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Electrical Services Agreement

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ELECTRICAL SERVICES AGREEMENT

This Electrical Services Agreement (the Agreement) is made and entered into as of by and between:

RECITALS

WHEREAS, Client desires to retain Contractor to perform electrical services at the location listed in Client Address and Contractor is qualified and willing to provide such services under the terms set forth in this Agreement; and

WHEREAS, Contractor represents that it holds all required licenses, has appropriate insurance, and will perform all work in a professional manner consistent with industry standards and applicable codes and regulations; and

NOW, THEREFORE, in consideration of the mutual covenants and conditions set forth herein, the parties agree as follows:

SCOPE OF WORK

Services shall include labor, installation, testing, and any commissioning work described above. Any services not expressly included shall require a written change order executed by both parties.

PAYMENT TERMS

Final payment is due upon substantial completion and acceptance of the work, subject to completion of punch list items as reasonably determined by the parties. Contractor shall invoice Client in writing for each payment due.

CHANGES AND ADDITIONAL WORK

Any change to the Scope of Work shall be made only by written change order signed by both parties. Change orders shall specify adjustments to the scope, schedule, and compensation. Contractor shall not proceed with change order work until a change order is executed unless otherwise agreed in writing.

PERMITS, COMPLIANCE AND SAFETY

Contractor shall secure all permits and inspections required by applicable codes for the electrical work unless otherwise stated in the Scope of Work. Contractor shall perform the work in compliance with all applicable laws, codes, regulations, and ordinances and shall maintain a safe worksite.

INSURANCE, INDEMNITY AND WARRANTY

Contractor shall maintain commercial general liability insurance, workers' compensation, and automobile liability insurance in amounts customary for the trade and shall provide certificates of insurance upon reasonable request. Contractor agrees to indemnify and hold harmless Client from claims, damages, losses, and expenses arising out of Contractor's performance except to the extent caused by Client's negligence.

TERM AND TERMINATION

This Agreement shall commence on and shall continue until completion of the Scope of Work or until , unless earlier terminated in accordance with this section.

Either party may terminate this Agreement for material breach if the breaching party fails to cure the breach within the notice period. Upon termination, Client shall pay Contractor for all work performed and materials procured prior to termination, subject to offsets for Contractor defaults.

CONFIDENTIALITY

Each party shall keep confidential and shall not disclose to any third party any non-public information obtained from the other party in connection with the performance of this Agreement, except as required by law or as necessary to perform the services, and provided the receiving party ensures confidentiality with its agents and subcontractors.

LIMITATION OF LIABILITY

Except for willful misconduct or gross negligence, neither party shall be liable to the other for consequential, incidental, indirect, or punitive damages. The total liability of either party for any claim arising from this Agreement shall not exceed the total contract amount paid by Client to Contractor under this Agreement.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles.

ENTIRE AGREEMENT

This Agreement, including any incorporated exhibits and executed change orders, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, understandings, and agreements. No modification shall be effective unless in writing and signed by both parties.

MISCELLANEOUS

Contractor is an independent contractor and not an employee of Client. Contractor shall be responsible for payment of all taxes and benefits for its employees and subcontractors. If any provision of this Agreement is held invalid, the remaining provisions shall continue in full force and effect.

Client Printed Name:

By:

Date:

Contractor Printed Name:

By:

Date:

Enter text✕

What an Electrical Services Agreement Covers

An Electrical Services Agreement is a written contract between a property owner or manager and a licensed electrical contractor that defines the scope, schedule, price, safety obligations, and warranty terms for electrical work. Typical uses include installations, repairs, upgrades, and maintenance on residential, commercial, or industrial properties. The agreement allocates responsibilities for permits, inspections, materials, testing, change orders, and payment milestones. Well-drafted agreements reduce disputes by specifying deliverables, required licenses and insurance, acceptance criteria, and procedures for handling delays, defects, and termination.

Why a Clear Agreement Matters for Electrical Work

A clear Electrical Services Agreement protects both parties by setting precise expectations for scope, cost, timeline, and safety compliance. It reduces change order disputes and provides a contractual basis for lien, warranty, and insurance claims if issues arise.

Why a Clear Agreement Matters for Electrical Work

Who Typically Prepares or Signs This Agreement

Owners, property managers, licensed electrical contractors, and general contractors commonly rely on this agreement to document electrical work terms and obligations.

  • Residential owners and landlords who need upgrades, repairs, or tenant-fit electrical work.
  • Commercial property managers overseeing tenant improvement or maintenance projects.
  • Licensed electrical contractors securing work terms, payment schedule, and liability limits.

Use a signed agreement whenever cost, schedule, safety, license verification, or warranty obligations should be recorded in writing.

Essential Clauses to Include

A professional Electrical Services Agreement contains explicit sections to manage risk, define deliverables, and set payment and termination rules.

Scope of Work

Detailed tasks, drawings, specifications, and exclusions that describe exactly what the contractor will perform and what is outside the contract.

Schedule

Start and completion dates, milestone deadlines, allowances for weather or permit delays, and liquidated damages or extension procedures.

Payment Terms

Contract price, invoice schedule, retainage, acceptable payment methods, and consequences of late payment including interest or suspension of work.

Change Orders

Process for written change orders, pricing adjustments, timeline impacts, and required approvals before additional work proceeds.

Insurance & Indemnity

Required insurance coverages, limits, certificate requirements, indemnity allocation, and responsibility for third-party claims.

