5 Contract Mistakes That Are Costing Lawn & Landscape Contractors Thousands

Winter is on the horizon. For many lawn care and landscaping companies, this means slowing down and quieter phones. For contractors I work with, this is the perfect time for tweaking how we do business in order to come back better skilled and more profitable in the spring. 

I grew up watching and helping my father run his landscaping business. I know firsthand how hard crews work to keep lawns sharp and customers happy and make a profit. Now, as an attorney for lawn and landscape companies, I see patterns from my father's business recurring over and over in other businesses. One of the most common patterns being contractors hustling in the field but losing money on paper.

And how are they hustling hard and still not earning as much as they could? Contracts.

A solid contract isn’t “just paperwork.” It’s the difference between steady profit and late-night headaches. Here are five common contract mistakes I see every season and their simple fixes. Use this list as a way to take inventory this season. When you do, you’ll earn more per project, get paid faster, and keep the client pipeline flowing.

Mistake #1: Skipping the Contract

Too many contractors still rely on handshake deals or vague estimates. No matter how easy it feels at the time, it invites trouble. Scope creep and change orders, delayed payments, and clients who conveniently “forget” what you agreed to are all too common when there’s nothing in writing.

Quick Fix: A contract doesn’t have to be 10-pages. It can be as simple as a detailed estimate sheet the client signs or even a text message with clear terms. As long as there’s a written record that everyone involved can refer back to.

A standard setup for small crews is a detailed estimate sheet with these basics:

• Client name and address
• Services ("mow 1/4 acre, edge walkway, blow driveway" — not just “mow yard”)
• Estimated dates for starting and ending, followed by the note “weather permitting”
• Price and payment schedule
• A note saying “Change orders may result in price increase.”

Put in writing every time, even for small jobs that take five minutes or less. These simple points can save you thousands in disputes and unpaid invoices.

Mistake #2: Leaving Timelines Open

“Start by Monday” sounds fine until the client expects Monday this week, while you meant Monday of next week. Or you were expecting to start Monday, but your current project doesn’t close out like it was supposed to, so you have to push back the start date for the newest project. Vague timelines create pressure and make clients anxious. Scheduling work back-to-back doesn’t give you room to adjust before your next project if change orders, weather, or supply delays occur.

Quick Fix: List both an estimated start and completion date, with built-in buffer days. Require a deposit or waitlist to filter serious clients.

If you manage to start and finish early, the client is happy. If you finish on time, having to use all your buffers, no one is the wiser. If the project extends past your buffer, you’re not losing out on as much as you would have without it.

Mistake #3: Underspecifying the Scope of Work

Quotes like “create flowerbed in front of house” or “mow yard” are recipes for misunderstandings. Without details, one of two things can happen. For one, clients expect more than what you priced, think there’s more work you should be doing, and disputes arise when you say the job is “done.” Second, clients think that your price is too high because hey, this is an “easy” “quick” job that “doesn’t require much,” so “there’s no way it should cost this much” and now you have to do an upsell conversion for standard work.

Quick Fix: Spell out exactly what’s covered and what’s excluded, and add a small contingency fee for client-requested changes.

Examples: “Prepare flowerbed by removing weeds and existing grass, tilling and amending soil, creating a clean border edge, planting seasonal flowers according to design, and finishing with red mulch, with utility lines marked before digging.” or “Mow 1/4 acre front yard, edge front walkway, blow debris off driveway. Removal of tree limbs over 3 feet not included.”

A clear scope will equal fewer surprises, smoother upsells, and happier clients.

Mistake #4: Guessing at Labor Costs

Owners often underbid labor to stay competitive, or they fail to connect labor rates to project timelines. When the job runs long, your profit disappears.

Quick Fix: Quote labor with a clear hourly or daily rate tied to your timeline. If you need an extra crew for a rush job, the client should know that rate up front.

Protecting your margin starts with pricing the real cost of manpower, not the hopeful cost.

Mistake #5: Ignoring Payment Incentives

Deposits and late fees aren’t just penalties and incentives. They’re cash-flow lifelines. Nevertheless, too many contractors hesitate to require deposits or enforce late penalties. If you’re doing project prep the right way, you’ll spend on rental equipment, materials, and other supplies before you even make it to the job site, even if you purchase the day of. 

Requiring 10 to 50 percent deposits prior to beginning the job or as a waitlist holder, like I mentioned earlier, decreases the likelihood of running out of cash mid-project. Too often, I’ve seen contractors scrambling to pay their help or requesting impromptu cash draws because they ran low on money too soon.

Quick Fix: Calculate your true upfront expenses (materials, rentals, labor) and set a deposit that actually covers them. For longer projects, set a draw amount and frequency. For final payment, build in a late fee and present it as an early-pay discount.

Example: “$50 early-payment discount for invoices paid on the day of completion.”

Clients know what they’re paying and when they’re paying it. Plus, they feel rewarded for paying fast, and you stay funded even if they don’t.

Bonus Tip: Know Your License Limits

City, county, and state rules can cap the size or type of jobs you’re allowed to take. Bidding within the boundaries of your license limit risks fines and voided contracts.

Contractors I work with intentionally bid just under their cap, collect a solid deposit, and schedule work in phases. Their clients are satisfied, their businesses stay compliant, and profits steadily increase with customer satisfaction.

Contracts aren’t glamorous, but they’re one of the fastest ways to boost profit and reduce stress.

Start with these five fixes and you’ll spend less time chasing payments and more time building a business that actually pays you back.

Disclaimer: This article is for educational purposes only and does not constitute legal advice. While The Law Shop Alabama provides services nationwide, this article is in no way to be considered a solicitation for the provision of legal services.