# 3 day right to rescind



## Leo G (May 12, 2005)

In Connecticut you need to put in all of your contract the right to rescind. That gives the client a 3 day period to think their decision over and get out if they sign on the dotted line and return the contract.

Can I do something like that for me in a contract. Give myself the right to reject the job within the same 3 day period. So if you found out you made a mistake you can back out? If you have the correct verbiage in the contract, would it fly?


----------



## loneframer (Feb 13, 2009)

Sounds like a great idea, don't know the legality though.


----------



## denick (Feb 13, 2006)

Leo,

It's been a long time since I read it but in the CT State booklet on the Contractor Registration Laws. It might mention a contractors cancellation rights. It's late but I seem to remember something about it in there.


----------



## Bill Z (Dec 10, 2006)

Leo G said:


> In Connecticut you need to put in all of your contract the right to rescind. That gives the client a 3 day period to think their decision over and get out if they sign on the dotted line and return the contract.
> 
> Can I do something like that for me in a contract. Give myself the right to reject the job within the same 3 day period. So if you found out you made a mistake you can back out? If you have the correct verbiage in the contract, would it fly?


Yep. Mine says I can cancel for any reason within 3 business days. Did it once when a salesman sold a huge concrete driveway for practically nothing. Also, 14 days, if we can't obtain financing that is suitable to the company. I'd give you the language, but it's kinda jagged and needs to be rewritten next time we print contracts.

I'm not in CT.


----------



## dubz (Sep 8, 2008)

denick said:


> Leo,
> 
> It's been a long time since I read it but in the CT State booklet on the Contractor Registration Laws. It might mention a contractors cancellation rights. It's late but I seem to remember something about it in there.


I was just reading that tonight actually.

Here's a link. I'm on pg 15 and it doesn't say anything about it yet.
http://www.ct.gov/dcp/lib/dcp/pdf/hic_booklet__revised_107.pdf


----------



## Leo G (May 12, 2005)

I was just curious about it because in another forum two guys from different companies were talking back and forth about a job they had bid on. They both came up with a comparable price for the job and then the HO reduced the scope of the work by eliminating face frames, glazing and some other things and got another price from company A. The the HO said to company B that he had gotten another bid for this amount for the same scope (original scope) of work. Company B reduced his price to get the job and did. Company A, which knows company B and are on friendly terms told him he had just been ripped off by the HO because they lied about the scope of the work. Now they have a signed contract (company B) for the original scope of work but being paid for the reduced scope of work. 

In times like these, where the HO's can and do take advantage of hungry contractors by having them bidding against each other. In normal situations everyone has enough work and if they lose a bid, so be it. But in todays world with no work people are desperate. And in being desperate they can be taken advantage of. It would be nice if we could have the same protections as we are forced to give to the client.


----------



## dubz (Sep 8, 2008)

Yeah, hopefully karma will take care of it. It's an interesting question about the contract clause. A lawyer will have to answer it I guess. Realistically though, is someone going to sue for breach if you give back a deposit and bow out gracefully?


----------



## Leo G (May 12, 2005)

If it is in the contract and legal, how can they? They have the same right, do we get to sue them if they back out..............no.


----------



## Wolfgang (Nov 16, 2008)

Leo G said:


> I was just curious about it because in another forum two guys from different companies were talking back and forth about a job they had bid on. They both came up with a comparable price for the job and then the HO reduced the scope of the work by eliminating face frames, glazing and some other things and got another price from company A. The the HO said to company B that he had gotten another bid for this amount for the same scope (original scope) of work. Company B reduced his price to get the job and did. Company A, which knows company B and are on friendly terms told him he had just been ripped off by the HO because they lied about the scope of the work. Now they have a signed contract (company B) for the original scope of work but being paid for the reduced scope of work.
> 
> In times like these, where the HO's can and do take advantage of hungry contractors by having them bidding against each other. In normal situations everyone has enough work and if they lose a bid, so be it. But in todays world with no work people are desperate. And in being desperate they can be taken advantage of. It would be nice if we could have the same protections as we are forced to give to the client.


Huh...who woulda thought...:whistling


----------



## jmic (Dec 10, 2005)

Leo G said:


> In Connecticut you need to put in all of your contract the right to rescind. That gives the client a 3 day period to think their decision over and get out if they sign on the dotted line and return the contract.
> 
> Can I do something like that for me in a contract. Give myself the right to reject the job within the same 3 day period. So if you found out you made a mistake you can back out? If you have the correct verbiage in the contract, would it fly?


Leo don't be so cheap. Spend a few bucks and consult with an Atty. After all they have to feed their family also. :laughing:


----------



## Leo G (May 12, 2005)

Go dig a hole old man. :laughing:

Something like this would be very unlikely to happen to me. I price what it takes me to do the job with a profit. If they don't like the price I don't want the work. I was just trying to see if anybody knew? Apparently it sounds like a new idea. Maybe I can start a trend, do you think I can patent the idea?

