Question

Janice needs a tree stump removed from her back yard. She has agreed to hire a local handyman named Steve to do the work. Janice wants Steve to completely remove the stump and any major root systems that may still exist, all for the price of $300.

Steve offered to the job based on an hourly rate of $40.00 per hour. He estimated that the job would take between seven and eight hours for a rough estimate of $300.00. He wants to be sure that he gets paid more for his time if the job happens to take longer than expected. He also wants Janice to pay for the rental of any equipment he might need to accomplish the job in the time quoted.

After the two discuss what was needed on each side, Janice writes up the following contract and asked Steve to sign.

“ I, Janice Stevenson, agree to pay Steve Jacobsen $300.00 for the complete removal of one tree stump and related root system from my back yard.

(signed) Janice Stevenson”

Which of the following is not a change Steve should make to the contract before he signs it?
a.
Steve needs to increase the total cost from $300.00 to $500.00.
b.
Steve needs a clause about the cost of rental equipment as Janice’s responsibility.
c.
Steve needs a clause about his hourly rate, regardless of the time it takes to finish the job.
d.
Steve needs to remove the total cost of $300.00 in case the job takes longer than originally expected.

Answer 1

Answer: a.

Explanation: Janice’s contract as written is a fixed $300 total. Steve should protect himself by (1) removing or changing the fixed total so he isn’t locked into $300 if it takes longer, (2) adding his hourly rate (or otherwise specifying how extra time is paid), and (3) putting equipment/rental costs on Janice. Arbitrarily raising the stated total to $500 is not a required or appropriate single fix — he should negotiate the payment terms (hourly or agreed fixed price plus equipment costs) rather than just unilaterally changing the price to $500.