Beware of the Suit – The Importance of Contracts Prior to Starting Work

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In today’s litigious environment, starting any service, repair, or construction job without a written contract is a major risk.
Clear agreements set expectations, reduce disputes, and help your insurer defend you if a claim arises. A signed contract protects your business,
your client, and your reputation.

Why Written Contracts Are Non-Negotiable

A contract turns expectations into facts. It documents scope, price, and timelines, and it creates a record that limits
misunderstandings. If a disagreement arises, a signed agreement gives you evidence your insurer and, if needed, a court can rely on.

  • Defines scope, pricing, timelines, and exclusions.
  • Prevents “handshake” ambiguity and scope creep.
  • Supports your insurer’s defense and claim handling.
  • Reduces out-of-pocket costs, deductibles, and premium shock from avoidable claims.

Regular Service Agreements: Core Clauses

Recurring services (e.g., pool care, landscaping, HVAC maintenance) can feel “intangible,” which makes expectations subjective.
Put clear terms in writing so both sides know what’s included and what’s not.

  • Scope of services: What’s included (and excluded).
  • Schedule: Service days and any blackout periods or holidays.
  • Pricing & billing: Monthly fee, billing date, due date, and late fee policy.
  • Site access & client duties: Gate/animal access, water/electric availability.
  • Liability & indemnity: Protects your business from damages beyond your control.
  • Cancellation & renewal: How either party ends or renews the agreement.
  • Signatures: Both parties sign before work begins.

Example Service Contract Table (Inline Styles)

Clause Purpose Example
Scope of Services Sets expectations and limits Weekly clean, brush, chemistry balance; filter replacement excluded
Schedule Avoids missed service disputes Every Wednesday, no service Thanksgiving week
Billing & Payments Creates billing transparency Invoice on the 20th; due on the 1st; $15 late fee after the 10th
Liability & Indemnity Protects against uncontrollable loss Client holds company harmless for pre-existing issues
Signatures Makes agreement enforceable Client and contractor sign and date before service

When Extra Work Appears: Use a Separate Agreement

If a client asks for additional services (e.g., pool drain, acid wash, tile cleaning), write a separate, signed agreement.
These tasks often add risk. Include indemnity and hold-harmless language, the price, the schedule, and any specific site prep
the client must handle (e.g., water level, access).

Pre-Service Inspection: Your Best Defense

Do a walk-through and document conditions before you start. Take photos of pre-existing cracks, stains, leaks, faulty
GFI protection, and any hazards. Send written recommendations and keep the email trail. This record can prevent blame for
conditions you did not cause and helps your insurer validate your position if a claim is filed.

One-Time Projects: Bids, Specs & Change Orders

For installations, remodels, or construction, put every detail in the contract: materials, brands, colors, labor,
milestones, and final inspection criteria. If the client requests a change mid-project, issue a written change order and get it
signed before proceeding. This is the simplest way to prevent “wrong tile,” “wrong pump,” and “missed deadline” disputes.

  • Scope & Specs: Models, colors, brand standards, and performance criteria.
  • Timeline: Start date, milestones, completion target, weather/permit allowances.
  • Payment Schedule: Deposits, progress draws, final payment on completion/inspection.
  • Warranties: What’s covered, what’s excluded, and for how long.
  • Change Orders: Mandatory for any scope, price, or schedule change.

Real-World Impact on Owners, Contractors & Insureds

Clear paperwork lowers the chance of disputes and improves claim outcomes. Without documentation, you may face deductibles,
denied coverage, premium increases, or out-of-pocket remediation. Homeowners get clarity on what they’re buying; contractors
get predictable workflows, better cash flow, and stronger defenses if something goes wrong.

  • Fewer chargebacks and “redo” demands.
  • Better insurer support and potentially more stable premiums over time.
  • Reputation protection through fewer public disputes and negative reviews.
  • Safer job sites when hazards are documented and addressed early.

Get Practical Templates & Help

Looking for industry-specific guidance and practical resources?
Visit California Pool Association Resources section for best practices, contract tips, and professional support designed to keep your operation protected and compliant.

Sources and Further Reading

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