That would involve a lawyer, huh. .....never mind.:whistling


----------



## JonM (Nov 1, 2007)

I have this in my contract: 

This agreement shall become binding only upon the contractors written acceptance and upon the contractors commencing performance. Upon such acceptance and commencement of performance, this shall constitute and become binding upon the parties herein. :thumbsup:


----------



## EPD (Jun 23, 2008)

Leo G said:


> I was just curious about it because in another forum two guys from different companies were talking back and forth about a job they had bid on. They both came up with a comparable price for the job and then the HO reduced the scope of the work by eliminating face frames, glazing and some other things and got another price from company A. The the HO said to company B that he had gotten another bid for this amount for the same scope (original scope) of work. Company B reduced his price to get the job and did. Company A, which knows company B and are on friendly terms told him he had just been ripped off by the HO because they lied about the scope of the work. Now they have a signed contract (company B) for the original scope of work but being paid for the reduced scope of work.
> 
> In times like these, where the HO's can and do take advantage of hungry contractors by having them bidding against each other. In normal situations everyone has enough work and if they lose a bid, so be it. But in todays world with no work people are desperate. And in being desperate they can be taken advantage of. It would be nice if we could have the same protections as we are forced to give to the client.


i was called to look at finishing a half finished siding job , first contractor walked (apparently underbid, and realized it very soon) now shes got TWO GUYS TEN BUCKS AN HOUR EACH!!!!!!!!!!! THIS IS A LOCAL CONTRACTOR WORKING WITH A GUY FOR TWENTY BUCKS AN HOUR!!!!!!!!!! i gave her a quote of 3800 to finish the job after calculating the rough amount of sq ft left over ( about 1.50 a sq ft ) and i told her id finish the remainder of the trims aswell, .....normally i charge 2.0 and 1.25 ln ft of cap just install ..
and she calls me back and says im sorry im going to let these gguys finish! 

i wanted to stiletto this 20$ per hour crew on the spot 

ill starve before i let the homeowner walk all over me like that again, 
my mistake


----------



## pcplumber (Oct 12, 2008)

Leo G said:


> In Connecticut you need to put in all of your contract the right to rescind. That gives the client a 3 day period to think their decision over and get out if they sign on the dotted line and return the contract.
> 
> Can I do something like that for me in a contract. Give myself the right to reject the job within the same 3 day period. So if you found out you made a mistake you can back out? If you have the correct verbiage in the contract, would it fly?


We wrote this statement on the face of our contract:

"This contract shall not be enforceable and will be considered a bid until the Buyer and Seller have in their possession a copy of the contract signed by the other and until that time Seller has the right to withdraw the bid."

This gives us the option to back out before the contract is signed in case we decide we don't want to do business with the customer for any reason.

I don't think there is any law or court that is going to allow you to commence the work and walk away, since the customer will have, at least, some type of legal repercussion for lost time, the inability to contract with a reliable contractor, etc.


----------



## Ed the Roofer (Dec 12, 2006)

Look at the bottom of a Home Depot Contract.

It allows for it to not be binding until accepted by management or awaiting management approval and also says that the price is dependent upon the pre-job remeasure that needs to get done prior to starting.

Ed


----------



## Grumpy (Oct 8, 2003)

Here is what I have written into my proposal, actually the terms of service which is found on the reverse side of every proposal "This proposal is not valid until accepted by the your company name Production Team and scheduled by the your company name management."

When a customer asks what that means this is simply what it means... "We re-inspect ever job sold and re-measure before we commit to doing the job. In other words if the roof has 2 layers to be torn off and I only saw one... No harm no foul. Here is the new price or you may have your down payment back. " This was put into the contract because we are all human. We all make mistakes. I have made some whoppers both in and against my favor. Also it is to protect the company against malicious salesmen who purposely sell a job cheap just to get a sale. That kind of stuff doesn't fly here. Essentially the same as the home depot contract and reasoning, which is exactly where I got the idea. 


The only advice I have for you is to contact your lawyer.


----------



## Warmsmeallup (Apr 2, 2008)

In the same vein but different approach, we have a separate claus pertaining to 'rush jobs' stating that if the project has to be started earlier than the 3 day recind period allows, the client understands they forfeit the choice to recind with a separate line for signatures.


----------



## Ed the Roofer (Dec 12, 2006)

Warmsmeallup said:


> In the same vein but different approach, we have a separate claus pertaining to 'rush jobs' stating that if the project has to be started earlier than the 3 day recind period allows, the client understands they forfeit the choice to recind with a separate line for signatures.


That legally only applies if there is an emergency or harship.

Ed


----------



## Snobnd (Jul 1, 2008)

Leo, I looked up some info on the CT.gov site here is a link. Look for the Home improvement
booklet http://www.ct.gov/dcp/cwp/view.asp?a=1625&Q=276344&PM=1

The PDF file was to big to load on this page, I think by default, Both you and the HO have the right to Cancel within 3 days. 



http://www.ct.gov/dcp/cwp/view.asp?a=1625&Q=276344&PM=1


----------



## Leo G (May 12, 2005)

I didn't notice anything about the contractors right to cancel.




> 4) Notice of Cancellation
> Both copies of the “notice of cancellation” should include the date by which
> the homeowner may cancel the transaction (i.e., no later than midnight of the
> third business day after the date of the transaction). Saturday is a business day
> ...


----------



## Snobnd (Jul 1, 2008)

What about changing this a little-

4) Notice of Cancellation
Both copies of the “notice of cancellation” should include the date by which
the homeowner _OR_ _ LGR_ may cancel the transaction (i.e., no later than midnight of the
third business day after the date of the transaction). Saturday is a business day
in Connecticut.


----------



## mulchmadness (Jan 6, 2008)

I response to quick sales by salesman. Can anyone help me with a worksheet or procedure in place for top sales staff that are salaried and commissioned by the job to fill out by job for the cost of the job sold minus expenses, materials leaving profit and calculates sales commissions. What percentage is fair? for the sales staff. I would like to put this workshhet into place to hold accountability that we are indded making money on each and every job before % commissions are paid out. Any input would help.


----------



## Mr. Mike (Dec 27, 2008)

Mulch,

Please start a topic on that call it sales commission sheets or something like that.


----------

