What a general contractor service agreement is for
Commercial property owners and landlords with several buildings need a contractor on call for repairs and small projects. A service agreement with set rates, response times and a yearly walkthrough saves them hunting for help and gives you steady work between larger projects. Spell out what counts as a separate project.
What to put on a general contractor service agreement
- Buildings covered.
- On-call response times.
- Labor and markup rates.
- Yearly walkthrough and report.
- Approval limits for work.
- Billing and cancellation.
A worked example
A landlord with three small commercial buildings wants a contractor on call and a yearly walkthrough.
| Line | Qty | Unit | Price |
|---|---|---|---|
| Yearly building walkthrough and report | 3 | visit | Your price |
| On-call repair labor rate | 1 | hour | Your price |
| Material markup | 1 | each | Your price |
Set an approval limit: work above it needs the owner's written okay. This agreement is a template and not legal advice; check your state's rules and have it reviewed.
Line items general contractors use
| Line item | Unit | How to write it |
|---|---|---|
| General conditions | month | Supervision, temporary facilities, insurance and site costs for the job's duration. |
| Site work and excavation | each | Clearing, digging and grading. |
| Foundation | each | Footings, walls or slab per plan. |
| Framing | each | Walls, floors and roof structure. |
| Roofing | square | By subcontractor; material and warranty. |
| Windows and exterior doors | each | Allowance or specified models. |
| Plumbing, by licensed subcontractor | each | Rough and finish. |
| Electrical, by licensed subcontractor | each | Rough and finish. |
| HVAC, by licensed subcontractor | each | Equipment and ductwork. |
| Insulation and drywall | sq ft | R-values per code; finish level. |
| Interior finishes allowance | each | Flooring, trim, paint, fixtures. |
| Permits, plans and inspections | each | Building department fees and any engineering. |
| Dumpster and final cleaning | each | Debris removal and a clean handover. |
| Overhead and profit | each | Shown separately or built into the lines. |
Terms and deposit language for general contractor
- Deposit. A deposit at signing secures the schedule and covers early costs such as permits and engineering. Many states limit deposits and set contract requirements for home improvement work, so check yours.
- Payment. Progress payments tied to milestones or a schedule of values, with retainage if agreed, and final payment at substantial completion and punch list.
- Warranty. State your workmanship warranty period and how claims are made; subcontractor and product warranties pass through to the owner.
- Allowances: selections above the allowance are billed by change order.
- Hidden conditions and owner changes are priced by written change order before the work.
- Schedule depends on permits, inspections, weather and material lead times.
How to fill it in
- Fill in the customer and the start and end dates.
- List what each visit includes and how many visits a year.
- Add your price per line; the plan shows a yearly total, and a monthly figure if billed monthly.
- Fill in what is not covered and the renewal and cancellation terms.
- Check your state's rules, then print it for signatures.
Free tools for general contractor
- Markup calculator
- Profit margin calculator
- Demolition cost calculator
- Foundation repair cost calculator
- Deck cost calculator
The same service agreement for other trades: appliance repair, auto detailing, carpet cleaning, chimney, house cleaning, commercial cleaning, concrete, drywall, electrical, fence, flooring, garage door, gutter, handyman, hvac, irrigation, junk removal, landscaping, lawn care, locksmith, moving, painting, pest control, plumbing, pool service, pressure washing, remodeling, roofing, septic, snow removal, solar, tree service, waterproofing, window cleaning.