Legal

    Service contract

    A written agreement defining the work, price, and terms between two parties.

    Definition

    Best practice for any job over $500. Should include scope, price, payment terms, change-order process, warranty, and termination clauses. A signed quote can serve as a contract.

    Related terms

    Quote

    A fixed-price offer to perform a job that, once accepted, is binding.

    Scope of work

    The written description of exactly what work is included in a job.

    Change order

    A signed addendum modifying the price, scope, or schedule of an existing job.