Warranties & Acceptance

Warranty period, remedy options for defects, final inspection, and procedures for punch lists and acceptance testing.

Step-by-Step: Completing the Agreement

Follow these steps in order to prepare, confirm, and execute a compliant Electrical Services Agreement.

  • 01
    Gather Documents: Collect licenses, insurance certificates, plans, and permits.
  • 02
    Draft Scope: Write a detailed scope and attach drawings or specifications.
  • 03
    Agree Terms: Negotiate schedule, price, and warranty terms in writing.
  • 04
    Execute: Obtain signatures, dates, and required certificates before starting work.

Customizing and Completing the Agreement Online

Set up an online workflow to collect signatures, attachments, and approvals with clear role responsibilities.

Field Configuration
Contractor Signature Field Assign required signer and enable signature + date.
Attachment Field Require upload of license and COI before signing.
Conditional Clauses Show permit clause only if jurisdiction requires permit.
Audit Trail Enable event logging for timestamps and IP address capture.

Where to Send and File the Executed Agreement

Route the signed contract to internal and external recipients and determine a primary record copy for retention.

  • Owner Copy: Send a signed PDF to the property owner or account contact.
  • Contractor Copy: Provide contractor with an executed copy and attachments.
  • Project Folder: Store the executed agreement in the project management repository.
  • Permit Office: Include contract or proof of scope when applying for local permits.

Digital Signing and Technical Requirements

Use an eSignature platform that supports secure signatures, audit trails, and required integrations for contract management.

  • File Formats: PDF and DOCX supported
  • Integrations: Connect to CRM and cloud storage
  • Authentication: Email, SMS, or stronger options

Ensure the chosen platform complies with ESIGN and UETA and supports retention, audit logs, and any industry-specific compliance such as HIPAA when applicable.

Common Timing, Deadlines, and Processing Expectations

Track critical dates in the contract and align them to permitting, inspection, and payment schedules to avoid scope delays.

Permit Submission:

Submit before work begins; approval timelines vary by jurisdiction.

Work Start Date:

Begin work on or after the agreed start date.

Milestone Payments:

Invoice at agreed milestone completion dates.

Final Inspection:

Schedule inspection before final payment release.

Warranty Period:

Start date tied to final acceptance or inspection date.

Frequent Preparation Errors to Avoid

  • Vague scope descriptions that lead to differing contractor and owner expectations and disputes over extra work.
  • Missing license or insurance verification which can void claims and expose owners to liability for unlicensed work.
  • Absent change order process that creates disagreements over additional charges and project timeline impacts.
  • Incorrect payment terms or undefined retainage that delay final settlement and incentivize incomplete punch-list items.

Key Risks and Contractual Consequences

License Violations: Civil penalties or stop-work orders.
Uninsured Work: Increases owner exposure for third-party claims.
Lien Exposure: Contractor may file mechanic's lien for unpaid amounts.
Delay Damages: Late completion can trigger liquidated damages.
Warranty Claims: Contractor may be required to repair defects.
Contract Termination: Wrongful termination can create breach damages.

Required Contract Information at a Glance

Contractor License: State license number and expiration
Insurance Certificates: Policy types and limits required
Scope Reference: Attachment numbers or drawing IDs
Payment Terms: Price, milestones, retainage
Permits: Who secures and pays for permits
Warranty Period: Duration and remedies described

Who Can Sign and What Authority Is Needed

Owner / Client

Authorized signers include property owners, corporate officers, or designated managers with signing authority; the signer should be identified by title and authorized in company records or a delegation of authority.

Contractor / Electrician

An authorized officer or business owner of the contracting firm must sign; if subcontractors perform work, include a signature block for the prime contractor and require subcontractor attachments as needed.

Key Project Milestones

Track these numbered milestones to monitor progress from estimate to final acceptance.

01

1. Estimate Issued

Provide detailed bid and attached specifications.

02

2. Contract Signed

Obtain executed agreement and required certificates.

03

3. Work Commences

Begin on scheduled start date after permits issued.

04

4. Final Inspection

Complete punch list and secure inspection sign-off.

Illustrative Use Cases

These examples show how agreements reduce confusion and document responsibilities on typical projects.

Residential Panel Upgrade

Homeowner hires licensed contractor for panel replacement

  • Contractor provides schematic and permit filing
  • The written agreement defined scope, payment schedule, and a two-year warranty, preventing disputes after final inspection.

Commercial Tenant Fit-Out

Landlord approves tenant electrical modifications for a retail space

  • Contractor coordinates with landlord and building inspector
  • The contract included phased payments tied to inspections and required contractor COI, streamlining final acceptance.

Practical Tips for Accurate and Efficient Agreements

Apply these practices to reduce administrative friction and legal exposure.

Verify Credentials Early
Confirm contractor license and insurance before work begins; document verification in the contract to avoid unenforceability and liability exposure.
Use Clear Attachments
Attach drawings, schedules, and material specs by reference to prevent ambiguity about what is included in the price.
Define Change Orders
Require written change orders signed by both parties; include a turnaround timeline for approval to avoid work stoppages.
Preserve Audit Trail
Retain signed PDFs, emails, and receipts with timestamps to support claims, lien filings, or warranty disputes.

eSignature Vendor Comparison for Executing Agreements

Compare common features and starting prices for eSignature providers used to execute Electrical Services Agreements. signNow is listed first per platform comparison standards.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial Yes, 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions

Answers to common questions about completing, signing, and enforcing Electrical Services Agreements.


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