Contingency Agreement


Does anyone have a contingency agreement for insurance work that they wouldn’t mind sending me. There’s been several times that I’ve done the legwork for the homeowner to get their roof replaced through insurance and then they end up choosing another contractor because they find out they can somehow get some money back in their pocket. I would really appreciate the help.


Man,I feel for you.So many times in the past I ate dinner with the customer(cooked by the customer),golf,horseshoe’s,restaurants and the list goes on.

The result being,kicked in the nads by an under bidder or blatantly ignored by my new found friend.(homeowner?)

A big check will change a greedy persons mind in a New York minute.

The reason (I can only assume) that noone has thrown you a contingency form (That I know of) is because the coin it cost to have one drawn from an attorney.I have one that is a bit vague BUT it worked before I contacted my attorney.(Thanks A.D,LMB and others)

This form is filled with loop holes but it is a start.The only thing about this form is IF you have a savy law knowledgable customer you could lose.I had no problems with it for several years.

I have no problem posting it for anyone to use BUT I accept NO responsibility for anyone losing a contingency agreement by using it.Like I said I used it for a couple years and had no problems.

Yeah, as long as I had something… It would be better than nothing… To where at least they would think they were binded… If they wanted to fight it that hard then I might as well move on… I had one local roofer I met give me one form, I can’t remember the name of it right now, but after I read it I would feel uncomfortable making my customer sign it… It basically said if they signed it and then if insurance wouldn’t cover the whole bill then I can basically charge whatever I want and they have to pay it…

But I would appreciate the contingency agreement you were Talking about… My email is Kyle.Maxwell@bigfootroofing. C o m

I am confused. If you gain one roof replacement job through an insurance claim, you should make well over $1,000. If you’re concerned about this, it stands to reason you do insurance claim work at least occasionally. You’ve expressed a serious concern about not having a contract. Seems to me it would make sense to invest $500 to $1000 and have a local attorney well versed in consumer sales and contract law draft FOR THE STATE YOU ARE OPERATING IN draft a contract specifically for you. A solid contingency agreement is an essential tool if you’re going to be in the insurance side of the business. If one of your nail guns failed, I assume you’d promptly go buy one to replace it. It is an essential tool to your work. If your dump trailer failed, you’d promptly fix it. Again, it is an essential tool to your trade. What I’m saying here is the contingency is more essential than either of the previous tools I mentioned because if it fails, you may not have a roof to use that nail gun or dump trailer anyway. I can never understand why I see so many roofers that have the best tools, a shiny brand new truck but won’t spend $400 on an up to date computer, $ on productivity enhancing applications, etc… These days, those latter items and having a qualified, savvy person to use them may be more essential to the health and profitability of your company than the nail gun and dump trailer. I’m not saying I think that is right, good or anything else but I am saying it is a fact of life.

Very kind offer by Roofmaster. But his contract wasn’t drafted for your state. He admitted it the contract he was sending you was marginal and dated. I’ve invested around $2,000 in our contingency and I can tell you it doesn’t have anything in it about obligating the HO to spend money with us if the insurance denies or underpays the claim. What it does do very well, I believe, is protect our interests in the event the claim is approved. If you do a google search online, I am sure you can find a basic contract you can download for free or a minimal amount. I think that is silly though. Using an analogy similar to what I used before, if you could buy a nail gun for $25 but it jammed every 5th nail, would you think that was a bargain and continue to use it? So really, why would you consider doing something totally different with your contract?

Yeah, i appreciate the feedback… i will just go ahead and find a construction lawyer in my city and see what he could do for me. i think it would be well worth it…

one question i have… what happens in this situation?

i get a contingency agreement signed and the insurance company ends up saying that will be paying well below what they should be paying and i would barely or not even cover my costs on the job and i cant get them to approve any type of supplement… do you add something in saying that i have a way out in that scenario?

