Tree Removal Contracts Explained
A tree removal contract is a written agreement between a client who has requested tree maintenance of some form (like trimming branches or invasive roots) or an entire removal of a tree with a tree service company detailing the terms and conditions of the service to be performed. Generally, these contracts are signed before the work is done to set parameters on the job and both parties understand their obligations.
Both parties need contracts for tree care. For the client , a contract provides the guarantees necessary to protect against not having the work done as contracted or not being charged the right amount for the service. If you have a contractual agreement that the work is guaranteed, you can count on having it be done appropriately. Similarly, tree service companies need contracts so they know how much the client is supposed to pay and that they will get paid upon completion of the job. If a contract is not in place, and if the client is unhappy, he or she may complain to the Better Business Bureau or the state attorney general’s office about the service, when, in fact, they didn’t pay what the company had agreed to.
Essential Components of a Tree Removal Contract
A thorough and well-defined contract safeguards both the homeowner and the tree care professional. A good contract clarifies expectations and covers all bases, reducing the potential for future disagreements. Here are some key elements to look for and/or include when writing or reviewing a contract:
Scope of Work – The scope of work calls for specific details about what services are to be performed and what the tree care service provider is charged with completing. Items like tree and brush removal, stump grinding, and firewood splitting should be included. If the homeowner is responsible for doing anything after the tree care company leaves the job site, these details should be spelled out in the scope of work as well.
Payment Terms – Payment terms cover everything from hourly wages to overtime. These terms should also state whether payment is due in full at completion, or if payment will be made in stages as the work progresses. This section should clarify how trees will be priced: whether by the foot, lot size, tree species, type of service performed, or other factor.
Schedule – Some items to consider include when the contract is signed to when the work will begin, when you can expect completion, and when the bill is due.
Permits and Regulations – It is the responsibility of the tree removal contractor to obtain any permits necessary to do the work in your area.
Liability – A liability clause protects both parties from becoming financially impacted by injuries or damages that result from an accident while work is being done on your property.
Warranties – A warranty helps protect you from poor workmanship or plant failure. If a warranty is provided and a plant failure or accident occurs, it specifies clearly who is held responsible.
Conflict Resolution – A conflict resolution clause designates how disputes will be settled, which usually involves some sort of mediation or arbitration with an outside party.
Legal Aspects of Tree Removal Contracts
A properly crafted tree removal contract should also consider any relevant legal requirements at the local, state, and federal level that may impact the services to be performed. From an insurance standpoint, tree trimmers and landscape companies must carry a variety of business insurance and bonding. Tree services should verify that contractors have the following types of coverage: Whether a licensed or bonded tree service is required is a matter of local or state ordinance. Massachusetts implemented a statewide licensing system that requires tree trimmers to take a written exam and pass a background check, in order to ensure that only qualified individuals can ply their trade. In New Hampshire, where no such licensure is required, many tree trimmers merely buy their licenses from licensed professionals or have them exempted through an employee affidavit. Any entity entrusted with the removal of trees should verify whether a license is required in the community in which the services are being performed. Some communities, particularly those enjoying limited home rule, may have ordinances that govern the height of trees and therefore may require a permit to remove a tree over a certain height. It should be noted, however, that many states, including Utah, South Dakota and Texas, have passed laws limiting the ability of towns and cities to enact laws concerning the removal of trees.
Bespoke Tree Removal Contract Template
Before you start work, you’ll want to make sure you have a contract that suits your specific needs. While you can’t find a contract template that will cover every possible tree care project, you can create a template that will cover most routine services and be easily modified to suit particular needs.
When customizing your contract template, there are several factors to consider. One of the biggest factors is the type and scope of each tree removal project. While most tree care projects require relatively minimal information about the scope of work involved, larger projects with several removals or additional service requirements should be clearly defined either in your contract or in an addendum. You should also provide for any special considerations on large projects. For example, if your project requires you to enter private or commercial property and requires coordination with other onsite workers, you should make provisions for these things in your contract.
