How a Tree Service Contract Works
A tree service contract is essentially an agreement between the service provider and the client that acts as a roadmap for the project, spelling out pertinent details such as payment, duration and scope of work. It may seem unnecessary to have a written agreement when you can verbally discuss the details , but it is important to have a contract to help manage your business and protect your clients and yourself should a dispute arise. The contract becomes essential when issues arise around the areas that the contract spells out and holds each party responsible for. For example, if there are damages to property from work performed, the contract can be reviewed to determine liability. Having the contact in writing also eliminates he said/he said disputes in the case that one party believes the other was negligent or did not fulfill their part of the contract.
Common Elements of a Tree Service Contract
A tree service contract sample is a useful basic document for any private property owner hiring tree service contractors. However, it is important that both the contractor and the property owner discuss all the key components, even if the final product has been customized to their needs.
Typical Tree Service Contract Elements:
Scope of Work – This is a fairly detailed and specific, but easy to read, description of what services will be provided. It addresses whether trees will be trimmed, topped, cut down to the stump, yard debris cleaned up after the work has been completed, etc. It can also address who owns the tree (if there are concerns about boundary lines) and whether special machinery or equipment is needed for any of the work.
Payment Terms – The exact dollar amounts involved should be spelled out (including any estimates of how long material will take and the likely effect on labor costs) as well as when the money for the services is due and in what form it will be made.
Timeline – Under normal circumstances, there should be a place where the estimated start and end dates of the project are recorded (actual times might change under adverse weather conditions or other problems). A final report and receipt may provide for a time period in which information can be exchanged with either party about the project (to understand if any disputes exist). Though extra clauses may be inserted, the timeline is an element that is also difficult to litigate because one or both parties may be well within their rights to change the end date to the project.
Liability and Insurance – In the event that injury or damage should occur to personal property, the contractor should specify exactly where his or her responsibility lies, including any injuries to the private property owner or passerby. If this is not the contractor’s responsibility, the private property owner may wish to consider buying a short-term commercial general liability policy to cover any work to be done.
Language and Clauses in a Tree Service Contract
To illustrate the type of language typically found in a tree service contract, here are some commonly used clauses, along with explanations of why they are central to these contracts.
Parties to the Agreement:
"This Agreement shall be between [name of owner], hereinafter referred to as "Owner" and [name of contractor]’, hereinafter referred to as "Contractor."
Another way to set out the parties, especially if the contractor is an alternative legal entity, such as a corporation or a limited liability company, is to write:
"This Agreement shall be between [company name], whose principal place of business is located at [address], hereinafter referred to as the "Contractor" and [owner name], located at [owner’s address], hereinafter referred to as the "Owner."
Scope of Work:
"The Contractor agrees to remove a [size] maple tree from [location] and grind the stumps to the ground level. The Contractor shall also haul and dispose of all cut and removed wood and debris. The Owner will pay the Contractor a fee of $[amount] for the services rendered by the Contractor under this Agreement"
Payment Terms:
"The Owner shall pay the Contractor a total fee of $[amount] for the services rendered under this Agreement. This fee shall be due and payable upon completion of the work. "
Equipment Use Warranty/Tree Removal Warranty:
"The Contractor warrants that all equipment used in performing this Agreement will be in good working condition and the tree removal services performed hereunder will be in a workmanlike manner. The Contractor agrees to promptly return and correct any work found not to be performed in a workmanlike manner or out of compliance with this Agreement at no extra cost to the Owner. "
Waiver of Subrogation:
"Owner and Contractor waive all rights of subrogation against each other and their respective officers, directors, agents, servants, employees, and other Contractors, of any and every tier, for all losses, damage, claims, suits, demands and expenses (including attorneys’ fees) which each party may sustain or incur arising out of the performance or furnishing of any work under this Agreement.
Indemnification:
"To the fullest extent permitted by law, the Contractor shall protect, indemnify and hold harmless the Owner, its agents, servants and employees from any and all injuries, claims, suits, liabilities, damages, losses and expenses arising out of the performance or furnishing of any work under this Agreement, the satisfaction of all judgment, cost and other expenses incurred in connection therewith."
Legal Issues and the Law
Legal Issues and Compliance: When drafting a tree service contract, it is important to address all the legal issues and considerations associated with performing the proposed work. A tree service contractor will want to ensure that it provides its employee a safe environment to work, as well as safety equipment and instructions. To do so, the tree service contract should include a provision addressing loss or damage caused by lack of supervision by the tree service contract or its employee. Further, the tree service contract should require the tree service contractor to follow the Occupational Safety and Health Administration’s ("OSHA") standards related to any work being performed. In addition , tree service contractors may be required to obtain bonding and insurance in accordance with applicable local law. For example, a tree service contractor could be required to obtain a municipal bonding license in accordance with the New York City Arborists Licensing Law, NYC Administrative Code ยง 20-387, which became effective on July 27, 2017. As a result of the licensing law, a New York City Tree Service must maintain $300,000 in single occurrence and $500,000 in total coverage for bodily injury and property damage, as well as $1 million in single occurrence and $3 million in total coverage for bodily injury to two or more persons. Thus, to protect its business and comply with applicable law, a tree service contractor should carefully review and incorporate compliance requirements into each tree service contract.
Parts of Your Tree Service Contract
While tree service contracts may have the same core elements, such as listing the services to be performed, the cost, and the timeframe for completion, there are a whole host of other clauses that can be tailored to the particular situation or project. Sometimes these elements may be more or less common depending upon your geographic location, which is why it is so important that you find legal counsel who is familiar with the local ordinances that govern tree care and maintenance.
For instance, most tree care or removal services in the United States require that an arborist, specifically, a certified arborist, perform certain inspections, such as when performing a health inspection on a tree to determine whether it has an infection, disease, or pest problem. Depending upon where you live, though, some arborist certifications may not be recognized by your state and therefore may omit this element. A local attorney will know your state ordinances and can help determine whether an arborist certificate is required in your area or if it should be included.
Conversely, you may need to add more requirements, such as for tree removal from a residential property line by or near a fence or a wall. In these cases, for your protection, in the event that a tree lifter or a crane is going to be used, that can be specified in the contract. You may also want to specify which direction a crane will move to more closely accommodate the space or assess the risk of dropping a tree on or near your property, or that of your neighbor, so that if a problem arises, the proper liability can be assessed.
Your written agreement may also need to contain what happens in the event that something outside of your or the tree contractor’s controls causes the job to be postponed or canceled, or if another circumstance arises. If the garden did not already have a border, you may want to specify that the boarder is to be built as part of the job. Likewise, if there is a shed that may be damaged in the process, you want to make sure that the contract clearly states what will happen in this situation.
How to Look Over and Sign a Tree Service Contract
Each side should read the contract carefully before signing. Make sure you understand what it says and how it pertains to you, your property, and the tree service you have chosen. If you have questions, obtain clarification in writing from the company and take your time signing. A reputable, responsible tree service will understand that you want to protect yourself and will not rush you through the process.
When it is finally time for your tree service to break out the chainsaws and take care of business , each party should have a copy of the contract so everyone knows what is expected of them and what they will receive when all is said and done. The contract should be clear enough that no one is unsure about what the tree service has agreed to do, and what the client is required to do in return.