Electrical Service Agreements: How Do They Work?

If you’re providing electrical goods and services, you need what we call an Electrical Service Agreement.

This is a contract that sets out the relationship between your business and your client. It answers important questions like:

• What goods and services are you providing? 
• Does your client need to pay a deposit? 
• What happens if the client is unhappy with the job?

Having a contract in place is always good practice with any business. It helps manage risk from the very beginning by ensuring you and your customers are on the same page.

In the electrical services industry, where you could be providing the supplies and installing them yourself, it’s particularly important to make sure you’re protected.

So, how can an Electrical Service Agreement help your business? Read on to find out. 

How Do I Use An Electrical Service Agreement?

To answer this question, it would really depend on how you engage with your clients (for example, online or in-person).

Often, we’ve found that either way works. As your project for each client will differ, you can attach your terms and conditions to the back of a proposal or statement of work. This will form your Electrical Service Agreement.

This way, whenever you provide a proposal or a quote to a client, it’s much easier for them to sign on board if your terms and conditions are attached to the back.

What’s Included In An Electrical Service Agreement?

Generally, an Electrical Service Agreement will make sure you’re protected as much as possible. Depending on your requirements, a good lawyer can work with you to draft the contract you need to protect your interests. 

Generally, an Electrical Service Agreement will address the following matters:

• How payments work: You might want to request an upfront deposit for projects to avoid cancellations after you’ve already arranged supplies, equipment or labour.

• Access to premises: In some cases, you may be performing electrical services in construction sites or buildings where they may be other work or projects going on. You’ll want to make sure that you have the right to access those premises for the purpose of your services.

• Goods, Services and Installation: You should make it clear what you’re responsible for, whether that be the supplies you provide or the quality of your installation services.

• Cancellation: Depending on the nature of your project, you might want to impose cancellation fees if a client cancels on a project too late (where you might have already sourced supplies and labour for that project).

And, with complex contracts, you might need a more bespoke contract to reflect the specific arrangement with your client.

Need Help?

If you need a lawyer to help you get an Electrical Services Agreement together, we’re here to assist!You can reach out to us for a free, no-obligations consultation on 1800 730 617 or at team@sprintlaw.com.au.

Regie Anne Gardoce

Regie is the Legal Transformation Lead at Sprintlaw, with a law degree from UNSW. Regie has previous experience working across law firms and tech startups, and has brought these passions together in her work at Sprintlaw.