Rates to charge and Contracts

[powerscol]

I just purchased a used Ansung YJR074 tiller Sweet unit) to go behind my Bobcat CT235. This is a good match for my tractor. I also have a Bobcat brush hog. What is the going rate to do work with our equipment and what kind of Contracts are you using. I have posted a local add for $75 and hour for me to till folks gardens, etc with 1 hour minimum. As this is just local there is no mobilization charge.

Thoughts on this rate for tilling and also mowing? Also what sort of contracts are you using, liability clauses, etc. I don what to loose my shirt for being helpful.

Thanks - Keith

 

[Ed of all trades]

Around here people till an average size garden for $35.00, larger gardens are of course more. Bush hogging is something most people won't do because of the risk involved, almost everyone who has tells horror stories. Mine is running over a horse drawn plow with my bush hog, in a field guaranteed to be free and clear of anything to hit. One blade bent and cut a three foot grove in the deck of my bush hog. If I had not set it up ahead of time it would have cost me a set of blades and hours welding and hammering to get the deck back together enough to weld. The first thing the field owner said was I should have seen it so it was my fault. There are hundreds of stories like that. Most tractor owners say "It is not worth it." but that is for you to decide.

 

[powerscol]

Thanks Much. What kind of contracts do you use if any. Thanks

 

[jenkinsph]

powerscol,
Are you planning on being a legitimate business or are you doing this freelance for beer money? If you plan on being legitimate then plan on a license, tax #, bookkeeper, insurance and a whole wad of crap I don't wan't to bother with listing. If you wan't to freelance for beer money then work on a handshake and take your chances. The minute you show up to work for hire you assume a lot of resonsibilities and are liable for everything under the sun.

 

[powerscol]

Not trying to start a company - just tool money - I'm on a beer diet:laughing:

I was looking at some of the very simple contracts. I.E. I will till your garden/lot for $75 Hr 1HR min and am not responsible for damage (tillers can throw rocks), also wheel tracks to the plot, etc. So if they dont pay I have an out collecting.

I also wanted just a general waver so if their poodle decides to run and hide under the tiller I am not responsible. I was also going to ad they need to keep kids and pets indoors while I work. My neighbors grandson just could not stay away when I did his for helping me by loaning his trailer.

 

[kiotiken]

My insurance is null and void the second I make any money with my tractor. Getting my insurance company to insure my tractor while off my property under my home owners plan was an ordeal to start with. I think you will be doing this with no insurance unless you go legit. Like others have said, it's you call. I don't think any contract you can write is going to help you collect $75, it's just not worth the hassle if somebody wants to pick a fight. Dump a bucket of cow manure on their car or in the bed of their truck at 2am and call it even. As far as the liability goes, if something unthinkable did happen, you're into a lot of pain, time and money. Costs may tap you out long before you win a case because of having a contract. In the end, its 6 of one, half dozen of the other. Insurance is your only way to guard against that, and they'll probably have a contract they insist on anyway, but again, now you're a real business.

 

[joe t]

You mention liablity and contracts. You should ask a lawyer what you need before doing anything. Then ask a CPA, really important if there is a chance to do any thing beyond a little beer money. Don't know your plans but the first into the second year we were in business we ended up doing a lot of business unexpectly. Didn't get to see any of the money because we hired people, bought business stuff, opened a couple offices without knowing where our next paycheck would come from but hoping they would continue to come in. You don't want the IRS on you though especially in this kinda situation where the money is spent but possibly isn't accounted for well because you've never owned a business and don't know what exactly to do.


Anyway, at minimal my suggestion, and I'm not a lawyer so you should confirm this through your lawyer, would be to form an LLC which gives you some corporate protection. Do your contracts and operate through the LLC. If you run over a home owners dog (or worse) the LLC is liable, not you. I know it sounds shady but if you are doing "Company Work" you need to do it through the right entity. If the customer doesn't require you to have insurance then they should reasonably know if there is a problem they might have a hard time collecting. If you do enough business to afford insurance get it and get it to cover your equipment as well.

Think of what could go wrong and have the Lawyer draft up a quick contract for you to give customers including this stuff but don't make it so harsh they think you are shady. Something like "not responsible for hidden utilities beyond those makred by professional utility locating services" "owner is repsonbile to remove all non vegitative debris from the work area" "contractor will not remove or haul off trash and debris unless otherwise stated in contract" "contractor will not haul off excess dirt unless otherwise stated in contract" "this contract does or does not include final grade consisting of XXXXX". This protects you and the customer since the customer knows what to expect there is no confusion. I've known a couple contractors have their name tarnished because of vague contracts even though they are decent guys.


Outside of that there is negligence which you could be personally responsible for such as not calling the Utility Locating Service before starting and causing an explosion. Or drinking on the job and causing an accident.


Sounds silly but this stuff is really pretty simple and can be done in one day. An LLC is taxed like a person so you have to basically do 2 tax returns or maybe a little more but a cpa or good book keeper can explain this to you.



Anyway to the original question. I'd do a 2 hour minimal and offer a daily rate at a discount to attract customers.

Working for other contractors as a sub contractor can be a bear, they are worse than home owners and you better hope they didn't underbid the job or not entail the work required to finish the job to satisfaction.

 

[powerscol]

Wow - Great information.

Maybe I should stick to doing favors for a while. From this I will definitely be talking with my insurance agent and an attorney.

Thanks