We may earn a commission for purchases through links on our site, Learn more.
An electrical contract is a legally binding agreement that establishes the terms and conditions for providing electrical services and serves as a legal document in case of problems or lawsuits that may occur during the project.
An electrical contract includes a description of the project for which the electrician has been hired, as well as a schedule and fee associated with the project. An electrical contract also provides an official confirmation stating that the electrician will fulfill their duties as stated within the contract.
Electrical contractors use electrical contracts to define the terms which will be agreed upon for a project. The contracts also include any fees, penalties, or down payments involved in the project. This way, when an electrician and homeowner or contractor are coming to an agreement about a project, there is a document that clearly states the agreement and ensures that both parties agree on the terms.
The document is a legal agreement because there is a section called “signatures.” Under this section, the homeowner or contractor has to sign saying they accepted the agreement terms with the electrician. Electrical contracts also include a section for signatures from the electric company that states they accept responsibility for servicing and repairing any electrical work that needs to be done by the electrician.
The best part of these contractual agreements is that once both parties sign it (usually between an electrician and a client, which can be the homeowner or a building contractor), there is no confusion at all throughout the whole process. These contracts approve and give consent to all strategies used by an electrician during a specific project.
A residential or commercial property owner may wish to employ an electrician to complete electrical work such as installing new light fixtures, rewiring a house, or installing an electrical system for a new home. The electrician will be required to list his or her electrical services in detail on the electrical contract, including the estimated time of completion, and the cost.
The contractor and the employer must enter into a written contract that includes the following:
- Terms and conditions of the work to be performed.
- The time and place for the inspection, which must be made after work is completed.
- The schedule for making final payments.
- A description of any appliances, fixtures, apparatus, equipment, or wiring that will remain in the dwelling and become the property of the homeowner.
Scope of the electrical project
Identify the extent of the electrical work to be performed. The scope of the electrical project is critical – it is an important part of any electrical contract. What exactly do you want done? State it clearly in words or as a bulleted list.
Here are some examples: repair all outlets in the house; finish off the basement for my home office; update all light fixtures; replace circuit breakers; fix all switches; install new light switches; remove and install a ceiling fan; and so on.
Scope and definitions are critical to avoid misunderstandings. So be clear, and make sure that your scope is one part of your entire job description.
This is probably the most important section of the proposal as it actually describes the specific project work to be performed. While you can include more detail about the project, it’s best to keep it short and to the point.
Plans, specifications and location
Explain where the electrical project will be carried out, describe the location of the work. Indicate whether it is to be installed in a basement, attic, bedroom, or other areas. Indicate the address, for example: “The electrical project will be carried out at the following address: 123 Main Street, Anywhere, AZ 84501.”
Also, the name of the contact person in charge of the property, for example: “The electrical project will be under the supervision of Richard Smith, who can be reached at (555) 555-5555.”
Plans are documents that outline your electrical design. These may include information like circuit breakers, panel wiring, light fixtures, and appliance circuits.
A specification is a document that lists the products and materials needed to complete the electrical work. It is usually prepared by a hardware or home supply store and includes information like electric wire gauge, light fixture brand names and models, and appliance connections.
Additionally, you may want to create a separate document outlining the specifications and containing them in a PDF file attached to your contract.
Index to the contract documents
The purpose of an index is to show all changes made to the agreement in order for a reader to find what has been changed without having to read the entire document.
It is common for a vendor to use the precise wording of an index in their proposal. Use this fact, along with any other evidence you can gather, in a claim for increased compensation if the project ends up taking longer than estimated.
It is common for the contractor to insert an index as part of its general response to a request for proposals.
Payment schedules are typically a section of an electrical contract. They provide the electrical contractor with some protection against cost overruns while allowing them to manage how they get paid.
