How to Write an Electrical Contract

Contracts for electrical contractors are important documents that are used by electricians seeking to provide services for homeowners or building contractors.

The documents describe the agreement’s terms, project schedule, fees and costs, as well as an official declaration to perform all the work as discussed within the electrical contract.

A contract for electrical work can serve as a legal document in case of a lawsuit.

So, how do you write an electrical contract?

1. Identify Parties to the Contract

The first step is to state the name of the electrical contractor and that of the person or company that will be hiring the contractor as per the agreement.

The name of the contractor should be spelt out, followed by the term ‘Contractor’. At the same time, the hiring entity’s name should also be listed followed by the term ‘Employer’.

2. Define Scope of Work

Describe the scope of the electrical work. This section, usually identified as ‘Description of Services’, explains clearly the type of work to be performed by the contractor.

It may include details such as the rooms in need of wiring, or machines that require electrical repair such as fuse box modification, etc.

For clarity purposes, it is advisable to write this section as a bulleted list.

3. Specify the Location of Plans

For projects that require specifications that are not listed in the agreement, it is important to make a statement after the ‘Description of Services’ section about their location.

If possible, the plans and addenda should appear in a separate section at the end of contracts for electrical contractors in the form of Microsoft Word or PDF documents.

This section should explain where the electrical project will be undertaken.

It should also indicate the physical address of the property as well as the name of the person in charge of the property.

4. Specify the Payment Schedule

Lay down the payment schedule. Spell out the exact amount of money to be paid upon completion of the electrical work described earlier.

This section is usually titled ‘Payment’.

It should include due dates and terms of the invoice. Most electricians charge on an hourly basis, although sometimes electrical repair works are billed per project.

5. Specify Completion Dates and Schedules

This section, generally titled ‘Time of Completion’, outlines the exact date when the electrical work should be completed.

It may include a statement absolving the contractor from delays outside his control.

RELATED: How to Win Electrical Contracts

For example, a contractor should state that they are not liable for delays arising from the customer’s negligence, natural disasters, pandemic-instigated lockdowns, etc.

6. Explain Who Pays for Fees and Licenses

Parties to the contract must discuss and agree on who will be required to pay any fees, licenses and other expenses that may arise throughout the electrical work.

7. Describe the Safety Protocol

This section describes the contractor’s safety procedure and statement of intent. It should state that the contractor will be required to be diligent when undertaking the project.

The section should also include the contractor’s satisfaction guarantee statement and other information about the quality of the work to be accomplished.

8. Explain Liability Protection

This section indicates the party responsible for losses or damages that may occur at the site or any personal injuries that may happen throughout the electrical work.

It should include the contractor’s insurance information.

9. Create a Signature Section

At the end of the contract, some space should be provided to allow for the appending of signature and contact information. This section should begin as follows: –

“In Witness Whereof, the parties have signed this Agreement on this (day and year) as indicated in this contract and agreed to all terms.”

The full names of the contractor and employer should be listed here – leaving spaces for signatures, addresses and telephone numbers.

Editor’s Note: Electrical contracts are often just one to two pages. You may add a photocopy of the contractor’s insurance card as an addendum to the agreement.

It is always advisable to have the contract reviewed by an attorney before signing.

Join 15,000+ pros getting our weekly digest of news and insights.