6 Contracts Every Tradesperson Needs Before the Next Job

Most payment fights in the trades start the same way. Nobody wrote down exactly what was included. Then the customer expects more, the price changes, and suddenly you're chasing your money.

Good contracts aren't about suing people. They're about making sure everyone agrees up front, so you get paid and move on to the next job.

Key takeaways

• Every job needs a written agreement covering scope, price, payment schedule, timeline, and what's not included.
• Extra work gets a signed change order before you do it. Every time.
• If you hire subs, use a subcontractor agreement and collect their certificates of insurance.
• Read every agreement a GC or dealer hands you. Watch for pay-when-paid, indemnity, and warranty clauses.
• Federal and Colorado rules can add required language, like cancellation notices and lien notices. Have an attorney review your templates once.

1. Customer service agreement (or estimate that becomes a contract)

This is the big one. Your estimate can become your contract once the customer signs it, as long as it includes the right terms.

What it should cover:

• Parties: your legal business name (your LLC), the customer, and the job address
• Scope of work: exactly what you'll do, with materials, brands, and quantities where it matters
• Exclusions: what's not included (drywall patching, painting, hauling, permits, hidden damage)
• Price and whether it's fixed or time-and-materials
• Payment schedule: deposit, progress payments, final payment, and accepted payment methods
• Late payment terms
• Timeline and what happens with weather, material delays, or access problems
• Permits and inspections: who pulls them and who pays
• Change order process (see #2)
• Warranty (see #6)
• Site conditions: what happens if you find rot, mold, or code problems behind the wall
• Dispute resolution: how disagreements get handled
• Signatures and dates from both sides

The 3-day cancellation rule

If you sell a job at the customer's home, the FTC's Cooling-Off Rule may apply. It generally gives buyers until midnight of the third business day to cancel certain sales of $25 or more made at their home, and you have to give them written notice of that right.

There are exceptions. The rule generally doesn't cover sales the buyer needs for an emergency, or repair and maintenance work the customer asked you to come out for. But extra goods or services you sell beyond what they asked for can still be covered. If you sell at the kitchen table, have an attorney check your paperwork.

2. Change order form

Scope creep kills profit. "While you're here, can you also…" is how you end up working for free.

A change order is a short form that describes the added or changed work, the price change, any schedule change, and gets signed by the customer before you start the extra work.

Keep it simple enough to fill out on a phone. Many field service apps can send change orders for e-signature.

3. Subcontractor agreement (when you hire help)

When you bring in another tradesperson, put it in writing. It should cover:

• Scope, price, and payment terms
• Schedule and site rules
• Insurance requirements: their general liability and workers' comp (or proof they're exempt), with you named as additional insured if appropriate
• Responsibility for their own tools, helpers, and taxes
• Warranty and callback responsibility
• Independent contractor status, written to fit how the work actually happens

Collect a W-9 and a certificate of insurance before they start. If an uninsured sub causes damage or gets hurt, it can land on you. For classification basics, see 1099 vs W-2.

4. Agreements you sign as the sub

Many independent installers work for dealers, retailers, or general contractors. They hand you their contract. Read it before you sign. Watch for:

• Pay-when-paid or pay-if-paid: you don't get paid until, or unless, they get paid.
• Indemnity: you agree to cover their losses. Some clauses go far beyond your own mistakes.
• Insurance requirements: specific coverage types, limits, and additional insured status. Check that your policy matches. See general liability vs E&O.
• Warranty and callbacks: how long, and whether callback trips are paid.
• Back-charges: what they can deduct from your pay, and how.
• Non-solicitation: limits on working directly for their customers.

If you don't understand a clause, ask before you sign. That's what a legal plan or attorney is for.

5. Operating agreement (if you have a partner)

If you own the business with someone else, your LLC operating agreement is the most important contract you'll sign. It should cover ownership, who decides what, how money comes out, what happens if someone wants out, becomes disabled, or dies, and how the business gets valued. A buy-sell agreement funded with life insurance often goes with it. See life insurance for trade business owners.

6. Written warranty terms

Spell out what you warranty, for how long, and what voids it (customer misuse, other contractors' work, manufacturer defects). Clear warranty terms stop "free fix forever" expectations and protect your reputation.

Colorado notes worth knowing

• Mechanic's liens. Colorado lets contractors and suppliers file liens for unpaid work on real property, but the process is strict. You generally must serve a notice of intent at least 10 days before filing, and filing deadlines are short (often measured in months from your last work). Talk to an attorney as soon as a payment is in serious doubt.
• Roofing work. Colorado has specific contract requirements for residential roofing work, including rules tied to insurance claims. If you do roofing, have your contract reviewed for compliance.
• Licensing on paperwork. If your trade requires a state or local license, keep your license information current and accurate on your contracts and estimates.

How to put this in place without a huge legal bill

1. Build templates once. Have an attorney review your customer agreement, change order, and sub agreement. Then reuse them.
2. Load them into your software. Most field service tools let you attach terms to every estimate and collect e-signatures.
3. Review once a year, or whenever laws or your services change.

Free templates online are a starting point, but they're often written for another state or another trade. A one-time review is cheap compared to one unpaid job.

FAQ

Is a text or email agreement a contract?
It can be, but it's hard to prove what was agreed. A signed document with clear terms is much stronger.

Do I need a lawyer to write my contracts?
Not for every job. But have a lawyer review your core templates once so they fit your trade and your state.

What deposit can I ask for?
It depends on the job, materials, and any rules that apply to your trade. Spell out the deposit and what it covers in your contract.

What if a customer refuses to sign?
That tells you something. Clear paperwork protects them too.

Get contracts written for the trades

Fresh Start Consulting connects tradespeople with trusted legal partners for contracts written for trade work and ongoing legal support. See our Legal Services or book a free 30-minute call.

This article is for educational purposes only and is not legal advice. Contract and lien rules vary by state, city, and trade, and they change. Talk to a licensed attorney before you rely on any contract or file any lien.

Evan Lightner is the founder of Fresh Start Consulting. He started as a 12-volt and telematics technician and built his first company from the ground up. More about Evan.