Before starting work, the electrician and homeowner should agree on a payment schedule. An electrical contract payment schedule should contain all the details agreed upon by a homeowner and an electrical contractor for work performed on a project. This starts with the total cost of the project, which must be specified in the contract. The homeowner and electrician should also specify any taxes and fees, including permits that will be charged. The electrical contract should also detail any discounts.
Electrical work typically requires a deposit and monthly payments. If an electrical contractor is working on a project, it’s likely he’ll charge by the hour, and you’ll pay a portion of the cost at the end of each month. When an electrician charges by the hour, he might ask for a deposit equal to a quarter of his estimated hourly fee for an entire project. With this deposit, the contractor has capital upfront to purchase materials and begin work.
If the estimated cost is $600 and the hourly rate is $40 per hour, for example, then the deposit should be $150.
Depending on what’s agreed upon for payment, be sure to include an invoice with every job in order to refer back to the original agreement and ensure payments are made correctly on time. The invoice should also state what type of payment is due, whether check or cash.
Completion dates and schedules
In the contract, you must specify when the electrical work will begin and when it is due to be completed.
An example of this is as follows: It is agreed that electrical work shall commence on or before November 1, 2021. The work shall be completed within 14 days of the date that the funds are available.
If the completion date cannot be met, it is the electrician’s responsibility to let you know that in writing and to give you a revised completion date. Make certain that the completion date is acceptable to you before proceeding with the project.
Expect delays – Any project, no matter how small, is subject to a number of delays that are outside of the control of your contractor. These delays include items such as client negligence or general wear and tear; natural disasters; or delays that result from negligence to obtain appropriate documents or licenses to authorize the electrical work. Make sure you spell out what happens if the contractor runs into trouble meeting the completion date.
Payment for licenses and fees
Payment for licenses and fees in an electrical contract is a discussion that should happen early on. Based on the contract, either party may be responsible for paying for the license or fees.
License and permit fees can be applied to any electrical project that requires one. These fees can be confusing as they vary per state and sometimes just within a state.
The Electrical Contractor must understand what types of permits will be required for their project and how much time is needed to obtain any necessary permits prior to the start date set out in their contract. It is recommended to include a detailed description of any permits or licenses in the contract documents.
The Parties will want to review other parts of the contract, such as the payment schedule and conditions that would allow them to terminate or extend the duration of the contract if additional time is needed for obtaining permits; so they will need to include a provision to terminate or extend the contract if more time is needed for obtaining licenses and permits.
All electrical work should be installed with the highest standards of safety and quality in mind.
The electrical contractor must disclose the safety protocol and statement of intent before beginning work. The protocol should describe the steps the contractor will take to ensure the safety of the premises.
In this section, the contractor must describe how the work will be done, including the equipment and tools that will be used. This section of the contract should also disclose any safety measures put into place. It should also include a statement of intent, stating that the contractor will use reasonable skill, diligence, and care when carrying out the work.
The electrician may correct any issues with the installation at no cost to you. This statement of intent is in addition to the manufacturer’s warranty and is not a substitute for the same. Any work that has visible defects must be corrected by the contractor or his chosen subcontractor within a reasonable time frame or at no cost to you.
Responsibility for damage or losses
Explain who is responsible for any and all damages, personal injuries, or losses at the site, to the extent caused by the negligent act, error, or omission of any subcontractor, his employees or agents, except as otherwise provided in this contract. This section should also include insurance information for the electrical contractors.
When creating a contract, it’s important to have a signature section at the end of the contract. It adds an extra layer of protection. The signature section offers a place for parties involved, including the contractor and employer to sign the contract. So you have proof that they’ve agreed to all terms and conditions.
Start this section with the term “In Witness Whereof,” then draw a line and write the terms of the contract. Below this, list the names of the employer and contractor, leaving spaces for signatures, phone numbers, and addresses of each signatory. The employer and contractor should sign below these spaces. There should be a place for dates and witnesses to sign as well.
The signature section in any contract will help to authenticate a document. This is accomplished by the parties signing the document in the space provided on the contract.