts from the electrical background. These contractors take care of concealed house wiring of the entire property and install plug points where the need be. An electrical contractor will take up contracts for residential/commercial complexes and government offices even. The contractors charge their clients on the basis of the labor been used and the time and efficiency their electricians put in. The electrical contractors hold licenses and insurances to properly and safely operate a business. Every contract is allocated their own specific time period.
Roles and responsibilities of electrical contractors in the US
Electricity is essential for every household and commercial space. Bad electricity connection can lead to short circuits and fuse faults. Availing solutions from electrical contractors in the US is imperative to ensure the premises has a good electrical circuit. Electrical contractors extend their services for appliance repair, repair of wiring connections, maintenance and installation of appliances, and more.
Difference between electricians and electrical contractors
Electrical contractors in the US perform similar job responsibilities as an individual electrician however, there is some difference between the two. One of the major differences is, an electrician is an individual who handles various electrical works such as repairing appliances, inspecting the wiring connections, and more. On the other hand, electrical contractors extend their services through a team of electricians. Both hold licenses and insurances.
Roles and responsibilities of electrical contractors
• Installation of electrical equipment and meter base for commercial and residential building components.
• Thorough inspection of electrical lines and connections to detect any potential damage.
• Provide consultation and electrical connection query solutions as and when required.
• Repair complex wiring and heavy electrical appliances such as generators, inverters, etc.
• Offer consultation for electrical infrastructure. Builders and contractors work closely with electrical contractors when planning a new architecture.
• Electrical contractors offer solutions for better energy saving and adequate use of electricity.
• Solutions such as earthing, voltage control and more are offered by them.
Cost of hiring electrical contractors in the US
The prices of electrical work depends on the services that you require, the electrical contractor you are considering and your location. Other factors according to which charges may vary depending on the cost of raw material, electrical supplies, and services charges. The following are the approximate prices for hiring electrical contractors for various services in the US.
|New Wiring Installation||$1,100-$15,000|
|Upgrade electrical circuit||$1,200-$3,500|
|Computer networks and wireless installations||$1,200 to $2,000|
|Basic light fixture installations||$80-$200|
|Ground rod installation||$2,300|
|Breakers and electrical panel installation||$100-$1,500|
|Labor per hour||$40-$120|
How to Write a Legal Contract Agreement without a Lawyer?
Frequently Asked Questions
1. Do electrical contractors in the US accept long term work contracts?
Yes, most electrical contractors accept long term work contracts however, they are willing to accept regular work as well. It depends on what services you require and if an electrical contractor has enough resources and man power to work on long term contracts.
2. Do electrical contractors accept regular electrical inspection work?
Yes, electrical contractors in the US can be hired for regular inspection and minor electrical work, however, not all contractors may be willing to work on minor works such as fixing a switch, repairing an appliance, etc.
3. Do electrical contractors only accept commercial assignments?
No, electrical contractors work on projects for commercial as well as residential premises.
4. Do electrical contractors offer earthing solutions?
Earthing is transferring immediate discharge of electrical energy directly to the earth with the use of a copper wire and is done to secure a building from lightening. Electrical contractors in the US do accept earthing work but it depends on the location and their expertise.
5. How much do electrical contractors charge?
Their service charges depend on the nature and volume of work and location. It is best to get a quote before hiring an electrical contractor. If you are California then you pay more compared to a homeowner in Alabama.
Electrical works are an important part of our daily life: be it a new construction project, a maintenance project at office premises or fixing something at a private household. The world, including computers and the Internet, is powered by electricity, and so there will always be a need to hire a reliable and skilled electrical contractor.
To ensure the best performance and to protect both parties, it is recommended to sign an electrical contract template, which would include the full details of the parties, the scope of work, the list of expected duties, project milestones, payment terms as well as the responsibilities and the liability of each of the parties.