Electrical Service Agreement

What a good one includes

• A precise description of the electrical tasks to be performed, including specific fixtures, materials, and circuits involved, to prevent scope creep.
• Clear payment terms detailing the deposit required, milestone-based progress payments, and the final balance due upon successful inspection or completion.
• A formal process requiring written, signed authorization for any additions or modifications to the original scope of work before extra labor or materials are supplied.
• Liability protections that explicitly state you are not responsible for fixing or bringing up to code any undiscovered, pre-existing electrical hazards unless paid to do so.
• Responsibilities for the property owner to provide clear, safe access to work areas, electrical panels, and utility shut-offs during scheduled working hours.
• An explicit declaration of who is responsible for pulling, paying for, and closing out the necessary local electrical permits.

Common mistakes to avoid

• Beginning physical labor or ordering expensive specialty fixtures based on a verbal agreement or handshake opens you up to unpaid invoices and liability disputes.
• Failing to define exactly what constitutes a completed job—such as a passed rough-in or a signed-off municipal inspection—leaves room for clients to withhold final payment indefinitely.
• Accepting verbal requests for extra outlets or upgraded panels mid-project without documented, signed change orders usually leads to unpaid extra work.
• Forgetting to limit your liability for accidental damage to hidden pipes, structural elements, or wires that were not clearly marked or documented by the property owner.

Frequently asked questions