Another factor to consider is the materials involved. Some companies like to itemize materials used for tree removal by listing them individually, while others set up their contracts to just provide estimates for cost of materials . If you’re not sure how your company should set up their contracts, ask yourself the following questions:
You should also consider the costs involved in your work. It’s important to remember that it may be difficult to estimate costs of some supplies and equipment repairs, so build in plenty of room to adjust your costs as needed. You can also state in your contract that additional costs may be charged to the customer should the amount you specify be exceeded.
There are also several contractual stipulations that you’ll want to ensure that are part of your contract template. These include things like confidentiality, insurance, independent contractor statements and liability waivers. You can modify these clauses to suit your own purposes and add any other clauses you may feel are necessary.
One of the most important stipulations to add to your contract template is an acknowledgement that the customer understands the risks involved with the work being performed. This clause should also state that you and your team will be operating under the highest safety protocols and standards and you will not be held liable for any damage that may occur as a result of the contract work. This will help to protect you and your business from costly lawsuits and to reduce your insurance premiums.
Pitfalls to Watch Out For
Failing to clearly describe the job
It is important to depict the work being done, down to what is and isn’t included in the scope of the work. Listing every detail of the work that will be completed. For example, include how the wood will be handled after the tree is removed.
For instance, if the trees are going to be cutting it up for firewood or left as firewood?
Also, if the homeowner has other trees or brush they want removed and these are not mentioned in the contract, it could be a dispute later.
Make sure to include exclusions for the "extras" that can be done either for a $ fee or on the condition of a signed change-order.
The actual size/amount of the trees being removed
If you believe the tree is lower than 50MBF fixed in the stock market, then it needs to be stated in the contract.
An example of this is the Massachusetts Red Pine forest. The Forest is a 6 – 8 year rotation. But does this forest have 4MBF per 1 acre? Some states list the top end of the market, and with time it increases from there.
Even a mile from the border of a state with a higher market price can raise prices by 100%.
Clarify the dimensions of the trees; clarify the market price of the trees in that area
Include a complete set of terms and conditions. Such as..
You will be responsible for clearing the debris and properly disposing of the trees or leaving as firewood, and no liability to you.
The bill is due to the owner upon completion. If the homeowner chooses to pay it out, they will have 30 days to pay the remainder of the bill. Must include a formal statement that a lien may be put on the property if not paid.
Include a statement that the owner and/or contractors may have in the future, limits that may stop work.
Include a statement that the owner or contractor is responsible for the cost if stump follows re-routes line hit. And is responsible for cost to repair the line if it is hit. They are responsible for any damage done to the company’s equipment if this happens.
Mention in the contract that the owner must have a paid bond before the work starts.
There are several more key terms and conditions that must be addressed in a contract that they can sometimes be forgotten in the rush of the finer details.
Regardless, make sure your contract includes those things they can forget in a hurry. Include written protection for yourself and completion of the job.
Sources for Effective Tree Removal Contract Templates
A good starting point for tree removal contracts is to look for those published and drafted by professional trade associations in your area. Furthermore, they often directly reference and cite local laws and ordinances, making sure that an employment or service contract will land you in compliance with stringent legal requirements any area may have.
Next up would be to check for those offered by websites that are known for providing professional, well-drafted, fully customizable and editable templates and documents. We advise that you avoid any software that produces boilerplate contracts due to the inherent risks of using a tree removal contract template that is not professionally drafted . As your legal obligations and liabilities can be very serious, cut rate contracts can lead to a false sense of security and end up costing you a lot more if they are poorly constructed, missing vital clauses or do not address all the requirements involved with hiring an employee or subcontractor to do tree removal work.
The next best option would be to use those available from online legal services of various types. We caution that the majority of online pre-recorded videos or webinars covering tree trimming and tree removal do not address the contract issues you are likely to face, so avoid those when searching for reliable contracts and templates.