JUDGE1162
ArboristSite Operative
I do have some contract background and write about 10 estimates, 5 or 6 proposals, and 2 or 3 contracts a day.
1. They are all diffrent an estimate is just that an estimate and is no way the finial price of a job, most estimates are written on a time and materials rates with an estimate in the amount of time it will take. This happens a lot with car repairs I estimate it will be $300 and it is $400 when you go to pick your car up because it took longer then they expected or they had to do more work then they expected. They have to get your approval for the extra fees by law in many states but in most cases if you do not approve the repair you still get charged the $300 plus the car still does not run.
2. A proposal is the next step up it says you agree to do a certian job for a set price, may also include a time and materials rates for extra work, example I agree to remove 5 trees for $5000 now no matter what happen you can only charge $5000, however if you need to remove 3 small trees to get to the 5 bigger trees, or if the owner wants the stumps ground, or anything else now you can charge extra money on a time and materials rates.
3. Both an estimate and a proposal are NOT contracts, they can be turned into contracts if both parties sign the estimate or proposal stating that you both agree to the terms of the estimate or proposal. A contract can be a stand alone document which now takes the pricing from an estimate or proposal and list them and all the terms and conditions. This is your best bet in most legal cases you first send a proposal for the work plain and simple do X work for $X, you can mail it to them ro fax it, if they agree tell them that a day or two before the works starts you'll stop by with a contract this is where all your terms and conditions are (i.e. you are no responsible for destroying their garden, their lawn, ect.; whatever your payment terms are and any late fees, what exactly is included in that price and if any basic things are not spell them out (hauling logs, stump removal, mulch and chipping disposal, removal of extra trees, grind stump to 5 inches not 8 inches, ect) your work hours and schedual (ie we do not work on sunday or we will be here at 8 am on saturday, we don't work in the rain, etc.)
So long story short, an estimate is not a contract until you turn it into one, which does not seem to be the case here, unless both parties sign the document it is not a contract. I sign every single proposal or estimate I send to someone it is not a contract until they sign it and return it to me. Also you are not bound by an estimate or a proposal until it is a contract, you can say sorry not interested in the job anymore, not the best business practice but it is legal.
You should include expiration dates on your proposals or estimates, even though they are not legally binding contracts it is just good business to tell someone how long they have to agree to the price and start the work (this is important too) you will get people who will sign a contract within you time period but will hold up starting the work, it has happened to me I agreed to a job then waited close to a year to start the job, because we had a signed contract and it did not limit the time frame to start work I got stuck doing a job at last years rates. My contracts now state that the work must start within 45 days on the signing of the contract of the pricing will be adjust for new costs.
1. They are all diffrent an estimate is just that an estimate and is no way the finial price of a job, most estimates are written on a time and materials rates with an estimate in the amount of time it will take. This happens a lot with car repairs I estimate it will be $300 and it is $400 when you go to pick your car up because it took longer then they expected or they had to do more work then they expected. They have to get your approval for the extra fees by law in many states but in most cases if you do not approve the repair you still get charged the $300 plus the car still does not run.
2. A proposal is the next step up it says you agree to do a certian job for a set price, may also include a time and materials rates for extra work, example I agree to remove 5 trees for $5000 now no matter what happen you can only charge $5000, however if you need to remove 3 small trees to get to the 5 bigger trees, or if the owner wants the stumps ground, or anything else now you can charge extra money on a time and materials rates.
3. Both an estimate and a proposal are NOT contracts, they can be turned into contracts if both parties sign the estimate or proposal stating that you both agree to the terms of the estimate or proposal. A contract can be a stand alone document which now takes the pricing from an estimate or proposal and list them and all the terms and conditions. This is your best bet in most legal cases you first send a proposal for the work plain and simple do X work for $X, you can mail it to them ro fax it, if they agree tell them that a day or two before the works starts you'll stop by with a contract this is where all your terms and conditions are (i.e. you are no responsible for destroying their garden, their lawn, ect.; whatever your payment terms are and any late fees, what exactly is included in that price and if any basic things are not spell them out (hauling logs, stump removal, mulch and chipping disposal, removal of extra trees, grind stump to 5 inches not 8 inches, ect) your work hours and schedual (ie we do not work on sunday or we will be here at 8 am on saturday, we don't work in the rain, etc.)
So long story short, an estimate is not a contract until you turn it into one, which does not seem to be the case here, unless both parties sign the document it is not a contract. I sign every single proposal or estimate I send to someone it is not a contract until they sign it and return it to me. Also you are not bound by an estimate or a proposal until it is a contract, you can say sorry not interested in the job anymore, not the best business practice but it is legal.
You should include expiration dates on your proposals or estimates, even though they are not legally binding contracts it is just good business to tell someone how long they have to agree to the price and start the work (this is important too) you will get people who will sign a contract within you time period but will hold up starting the work, it has happened to me I agreed to a job then waited close to a year to start the job, because we had a signed contract and it did not limit the time frame to start work I got stuck doing a job at last years rates. My contracts now state that the work must start within 45 days on the signing of the contract of the pricing will be adjust for new costs.
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