The Importance of Terms of Business for Tradespeople
HomeForce provides Scottish based tradespeople with Terms of Business that form a robust, fair contract between them and their customers.
The Terms of Business are:
- Specific to the tradesperson’s business
- Professionally drafted by a Scottish Corporate Lawyer
- Informed by 20+ years of working with, for and as tradespeople
HomeForce’s Tradesperson Terms of Business are provided free of charge to (and hosted online for) accredited tradespeople. A template is also available for non accredited tradespeople to buy.
Most tradespeople know they should have Terms of Business. Many just never get around to having them professionally drafted or even cobbling something together themselves. HomeForce does this quickly and easily for trades-businesses because we believe good Terms of Business are vital to help them thrive; here are 6 reasons why:
- First and foremost, terms of business provide protection for both tradesperson and customer against malicious or accidental misconduct.
- With written rules both parties are aware of the consequences of breaking the agreement and know that the law can more easily be brought to bear for any redress.
- Moreover, they also limit liability for both parties if things do go wrong.
- Professionally drafted terms of business give a tradesperson credibility.
- Consequently, customers are more likely to engage them over a tradesperson with no terms.
- For a tradesperson this means they can get more jobs from fewer quotes…and perhaps even justify why their quote is a little higher than a competitor.
3. Time Saving
- Customers usually have questions for contractors when engaging their services; What are your payment terms? What do I need to provide? When do you need access? What happens if I’m not satisfied with the work?
- Setting out answers to these questions in Terms of Business saves time for both the customer asking the question and for the tradesperson answering them.
4. Prevent Misunderstandings
- This is another time saving reason but it deserves its own slot
- Why? Because most of the time disputes between tradespeople and customers are down to misunderstandings of responsibilities and obligations.
- Sorting out those misunderstandings takes up huge amounts of time and can be emotionally draining. So, if it can be prevented then why not do it?
5. Customer Obligations
- It’s a common misconception that engaging a tradesman means all the obligations are on their side. That’s not the case.
- As with any contract there are obligations on both sides. This might be to provide tea and bourbon biscuits at 10am (not usually enforceable!) or just pay on time, provide uninterrupted access to the site or clear a work space before work starts.
- It’s important that customer understand what their part in a contract is and what the consequences of them not sticking to it.
6. Customer Service
- Terms of business are usually just seen as something legal. However, providing them is also just plain old good customer service.
- When buying anything people want to know what they are getting for their money. And, along with a good quality quote, that’s what good terms of business do; clearly explain what a customer should expect for the money they will pay.