Contracts of sale/commissions/etc

[Ormsby Guitars]

Need to get some new sale contracts drawn up covering the commission of custom made instruments. Anyone got any recommendations, samples, or ideas?

Maybe some people in here would like to join in on a group effort? $360 per hour minimum for a contract attorny, is a bit pricey but it could be split over a bunch of us?

[Ormsby Guitars]

Obviously would need to cover warranty, build times, payment schedules, specifications, etc etc.

[Ormsby Guitars]

Really? no one has any comments regarding contracts, nor is interested in a 'group buy' style arrangement?

[kiwigeo]

No comments from me....the only contract I have is with my wife and its a simple one. It states that at tea time Im not to be in my workshop or its divorce time

[Phil Mailloux]

I wouldn't pay that for a sollicitor to do this but then again my output is only 8 per year, yours might be a lot more. I've essentially added a couple of paragraphs of legalese at the bottom of my spec sheets which doubles as a contract, i.e. the bass is built according to the specs on the sheet, customer must sign and send a copy back if spec sheet is 100% what he wants to have, build time starts when signed AND full deposit is in my hands.

My bit of legalese was created by taking bits and pieces of other builders' contracts and putting them together for what would suit me. I can probably paste it here tonight when I get home from work if you want to see it Perry

[Ormsby Guitars]

Would love to see if possible, Phil.

In the last 2 years, ive had:
One instrument paid in full. Can't get hold of the client. Instrument is done. (I have reason believe it was another guitar maker purchasing one of my instruments through this client)
Two orders cancelled, after considerable work was done, and progress payments haven't been made.
One instrument with numerous changes throughout the build (either my suggestions, or theirs), all with comments, discussion, agreement regarding each change, now being requested to change it all back to original specs (basically, a full new guitar).
4-5 clients put instruments on hold for lengthy periods of time, due to finances. What happens in the case of price rises?

Of course, I need to be protected in those cases, but I'd also like to include things about:
Tonality is subjective (eg: client wants a bright guitar, but requests changes which would go the opposite way)
Materials are natural products (wood) and may look/sound/weigh different
Warranty
Service agreements (I currently offer lifetime free servicing/setup... need conditions)
etc

[Phil Mailloux]

Yeah, my contracts aren’t that much in depth but I see totally where you’re going with this. I’ve had a few of those issues myself in the last couple of years and it’s a real bitch. I don’t do progress payments exactly for the reason you mentioned, I ask 50% upfront and rest on completion before shipping.

I’ve had a guy ask for all kinds of changes all the way throughout the build, I’m fairly easy going and will do what I can to make the guy happy but at some point you have to draw a line somewhere, if he’s asking for different specs after the wood has already been cut or after you’ve already bought the hardware then tough luck unless you know for sure you can re-use his part elsewhere soon enough. I essentially tell him its been done already according to the quote/spec sheet he signed. One guy asked me to “slap on black hardware” on a bass like a week before delivery when during the whole build (6 months) we had chrome hardware on, I told him I’d do so only if he paid the extra $150 for new hardware since I had already bought and had the chrome hardware in stock  Sometimes I fell like ripping my hair off (it would help if I had any) needless to say he took the chrome hardware.

Anyway, most of the stuff you mention that should be on the contract make total sense, I’d be happy to have that on mine too, I especially need to have some sort of mention about what happens if a customer pulls out of a build.

[Ormsby Guitars]

Well, if we can get a bunch of people together and build up a versatile contract for all of us, it would save a lot of $$$, and give us all a lot more security. I'm getting feedback it will be about $2000 to do this ~~properly~~. Split over 10 people is only a couple hundred bucks each. Insurance really...

[Nick]

Yeah, my contracts aren’t that much in depth but I see totally where you’re going with this. I’ve had a few of those issues myself in the last couple of years and it’s a real bitch. I don’t do progress payments exactly for the reason you mentioned, I ask 50% upfront and rest on completion before shipping.

That's pretty much how I work but then I am only building part time so I tend to have a little more relaxed contract, if like you Perry, it was my main source of income then I'd want a pretty water tight formal agreement. Maybe a 25% deposit that only gaurantees them a space on your build calender then 50% at time of build commencement & the final 25% on completion with any alterations requested by the customer before completion & costing more than the original quotation, to be met by the customer?

I try and discuss as much as possible with the customer before even accepting the deposit as to what his or her requirements are, what I can do (it's at this phase that we can nut out what sort of tone/sound they're after) so that by the time I shake his or her hand & they rattle off to the bank to withdraw the 50% deposit, we both know what they want. I started out using a list/tick box sort of agreement but I found it had to be fairly comprehensive in order to cover every possible build configuration & aspect of it & it became a really regimented process to me whereas I like to work a little bit more 'free form' so this idea was dropped after about two guitars I've been really lucky so far in that the customer trusts me enough to leave the finer points up to me.
If, when I've started they ring me up with a change I always state that any change from the already agreed plan will cost them x number of dollars more, including if they want to change something I've already done because it's my time they are taking up. Sometimes they cough & splutter & stick with the agreed plan or call in to line my palm with more cash. If it's something I decide to change I ring before going ahead with it & also carry the cost for my choices (might usually only be small aesthetic details). I've always tried to build up a good raport with the customer before hand so most of my builds are fairly friendly affairs but I realise it's your fulltime business & this is not always be possible as so many 'different' sorts walk through your door so as I say, a more formalised approach is warranted!
I do have a formal warranty which is a pretty standard affair covering against material & workmanship faults but alterations carried out by customer & mistreatment aren't covered. This comes in the form of a printed document with the serial number of the guitar listed and a signature.
I don't envy you though Perry, I know several people who have their own business & chasing people up for money is always their primary grizzle with staffing coming in a close second

[Phil Mailloux]

Here's my little blurb on the spec sheet/contract I provide, its not near enough to cover most of the issues you mentioned though so you may very well have to do it the hard way through a sollicitor. Like Nick, its only a hobby business for me so I don't see the need for the time being on getting something more complicated done but like he said, you're doing this as your main job so you might be stuck with no other choice but to get it done. I guess a lot of it has to do with the communication before the deposit is sent out, for me that's usually around 50 emails before I get a cent in return so there's plenty of talk about all the options and issues that might happen. In the end you can write all the legalese in the world, you can still be sure one customer at one point will find the right issu you forgot about to complain about


Shipping cost and insurance is payable by customer
Build time is 6 to 8 months from the date full deposit is received.

Payment Terms
Direct Depost, Paypal (incurs a 1.5% surcharge) or personal check is accepted for
payment. A 50% nonrefundable deposit due at the time of order.
In the event of payment default, builder retains ownership over the instrument.
Instrument is begun upon receipt of signed order and full deposit.
Final payment due within 30 days of completion of the instrument.

Build Changes
After work on the customer's instrument has begun, any customer-initiated
changes to the specifications will be accomodated whenever possible. If any
such changes result in additional material and/or labor costs, the customer is
responsible for immediate payment to cover the costs of the change at a price
agreed upon by the builder and customer.

Warranty
Instrument comes with a warranty against workmanship defects, which will be repaired
by the builder free of charge within 3 years of the date of delivery. Each custom
instrument is designed through extensive collaboration with the customer, and as such
is a one-of-a-kind item; for this reason, a money-back guarantee cannot be provided.
However, anything that is not specifically built as requested by the customer on the
order form will be fixed free of charge.