Start a Car Restoration Business

Client Agreement Term Sheet

Companion to the lessons "Legal, titles, and the rules that bite" and "Deposits, milestones, and getting paid." A term sheet for drafting, for review by the client's and your own advisors; not legal advice.

Client: Vehicle: VIN: Date:

Never take a client car without a written agreement covering scope of work, timeline, cost and payment schedule, and what happens when teardown reveals more than the estimate assumed. Verify title: valid, in the client's actual name, free of liens, before work begins or money changes hands.

1. Scope by phase (not one number)

PhaseScope of workNot-to-exceed
1. Teardown and assessment 
2. Bodywork 
3. Paint 
4. Mechanical 
5. Final assembly 

Contingency of 10-20% lives inside the estimate, visible, with your hours stated. A checkpoint before each new phase begins; nothing beyond the current phase is committed today. How it sounds at signing:

"The full scope is phased. Phase one is teardown and assessment, and it's a not-to-exceed of eighteen hundred dollars. At the end of phase one you get a photo record, a findings list, and revised numbers for every remaining phase, and you decide what continues. Nothing beyond phase one is committed today."

2. Deposit

TermAgreed
Deposit amount (sized to phase one plus the first materials order)
What it funds (materials on order and teardown labor, not your rent) 
Refund conditions (written before anyone signs) 

Forum practice runs from materials-only to half down (one shop-side painter asks 25-33% at signing; thread consensus settles on staged payments tied to progress). Keep phase one small so the first leap of faith is a puddle.

3. Milestone gates and billing

GateInvoice for work finished behind itAmountCollected
Teardown and assessment complete  
Bodywork complete  
Paint complete  
Mechanical complete  
Final assembly  

Bill against phases, not the calendar: a fixed monthly charge leaves you financing the customer's project from working capital the moment anything stalls. Working rule: at every gate, money collected should equal or exceed what you have spent on that car. Walkthrough offered at each gate; references supplied; photos documented from day one.

4. Change-order form

Added workAdded costSchedule impactClient signature / date
   
   

Yes with a signature, every time. When teardown reveals the surprise the contingency predicted, the revised phase estimate is a change order too, not a conversation. Verbal additions are the margin killer nobody reports.

5. Abandonment and stopping terms

TermAgreed
Definition of project pause / abandonment (client stops funding or responding for days) 
Storage terms after pause 
Shop's rights on abandonment (per your counsel; title law governs what you can and cannot do with the car) 
Client's right to stop at any gate, paying work completed 

The deepest risk is an owner who quietly runs out of money mid-project. Milestone gates find that out at week three instead of week forty, while your exposure is one phase deep.

6. Signatures

Client: Date:    Shop: Date: