Flooring Contractor Partnership Agreement

What a good one includes

• A clear breakdown of profit-sharing percentages and how overhead costs, like material deposits and marketing, are funded.
• An itemized inventory of who owns which specialty tools, wet saws, and vehicles, detailing how maintenance and replacement costs are split.
• A defined division of daily labor, specifying who handles bidding, on-site installation, client management, and administrative tasks.
• A policy for handling warranty claims and callback repairs, outlining who covers the cost of fixing a compromised installation.
• A practical mediation clause to resolve disagreements over project estimates or quality standards without freezing the business.
• A buyout and dissolution strategy that defines how assets, ongoing contracts, and client lists are divided if one partner decides to leave.

Common mistakes to avoid

• Neglecting to define who is responsible for fixing installation errors or paying for wasted materials on a botched job.
• Failing to list and value the personal tools and heavy machinery each partner brings to the business before starting work.
• Assuming profit splits must always be fifty-fifty even when one partner handles all the bidding and administrative overhead.
• Omitting a clear protocol for how to handle client payments that are late or end up in collections.

Frequently asked questions