1. Basic Information in Contractor Agreement Form
2. Info to Include on Installation Quotes
3. Tips for Preparing Flooring Contracts
4. Advantages of Running a Flooring Business 
5. Potential Disadvantages of a Flooring Business 

Researching flooring contracts samples will provide you with several options on how best to prepare your own contract for your flooring business. Even if you utilize a template, you want to verify that all the necessary information is in your business contract. 

Basic Information in Contractor Agreement Form

When writing a contractor agreement, be sure to include the following:

  • Contact info for all parties
  • A complete description of work to be completed
  • Quality and type of materials being utilized
  • Allowance amounts, so you have enough overage to provide the best quality product
  • List of all equipment that will be used for the project
  • Any architectural plans you've had drawn up
  • The process for changing the scope of the project if necessary
  • Start date and estimated duration of project
  • Workers' hours and days they will be working
  • Proof of required insurances from contractors, including liability coverage and workers' compensation
  • A written guarantee on materials and labor
  • A punch list, which details outstanding items to be addressed

Contracts should also specify whether a mechanic's lien will be held against the homeowner's property. Subcontractors can also include liens, so be sure you have waivers signed by all sub-constructors as well. Before handing over final payment to the contractor, ensure they present a release and waiver of any mechanic's liens.

Get the contractor to put in writing that he or she will take care of building plans the city needs, obtain all required permits, and schedule any inspections (if required). A failure to pass inspection means the contractor is responsible for the cost of corrections.

Discuss how payments are to be made. Four payments are common: the first payment when materials are received, the second when the project is 50 percent done, and another 20 percent upon completion. The remaining 10 percent is held until after inspection and completion of paperwork. 

With large jobs, there are two ways clients typically pay:

  • Costs plus a flat fee This option provides more freedom to alter details as the project is in full swing.
  • The second method is through bidding. A contractor estimates the cost and his materials. Parties then agree on a payment schedule.

No matter which option you go with, the project has to be completed to an agreed-upon milestone before making a payment. 

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Info to Include on Installation Quotes

Important information regarding installation that should be included in every contract includes:

  • Removal of existing flooring
  • Preparation of subflooring
  • Matching up floors of adjoining rooms
  • Who is responsible for moving furniture and repositioning
  • What materials are supplied
  • Whether costs are based on square footage and overage is being taken into account
  • Whether moldings are extra
  • What finishes are included 
  • Explanation of guarantees

Not all contracts require this level of detail, but this will give you an idea of what most installation contracts include. 

Tips for Preparing Flooring Contracts

  • Read the contract carefully, no matter whether it's from a template or one you drafted personally. 
  • Double check that the information is correct and it's what you have agreed to.
  • Check for ambiguous language and that unfamiliar terms are adequately defined.
  • If there is an indemnity clause, make sure you understand how that affects you.
  • To be a valid contract, it must have an offer, acceptance, and consideration (exchange of something of value), and both parties need to have intent.
  • Check with an attorney to verify you're following all legal regulations for the state you're in as well as any union or industry-specific requirements that might apply.
  • Define all terms and explicitly explain all details, as things you find obvious may not be obvious to someone else. 
  • Remember, something as basic as payment due in 15 days can mean calendar days or business days, which makes a difference in calculating late fees. 
  • Keep a photocopy of the signed contract.

Advantages of Running a Flooring Business 

There are some advantages to having your own flooring business. These include the following:

  • Being an independent business owner
  • Interacting with people every day
  • Having a physical and challenging job
  • Not needing a lot of training or formal education
  • Having the opportunity to earn a lot of money

Potential Disadvantages of a Flooring Business 

There are some potential disadvantages to running a flooring business too:

  • Stress
  • Physical challenges
  • Longer hours
  • Greater risk of injury
  • Unstable salary, especially at first

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