[quote=“BigfootRoofing”]Yeah, i appreciate the feedback… i will just go ahead and find a construction lawyer in my city and see what he could do for me. i think it would be well worth it…

one question i have… what happens in this situation?

i get a contingency agreement signed and the insurance company ends up saying that will be paying well below what they should be paying and i would barely or not even cover my costs on the job and i cant get them to approve any type of supplement… do you add something in saying that i have a way out in that scenario?[/quote]

Absolutely! “This Agreement is automatically terminated should the insurance company deny the claim OR (Your Company) be unable to reach agreement on a suitable claim settlement.” This statement protects you and the HO and it is very clear.

Kyle, I will send a copy of my agreement to you that you can possibly use as a template and will hopefully save you some money with your attorney. It was done in Adobe Illustrator so you won’t just be able to edit it without having that same software app. I would recommend that you have somebody use it to design a similar form THEN take it to an attorney for edits. That way, the attorney is not starting with a blank sheet of paper. As did Roofmaster, I make no guarantees or warranties for how it will work for you in your state and business. I think one of the most important things is the bluff factor, i.e., the HO who may be considering an end around looks at the contract and/or consults their attorney only to form the opinion the contract is well written, professional and would in fact hold up in court. I’ve seen many competitor’s contracts and the vast majority are a joke with so many loopholes they’d never have a chance were it actually taken to court.

Well i would definitely appreciate that, and I have adobe illustrator also so there shouldnt be any problems… i had put my email in one of the previous posts but it is

and again, thanks… i will get in touch with a lawyer and show him this and go from there…

could someone send me a contengency agreement as well please.

Far shayl,Contingencies $750.00 O.B.O,gently used :badgrin:

Hey there… I was wondering if i could get a copy of the Contingency Agreement also. I would like to take it to my Attorney so he could tweek it for company without haven’t to start from scratch… Thanks a bunch guys
Can u send me a PM

Hey BigFootRoofing… Did you have any luck with that Roof Agreement?

Legal agreements, including contingency agreements, are mostly for perception.

If you have completed work, and were not paid, a contract allows you to collect. This part of the contract must be written properly, with teeth.

Write whatever you want in plain English for the rest of the agreement. Contract law, and legal enforcement of such, is intended to determine the intent of the parties who enter into the contract.

That being said, I highly recommend against taking action against someone for any other reason that to collect unpaid bills. Anything else is borderline dishonest, and is grounds for someone to trash your reputation.

Our contract is very simple for anyone to read, because we wrote it with that intent. We did not have a lawyer write it. If your contract is full of legal BS, and statements that people perceive as unfair, they will question your integrity. Why include all that for something you will never utilize anyway.

I would be happy to give you a copy of our contract if you message me.

I’m also looking for a contingency agreement. Been in business over 30 years, professional and honest. Can’t count how many times I’ve helped homeowners to get their insurance claim approved, only to be kicked to the curb when the check arrives when they choose a low-ball contractor for the work, then pocket the rest.
I also would really appreciate anyone sending one thru.

(I don’t know how to input email yet, above has dot-com)

Thanks much.

I would suggest you read the thread about the Homeower disregarding our Contract in the Roofing Business forum.

I would then recommend you not get a contingency agreement but get a contract. I explain in that thread why a contingency agreement won’t hold up in court. If you ever take someone to court over breach of contract, it is likely you’ll use an Attorney Therefore, get an attorney to write your contract. The old saying is true, anyone who represents themselves in court has an idiot for an attorney and a fool as a client. If you don’t plan on enforcing your contract in court, in the event it is breached, I see no reason for having one.

I have spent close to $5,000, over time, developing and fine tuning our contract as well as the other legal forms we use with great success. I’m sorry, but I’m just not going to give that away.

If you’re looking for samples of contingency agreement, here it is (Roof Contract Form -Contingency Agreement)
With that said - this is not a legal contract. Like Authentic_Dad said you will need to use an attorney for that.

Hope this helps!

Would you please send me a copy of your contract so I can get an idea? I read a lot of your posts and you seem extremely knowledgeable. Thank you for your help!

I have spent around $10,000 in legal fees and many hours of my own time getting our contract to where it is. I just don’t casually pass it around. Sorry.

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If they buy a roof from you they get a free copy :smiley:

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I like your thinking.

Have been learning the buisness one one of the best, that is something the owner of the company would say.