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Thursday, January 8, 2009 

Contracts are good, no matter how small

shoveling snowI had a note from a friend of mine that reminded me how important paperwork can be, even for the  smaller home maintenance projects.

Long story short, Susan hired the same snow removal service as her neighbours in mid December. Susan explicitly asked them to put a contract in the mailbox, which they never did. It snowed the next day and they didn’t come…. she cleared it herself, hired someone else, and the second firm beat them there the next time. Susan called the owner to cancel him and offer to pay for the two times that they came out. The company never actually cleared her driveway.  The first snow fall she did it herself, and the second time the new company got their first.

The owner said to her offer “no, you owe us for a full month contract if you are canceling.” 

Susan was mad and replied “that is ridiculous. I am being friendly here. Offering to pay for two clearings you never did.” He said “You will hear from a collection agency!”

I’m wondering how is the owner going to collect on this when he never gave her a written contract to begin with. The funny addition to this, is that he’ actually got a collection agency calling Susan for the money he thinks he’s owed, and he hasn’t even sent her an invoice let alone a contract! We are not talking about a lot of money so this is a strange tactic.

It’s also small reminder how important it is to have a written contract that clearly states the agreement and deliverables.

Yesterday Susan said her snow service beat him to her house again (he still does her neighbors). Another tip: make sure your snow removal service gives you a time guarantee!  

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Posted by NancyP

  • Fair Lady

    It seems so sad that a contract should be necessary, doesnt it? I have never had one with my handyman or cleaning people. Even my landscaper! And have never had problems. Sounds like the snow removal service guy was having a VERY bad day. Obviously he is not hungry for business, which seems strange in today’s economy. I hope the homeowner tells LOTS of people what he did! Maybe her neighbors who use him would like to know what he did…?

  • http://www.the-reno-coach.com Reiner H

    Why should we have a contract for work on our home?
    1, Just to be clear on what service is provided and how much we required to pay.
    2, More important we want to make sure the contractor has coverage under WSIB and a valid Liability Insurance Policy.Very few people are checking on ether one.

  • http://ljpconst.com Leo Post/L.J. Post Const

    Please be aware; a contract written even on a pice of toilet paper will stand up in court. Second in this case of snow plouwing. Contractors, door sales vendors or eny thing that is agreed up on or contracted from the home owners premices is subject to a ten day cooling-off period. This is the consumers protection act.
    The home owner has the right to cancel the signed contract with-in 10 days of the signed date. The home owner is not obligated to state or give any reasons. All deposits if any must be refunded in full. The canselation notice must be given in writing. Second the cancilation clouse must be stated in the contract.
    Verbal contract have no value and quite often are not contested. If you do and luky quite often 50/50
    If money is exhanced on a verbal contract or on verbal promise please get a reciept.
    WSIB require all building/renovation contractors to be registered. There employees must be covered. (Otherwise in the end the home owner is responsible for any injuries incured on there property)In absent of a valid WSIB certificate the home owner must verify with the WSIB. In all cases please verify the liability certificate of the contractor. Also a contractor or an independend operator with a city licence is not a certificate of qualifications. The purpose of the licence is only to operate the business with-in the city of Toronto. On the other hand plumbers, electriciens, pipe and gas fitters and some others must be in the posession of a certificate of qualifications before they can get a city licence.

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