Plumbing, Business Tips, Management, Operations

Plumbing Contracts: Components & Benefits

ServiceTitan
July 10th, 2023
5 Min Read

A good plumbing contract puts all details of the project into writing, saving everyone time and trouble in the future. 

In this article, we’re going to explore plumbing contracts and everything related to them.

We’ll talk about:

  • What plumbing contracts are 

  • Key elements of a plumbing contract

  • The benefits of using this type of contract 

Plus, we’ll also provide you with a plumbing contract template to save you time when you need one.

Without further ado, let’s get started!

Why Use a Plumbing Service Contract?

Every plumbing contract has the ultimate goal of legally enforcing an agreement between you and the customer. 

You might be tempted to rely on verbal agreements and handshakes. But that strategy only puts you at risk.

A legally binding contract creates a sense of accountability and helps you minimize risks like an unexpected termination of the work or not getting paid. 

All in all, they’re extremely beneficial in the long run. Let’s take a look at some major benefits plumbing contracts offer.

» Want to grow your plumbing business? Click here to get a demo.

Benefits of Using Plumbing Contracts 

The biggest advantage of plumbing contracts is that they protect the rights of all parties involved in case of disputes. At the same time, a contract will also:

  • Save both parties valuable time and money: Everything is in writing, and nobody can wriggle out of their obligations.

  • Offer transparency on the scope of the job: Contracts ensure everyone’s clear about their role. 

  • Clarify all aspects of the current plumbing job: Contracts include the quantities and kind of materials necessary for the plumbing job and go over the responsibility of debris removal after the service ends.

  • Spell out the cost of the job: Everyone has a clear understanding of the total cost of the project, thus avoiding any arguments in the future. 

  • Define and reassure ongoing plumbing maintenance: It presents information to all parties on any annual plumbing maintenance, warranties, future and ongoing memberships for maintenance work, and any other plumbing system interventions. 

If you’re not leveraging memberships yet, you should reconsider your decision. 

As Renee Lenox, the operations and marketing administrator at Service Specialties, puts it, “memberships are definitely a key to managing your shoulder season and staying busy during those slower seasons.”

ServiceTitan allows contractors to track membership payments, expirations, and renewals hassle-free. 

Rene is using ServiceTitan’s MarketingPro to make membership management easier through email automation. 

“One way we keep in touch with our members is using MarketingPro for automation. So we will constantly remind our members that they are due for their inspections, whether it's cooling or heating or plumbing, reminding them that their membership's coming up for expiration, offering them specials monthly through MarketingPro as well.”

  • Establish all legalities: Legally speaking, the service agreement will clearly define the business transaction, i.e., the plumbing job.

  • Mention ways to deal with future disagreements: Parties know beforehand how to deal with any future disagreements. This avoids misunderstandings and confusion.

In short, a plumbing contract is the wisest step you’ll take before starting a job. But how do you frame one?

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What to Include in a Plumbing Contract

You might be surprised to know that you don’t need to hire a law firm to draft contracts. 

Here are five essential elements that make up a plumbing contract:

Component #1: Contact information

The first component of your plumbing contract should be the contact information of all parties involved. This section should include: 

  • The full names of the service provider, plumbing client, and any subcontractors

  • Their addresses (household/business)

  • Contact details, including email addresses

  • The titles/position of all parties involved, including any type of licensing a contractor may have

Component #2: Plan and period of coverage

In this section, state for how long the agreement is valid and the total estimated duration of the plumbing service you’re providing to the customer. If there are warranties involved post-service, they must become a part of this section as well. 

Component #3: Description of services

This provides a full description of the type of work that needs to be done for this particular contract. Here are some details you can include:

  • The start time and end time of services daily

  • A detailed overview of included services, such as removal of fittings/furniture, furnishing items, waste/debris removal

  • Required permits and other relevant legal documents (if applicable) according to local and state regulations 

  • Any liability disclaimers and termination clauses

Any additional services necessary, like heating, ventilation, and air conditioning (HVAC) pipework, boxing, redecorating after service completion, etc., must also be a part of your contract.

Component #4: Pricing and payment information

Spell out all plumbing pricing and invoicing details as an integral part of the contract. Include  payment terms such as:

  • Total project cost

  • Deposits service receivers make

  • Final payments

  • Any waivers

  • Due dates for payments

  • Invoice template

Component #5: Signature lines

Lastly, the signature lines on your contract must include some space for the names of the parties and their signatures. 

Once parties come to an agreement and sign the contract either manually or by using e-signature software, it becomes legally binding.

ServiceTitan plumbing software enables users to capture and process customers' signatures digitally. 

Getting an agreement that’s acceptable to all the parties is the foundational step of a smooth collaboration. However, plumbing contracts are not immune to problems. Let’s explore the most common ones below.

Common Plumbing Contract Challenges

When switching from verbal agreements to contracts, challenges may arise. You might be facing a lot of hiccups like:

  • Rushed contracts that leave out important information

  • Queries for constantly updating/changing a contract 

  • Generic contracts that don't cover specific cases/jobs (lack of personalization)

To mention a few!

Luckily all you need to tackle these obstacles is a customizable contract template. Head over to the next section to download your contract sample. 

Plumbing Maintenance Contract Template

Now that you have a clearer understanding of plumbing contracts, it’s time to see how a typical contract looks. 

Our free plumbing contract template will help your growing plumbing business save time and money when adding new homeowners to your customer base.

The ServiceTitan team has designed it for those who can’t figure out where to start as well as for busy plumbers who simply need to save time.

Download our FREE Template

The service agreement template includes editable fields for:

  • Contact information

  • Time frame of agreement and plan options

  • Plumbing work to be performed under the agreement

  • Payment information

Pro Tip: You can add any relevant certifications or licenses to the “Notes & Recommendations” column shown a little farther up. 

You can use the ServiceTitan template as is, simply by entering customer information and other details directly into the PDF. If you prefer having paper copies to share with your customers or for your internal records, you can also print out the template. 

Now Over to You

A contract will most likely end up saving you a ton of time, money, and effort. Knowing the power it gives you, customers just can’t mess with a plumbing service agreement. 

To keep all your contracts under control, you can rely on plumbing maintenance agreement software.

ServiceTitan’s agreement software helps small businesses like yours:

  • Sign error-free agreements

  • Schedule jobs

  • Contact customers

  • Collect payments

  • Build tailor-made solutions for each client

From quotations to final billings, our platform can manage all the processes for you!

Intrigued?

Let’s talk about it! 

Reach out to us, and we’ll walk you through how our plumbing software can help you!

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