Supply And Install Agreement Checklist For Tradies

Supplying the product and doing the install can be a great model for your trade business. You control the materials, the workmanship and the customer experience.

But it also means you carry risks from both sides of the job. If the goods arrive late, the site isn't ready, the client changes their mind or a part turns out to be defective, your agreement needs to say what happens next.

A well-drafted supply and install agreement doesn't have to be complicated. It just needs to be clear about the job, the price, the timing and who is responsible when things don't go to plan.

What Is A Supply And Install Agreement?

A supply and install agreement is a contract that covers both the goods you're providing and the labour you're performing.

For example, you might be supplying and installing:

• air conditioning units
• commercial kitchen equipment
• custom cabinetry or joinery
• security cameras and access systems
• flooring, windows, doors or fit-outs
• solar equipment or electrical components

This is different from a simple sale of goods, where you only provide the product. It's also different from a pure services contract, where the customer buys the materials separately and you only provide labour.

A supply and installation contract in Australia usually needs to deal with both sets of issues:

• Goods issues, such as specifications, delivery, damage in transit, defective materials and manufacturer warranties.
• Services issues, such as site access, installation standards, safety, timing, variations and payment milestones.

If your agreement only deals with one side, you can be left with gaps. For instance, your quote might say what model of unit you're supplying, but not what happens if the customer delays site access for two weeks and your installer has to be rebooked.

The goal is to remove guesswork before money changes hands. When everyone knows what the job includes and what it doesn't include, you're much less likely to be caught in an argument at the end.

Do You Need A Written Supply And Install Contract?

Yes, you should have a written contract if your business supplies goods and installs them, even for repeat clients.

That doesn't mean every job needs a 30-page document. Smaller jobs might use clear supply and installation terms attached to your quote. Larger or higher-risk jobs may need a more detailed trade services contract signed by both parties.

Without a written agreement, you may struggle to recover unpaid invoices, charge for extra work or prove that delays were caused by the customer rather than your team.

A written agreement is especially useful where:

• you're ordering custom or non-refundable materials
• you need a deposit before ordering stock
• the job depends on other trades being finished first
• the customer can request changes during the job
• your installers need safe access to the site
• there are manufacturer warranties or third-party supplier terms involved

Say Mike runs an electrical business in Adelaide. He quotes $18,000 to supply and install lighting, cabling and control panels for a small warehouse. The client pays a 30% deposit of $5,400 so Mike can order materials.

One week before installation, the client asks to swap to a different control system and add extra sensor points. If Mike's contract says variations must be approved in writing and may change the price and completion date, he has a clear process. If it doesn't, he's left trying to negotiate after the work has already started.

What Should Your Supply And Install Agreement Include?

Your agreement should include the commercial details of the job, the legal protections your business needs and a practical process for handling changes.

A supply and install contract template can be a helpful starting point, but templates often miss the job-specific risks that matter for tradies, such as access, site readiness and defective third-party materials. Before you use one with customers, a lawyer should tailor it to your business, your trade and the types of sites you work on.

Supply And Install Agreement Outline

Here is a fill-in outline you can use to think through what your agreement needs to cover. This isn't a finished legal document, but it gives you a practical checklist.

1. Parties - name your business correctly, including your ABN or ACN if you trade through a company.
2. Job Description - describe the goods, installation work, location and scope in plain language.
3. Specifications - attach product models, plans, drawings, measurements, finishes and any exclusions.
4. Price - state whether the price is fixed, estimated or subject to adjustment for variations.
5. Deposit And Payment Milestones - set out when payments are due and what happens if payment is late.
6. Delivery And Installation Timing - include expected dates, lead times and dependencies.
7. Site Access And Readiness - explain what the customer must do before your team arrives.
8. Variations - require written approval for changes to scope, price or timing.
9. Defective Materials - explain how supplier or manufacturer defects will be handled.
10. Workmanship Warranty - state what you warrant, for how long and what is excluded.
11. Customer Obligations - cover approvals, permissions, safe access and information they must provide.
12. Risk And Title - say when risk in goods passes and when ownership transfers.
13. Cancellation - deal with custom orders, restocking costs and cancelled installation dates.
14. Dispute Process - set out a practical escalation process if the customer isn't happy.

You should also check whether your trade is subject to licensing or state-based building rules. For example, building, electrical, plumbing, security and air conditioning work can have licensing requirements that vary across states and territories.

How Should You Deal With Site Access, Delays And Variations?

You should deal with access, delays and variations by spelling out the customer's responsibilities and giving yourself a clear right to adjust the price or timeline when those responsibilities aren't met.

This is one of the biggest practical risk areas for installation businesses. Your team might be ready to install, but the site isn't.

Common examples include:

• another trade hasn't finished their work
• the customer hasn't cleared the area
• power, water or internet isn't available
• the customer hasn't obtained a building or strata approval
• measurements supplied by the customer are wrong
• the site is unsafe or your team can't park, unload or access the area

Your agreement should say that installation dates depend on the customer making the site ready. If the site isn't ready, you should be able to charge reasonable additional costs, reschedule the work and extend the completion date.

Example: When A Site Isn't Ready

Let's say Jess runs a flooring business in Newcastle. She agrees to supply and install commercial vinyl flooring for $12,000, with installation booked for Monday and Tuesday.

