Electrical Contract
This document is a template, not legal advice. A contract should be reviewed by an attorney licensed in the state where the work is performed before you use it on a real job. Which pricing basis is appropriate, what a not-to-exceed cap must say, which costs are reimbursable, what notice termination requires and what interest is recoverable on a late payment are all matters of state law and negotiation, and they differ materially between states. Only two states’ prompt-payment statutes have been verified for this template (California and New York); every other state is printed as not evaluated rather than guessed at. The federal FTC Cooling-Off Rule (16 CFR Part 429) applies only where the buyer’s agreement was made at a place other than the contractor’s own place of business, and it does not replace any state right to cancel.Electrical · Time-and-materials work agreement — NOT a fixed price
Est. labor
$0.00
Materials + markup
$0.00
Projected total
$0.00
No cap agreed
Set one
1Parties, work & governing stateWho is contracting, what the work is, and whose law governs it.
Contractor
Client
2Pricing basisThe pivotThis is the choice the rest of the contract hangs on. A fixed price is one lump sum for the whole job. Time and materials bills hourly rates for time actually worked plus materials at cost and markup, and guarantees no total at all — which is why the not-to-exceed cap matters so much. Cost-plus reimburses documented costs and adds a fee, and turns entirely on which costs are reimbursable. Switching the basis here rewrites the pricing, payment and termination clauses so the document cannot describe one basis and bill on another.Pick this first — every step after it changes with the answer.Time and materials
Hourly rates by classification
3Scope & exclusionsDisputes rarely start over what the scope said; they start over what the client assumed was in it. On a time-and-materials or cost-plus job an unwritten exclusion is worse than on a fixed price: it does not just cost you the work, it turns into billed hours the client did not expect and will contest.What the work covers — and, in writing, what it does not.5 included · 5 excluded
Covered by this contract
NOT covered
4Payment terms & change ordersWhen money is due, and how a change becomes chargeable.No payment period set
Prompt payment
Prompt-payment rights on private work are state law: enter the governing state to see what has been verified. Only California and New York have been verified for this template; there is no national statutory late-payment rate.
5Termination & riskConvenience versus cause — and the insurance the indemnity relies on.Termination incomplete
6Governing law & the right to cancelWhere the client signed is what the federal rule turns on.Federal rule does not apply
Federal 3-day right to cancel does not apply
Below the $25 threshold that 16 CFR 429.0(a) sets for this signing location, so the federal rule does not apply. Enter the contract price to re-check.
7ReviewLiveEach finding is graded on what it actually costs you if it goes wrong, not on how hard it is to fix. A missing not-to-exceed cap on a time-and-materials job and an undefined reimbursable-cost base on a cost-plus job are graded critical because those two are what turn a job into a claim. Where a statute exists it is cited; where none does — the cap, the markup, the fee — the finding says so rather than inventing a figure.Every gap graded, worst first. Dismissed items leave the exports too.1 critical · 6 to fix
Not-to-exceed cap · No not-to-exceed cap — both parties are exposed
CriticalThis is the clause that decides whether a time-and-materials contract blows up, and it is missing. The risk runs in BOTH directions. The client has no ceiling at all: nothing in this document limits what the job can bill to. And the contractor has no defense either — with no written cap, a client who later says "you told me it would be about..." is arguing against nothing, and a verbal ballpark is what a court or a licensing board will be asked to reconstruct. No statute sets a cap in any state; it is purely contractual, which is exactly why the contract has to state one. Agree a not-to-exceed amount and the obligation to stop and notify on reaching it.
Labor rates · No hourly rate stated for any classification
High riskA time-and-materials contract with no stated rate has no agreed price for its main cost. Bill it and the client can dispute every hour. State a rate for each classification that will actually appear on the invoice — the classification, not the individual — and state whether overtime, travel and diagnostic time bill at that rate.
Payment terms · No payment period stated — nothing is ever late
High riskWith no number of days on the invoice there is no date from which payment is late, and nothing to attach a remedy to. Prompt-payment rights on private work are state law: enter the governing state to see what has been verified. Only California and New York have been verified for this template; there is no national statutory late-payment rate.
Termination · Termination incomplete — missing the notice period for termination for convenience and the cure period for termination for cause
High riskTermination for convenience and termination for cause are different rights and different money, and a contract that runs them together settles neither. On this basis the difference is sharper than on a fixed price: everything worked to the termination date is owed regardless, so what actually turns on the distinction is demobilization, restocking and cancellation charges — payable on convenience, not on your own uncured breach. Set both periods.
Material markup · No material markup stated — materials bill at cost
Worth fixingWith no markup stated, this contract has you supplying, handling, warranting and financing materials for nothing. No authority publishes a standard markup, so this builder will not fill one in — but state the number you actually use, and state that it applies to documented invoice cost.
Dispute resolution · No venue named
Worth fixingA dispute-resolution clause that names no forum leaves the parties arguing where before they argue about what. Name the county and state court, or the arbitration forum and its seat.
Written contract · Signed in writing before work begins
Not evaluatedStates set their own trigger for when a residential contract must be written and signed before work starts, and their own list of what it must contain. California sets the trigger above $500 and then dictates the contents. Confirm your state’s threshold and its required contents.
Cal. Bus. & Prof. Code § 7159
Change orders · Written change orders required, with the consequence stated
Looks fineThe clause requires a signed change order before the work begins and states what follows: no obligation to pay for un-ordered extra work, no obligation to perform un-priced extras. California requires the same for home improvement contracts under Bus. & Prof. Code § 7159 — confirm your state’s version.
Cal. Bus. & Prof. Code § 7159
Right to cancel · FTC 3-business-day cancellation does not apply
Looks fineBelow the $25 threshold that 16 CFR 429.0(a) sets for this signing location, so the federal rule does not apply. Enter the contract price to re-check.
16 CFR §§ 429.0, 429.1
8Clauses & signaturesThe clause spine for this basis, then both parties sign.11 clauses
1. Scope of Work
2. Pricing Basis — Time and materials
3. Change Orders in Writing
4. Payment Terms
5. Schedule
6. Termination for Convenience
7. Termination for Cause
8. Insurance & Indemnity
9. Dispute Resolution & Venue
10. Governing Law & Right to Cancel
11. Entire Agreement
Contractor
Client