Contracts vs. Verbal Agreement

[MOWANDGO]

Ok, I haven't posted for quite a while but here it goes...I've been in business for a while now, and am wondering if I should switch to contracts vs. verbal agreement. I've learned to pick and choose customers carefully, and until last year it wasn't a problem. I had several customers up and move, and then about 5 wouldn't pay, all in the middle of my cutting season. I know things happen, but I'm wondering if I switch to contracts if I can at least retain some money instead of leaving myself hanging. I have very good relations with all of my customers, and I trust them, and they trust me. Is it time to get with the time and get contracts for this year? If so, how will contracts help me? Could I put X$$ if you cancel your service before the end of the year? Also, for those of you that do contracts, do you base it on a certain amount of cuts for the season, or based on month in the season for example april- december? Let me know what you think.

[work it]

You shouldn't do any commercial work without a contract, as you already know. As for residential....that's been debated time and time again. I don't use contracts for residential customers who have been with me for more than one season. But there is exceptions to every rule. One of my customers, who always pays but is always late, had to sign a contract for this next season. The contract stipulates late fees, time allowed to contest a bill, possible increases in cost of services due to changing economy, etc.... All new customers are bound by a "Service Agreement" which basically states that I will be paid for the work they hire me to do, and if legal action must be taken to collect they're also responsible for any and all incurred expenses. As far as cancellations....either party is allowed to cancel upon written notice. If I cancel their services it's immediate and final, but they have to give me 2 weeks notice. That allows me time to fill the void in my schedule.