When her team arrives, the old flooring hasn't been removed and another contractor is still painting. Jess loses a day, has to rebook her installers and stores the flooring for another week.

If her agreement allows a rescheduling fee and extension of time where the site isn't ready, she can point to the contract and invoice the extra cost. If her agreement is silent, the customer may argue the delay is part of Jess's problem, even though she didn't cause it.

Variations should also be controlled. Your contract can say that any change to products, quantities, measurements, finishes, access requirements or installation work must be approved in writing before you proceed. Email approval can be enough if your contract says so.

Who Is Responsible For Defective Materials And Workmanship?

Responsibility depends on what went wrong, who supplied the materials and what warranties apply.

If you supply the materials, your customer will usually look to you first if there's a problem. Even if the defect came from your supplier or manufacturer, your customer bought the goods from your business as part of the overall job.

Your agreement should separate:

• Manufacturer defects - for example, a faulty appliance, unit or component supplied by a third-party manufacturer.
• Supplier issues - for example, goods arriving late, damaged or not matching the order.
• Installation defects - for example, damage caused by incorrect installation or poor workmanship.
• Customer-caused issues - for example, the customer misuses the product, changes the site or fails to follow maintenance instructions.

Under the Australian Consumer Law, customers may have consumer guarantees for goods and services. These can apply to some business purchases too, including goods or services costing $100,000 or less, including GST, or goods or services ordinarily acquired for personal, domestic or household use. Exceptions can apply, such as goods bought for resupply or to be used up or transformed in production or manufacturing, or in the repair or treatment of other goods. You generally can't contract out of these guarantees.

For your business, the practical move is to make your process clear. Your agreement can say the customer must notify you of defects promptly, give you access to inspect the issue and not arrange third-party repairs without giving you a reasonable chance to assess the problem first.

You should also keep records of product orders, batch numbers, installation photos, testing results, commissioning documents and handover notes. If a defect is caused by a manufacturer, those records can help you make a warranty claim up the supply chain.

How Should Deposits, Staged Payments And Warranties Work?

Your payment structure should match your cash flow risk, especially where you're ordering materials before installation starts.

Many supply and install businesses use a deposit to cover materials, followed by staged payments at key milestones. For larger jobs, this can be much safer than waiting until the end to invoice the full amount.

Your agreement should make clear:

• how much the deposit is
• whether the deposit is refundable, and in what circumstances
• when materials will be ordered
• what payment is due on delivery of goods
• what payment is due at practical completion or handover
• whether late payment pauses further work or any voluntary support you offer, while making clear that this doesn't limit any non-excludable rights the customer has under the Australian Consumer Law or applicable building laws

Be careful with deposits for consumer-facing work, especially domestic building or home improvement work. Some states and territories set rules around deposits, progress payments, cooling-off rights, warranties, licences and written contract requirements for certain types of building work. The rules can be different in New South Wales, Victoria, Queensland, Western Australia and other jurisdictions, so get the state-specific position checked before using the same terms everywhere.

For business-to-business jobs, payment terms are often more flexible, but they still need to be fair, clear and workable. If you're dealing with construction work, state and territory security of payment laws may also give you processes for payment claims and adjudication. The exact timing and process differ depending on where the work is carried out.

Your warranties should also be realistic. You might offer a workmanship warranty for installation defects, but exclude problems caused by misuse, lack of maintenance, customer changes, normal wear and tear, third-party interference or manufacturer defects outside your control.

If you provide a warranty against defects to consumers, the Australian Consumer Law has specific wording and disclosure requirements. This is an area worth getting right, because warranty wording that sounds simple can create bigger obligations than you intended.

What Should You Do If Something Goes Wrong On A Job?

You should first pause, document the issue and check the contract before doing extra work or promising a fix.

When a supply and install job goes off track, a calm process can protect the relationship and your cash flow. Start with the facts, not blame.

Practical Steps To Follow

1. Record What Happened - take photos, save messages, keep delivery records and write down dates and times.
2. Check The Agreement - look at the clauses on access, delays, variations, defects, warranties and payment.
3. Notify The Customer In Writing - explain the issue, the likely impact and what you need from them.
4. Separate Fault From Fixes - work out whether the issue was caused by your team, the customer, another trade or a supplier.
5. Price Any Extra Work - don't absorb a variation unless you've decided commercially that it's worth doing.
6. Confirm The Next Step - put the new date, scope or cost in writing before work continues.

For example, if a customer asks you to install extra items while your team is already on site, don't rely on a verbal conversation. A short email saying what has changed, what it will cost and whether the completion date will move can save you a much bigger dispute later.

The same goes for delays, access problems and defects. If you agree on a practical solution by phone, follow it up in writing so both sides have the same record. Good communication doesn't replace a strong contract, but it makes your contract much easier to use when a job becomes stressful.

Key Takeaways

• A supply and install agreement should cover both the goods you're providing and the installation services you're performing.
• Your contract should clearly explain scope, specifications, price, payment milestones, site access, timing, variations and defects.
• Customer delays and site readiness issues should be dealt with upfront, including how extra costs and extensions of time will work.
• Consumer guarantees, building laws and state-based trade rules can affect what your terms can and can't say.
• Put variations, delays and agreed fixes in writing before you keep working, even if the customer seems happy on the day.

If you'd like help with preparing supply and install terms, reviewing your trade services contract or managing payment and warranty clauses, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.