Get Legal & Insured
Simple Service Contracts: The 7 Clauses You Actually Need
Short answer
A working service contract has 7 clauses: (1) scope of work, (2) price and payment terms, (3) timeline and change-order process, (4) warranty, (5) cancellation, (6) limitation of liability, (7) signatures. Anything more is your lawyer billing you to look smart.
Customers don't read 20-page contracts. They read 1-page ones. A short, clear contract you actually send gets you paid; a perfect contract sitting in a drawer doesn't.
The 7-clause template
- Scope of work — exactly what you'll do, in plain English. List exclusions explicitly.
- Price and payment terms — total, deposit, milestones, due date, accepted methods, late fees.
- Timeline and change orders — start date, completion target, written sign-off required for changes.
- Warranty — what's guaranteed, for how long, what voids it.
- Cancellation — notice period, deposit refundability, kill fee.
- Limitation of liability — your max exposure equals contract value. Excludes indirect/consequential damages.
- Signatures and date — both parties, printed name, signature, date.
Three sentences that save you money
'Customer is responsible for ensuring access to the work site at the agreed start time. Delays caused by lack of access bill at $X/hour.'
'Payment is due upon completion. Balances unpaid after 15 days accrue a 1.5% monthly late fee.'
'Any work outside the scope above requires a written change order signed by both parties before work begins.'
Frequently asked questions
Do I need a lawyer for every contract?
Have a lawyer review your one-page template once. After that, reuse it for every job. Only pay for legal review again when you change service categories or work scale dramatically.
Invoice from day one.
Glo Invoice is free for 14 days for new owners — your first invoice goes out in under 60 seconds.
Sources & further reading
Primary sources we consulted when writing and reviewing this guide.