A work order contract is a formal document that authorizes a specific job. It details the scope of the project, the projected timeline for completion, and the agreed-upon cost. Its main function is to ensure that both the service provider and the client have a clear, mutual understanding before any work begins. This alignment helps prevent miscommunication and potential disputes by setting expectations from the start.
Work Order vs. Other Business Documents
It is useful to distinguish a work order from other common business documents to understand its specific role. A work order authorizes work to be done, making it a “before” document used to initiate a service. In contrast, an invoice is an “after” document, which requests payment for services that have already been rendered and details the charges and payment terms.
Another document often confused with a work order is a purchase order (PO). A purchase order is an official document from a buyer to a seller, confirming a purchase of goods or services. While a work order might be issued in response to a PO, its focus is narrower and more detailed regarding the actual labor and tasks involved. The PO confirms the intent to buy, whereas the work order provides the specific instructions on how the service will be carried out.
Essential Information to Include
When creating a work order from scratch, including several pieces of information is necessary for it to function effectively. These elements ensure clarity for everyone involved and form the backbone of the agreement. A comprehensive document leaves little room for ambiguity, which helps in the smooth execution of the job.
- Complete identifying information for both the service provider and the client. This includes full names, business addresses, phone numbers, and email contacts. It is also standard practice to assign a unique work order number for tracking and include key dates, such as the issue date, start date, and projected completion date.
- A detailed scope of work is an important part of the contract. This section should describe precisely what services will be performed, leaving no room for interpretation to avoid “scope creep.” For instance, instead of writing “repair the office lighting,” a more specific scope would be “replace ten fluorescent ballast units in the main office area and replace all 2×4 troffer lenses.”
- A clear breakdown of all associated costs, separating materials from labor. For labor, list the number of hours and the hourly rate. For materials, itemize each part, including the quantity and cost per unit. Following the itemized list, present a subtotal, any applicable taxes, and the final total amount due, along with payment terms.
- An authorization section for the client to provide their signature and the date. The client’s signature signifies their formal approval of the described scope of work, costs, and terms. This act of signing transforms the work order into a binding agreement, giving the provider the green light to commence the job.
Adding Protective Clauses and Conditions
A robust work order contract should include clauses that protect both the service provider and the client from potential “what if” scenarios. These conditions establish a legal framework for handling unforeseen circumstances.
- A change order clause specifies the protocol for making changes to the original scope. It should state that any modifications require a new written agreement, signed by both parties, before new work is undertaken to ensure formal approval and pricing.
- A warranty or guarantee clause provides assurance regarding the quality of the work. This section should state what is guaranteed and for what duration. For example, a plumbing company might guarantee its labor against defects for one year.
- A liability clause outlines the limits of responsibility for unforeseen damages. This might specify that the provider is not liable for pre-existing issues or for damages not a direct result of their workmanship.
- A cancellation policy details any fees or terms associated with the client canceling the job after the work order has been signed. This protects the provider from lost time and resources.
Executing the Work Order Contract
Once the work order has been drafted with all the necessary details and protective clauses, the final step is to execute it properly. This ensures the agreement is legally sound and that both parties are ready to proceed.
Before sending the document to the client, conduct a final review. Proofread the entire work order to check for any errors or omissions in the contact information, scope, or pricing. An accurate and professional-looking document builds trust. The work order can then be delivered to the client for signature, either in person or electronically.
Ensure that both the provider and the client have a signed copy of the contract before any work begins. This signed document serves as the official record of the agreement. Retaining this copy is important for reference throughout the project and for record-keeping after the job is complete.