Hey all,
For those of you following my posts,,,, I'm preparing for my first timber sale as a consulting forester. I'm wondering what kind of a contract should I come up with between the landowner and myself? What are some of the major details that need to be clearly stated? Is there any sample contracts available on the internet? I just need something to go by. Thanks!
I'm not sure what should be in the original contract, but one thing I know should be in it is something to address any changes to any of the conditions in that contract are to be made in writing, signed by all , and followed. If any changes to the existing contract are made, The changes will be made in writing and signed prior to execution of that change. Then follow those conditions. If doing anything differently from the original scope of the contract you( logger , owner, forester, buyer, seller, outside contractor) is important enough to mention or ask for in a phone call, it is important enough to put in writing. I'm sure most contracts have addressed this issue, but it doesn't do anyone any good unless you ( all parties) follow it.
For starters, you're going to need to have a contract between you and the landowner. You'll need your names and addresses. You should also have the property discription you are talking about. It would include the state, county, and location. A deed number might also be handy, but not necessary. This protects the landowner in case he has more than one property.
State what it is you're going to do. In this case, you're going to layout a timber sale and you are going to mark the trees with paint. You'll be soliciting bids. You will have an expiration date. You may also put in there if you want the landowner to pay you if the sale does not go through. Include your fees.
The landowner will have to defend the product at his expense. That means if there are claims against the land and/or timber, he has to defend it. He should also guarantee the lines. He should also retain the right to reject any and all bids.
That's just a starting point. I'm sure there will be others that can add to the list.
contracts are legally binding. If you're pretty green, it might be a good idea to have a trusted source look over a contract that you write up. It's very easy to miss something, and you want to make sure that you protect yourself, and your client.
This is the agreement that I use with the landowner.
AGREEMENT TO PREPARE & MANAGE PRIVATE LAND
TIMBER HARVEST
Thank you for choosing ARC Consulting Services to assist with the timber harvest on your property in the (Description) ______________; Section(s):________; T_____N/S; R______W/E; _________________Township; _________________ County, Michigan.
ARC Consulting Services will provide the following services at ______% of the timber sale value. Payments are to be made as timber sale receipts are received.
1. Establish and mark cutting unit boundaries within the property boundaries as described by the Property Owner.
2. Designate and determine the volume and minimum value of timber to be harvested.
3. Prepare a timber sale proposal with bid sheet and send a timber sale offering out to several reputable timber buyers inviting bids.
4. Prepare a timber sale contract covering all the terms and conditions of the timber sale.
5. Collect all payments and administer the timber harvest on through completion.
6. Provide all supplies, equipment, marking paint, travel time, computer time, and expenses necessary to complete the project until closure.
7. Hold the Property Owner harmless for any injury, death or property damage suffered by ARC Consulting Services or its agents and employees suffered in the performance of this Agreement.
The Property Owner shall be solely responsible for defining the boundaries of their property and ARC Consulting Services relies upon the representations of the Property Owner as to their boundary lines and ownership of timber in performing this Agreement to Harvest Timber.
The Property Owner agrees to indemnify and hold ARC Consulting Services harmless for any cutting or marking of trees or boundaries or other trespass occasioned or incurred by ARC Consulting Services or the successful Bidder in reasonable reliance upon the property boundaries as represented by the Property Owner. ARC CONSULTING SERVICES RELIES UPON THE PROPERTY OWNER'S REPRESENTATIONS OF THEIR BOUNDARY LINES AND EXERCISES NO INDEPENDENT JUDGMENT AS TO THE ACTUAL BOUNDARY LOCATION.
If you cancel the proposed timber harvest after the timber has been designated or marked for harvest, for reasons other than a low bid, you agree to compensate ARC Consulting Services for all sale preparation and marking at a rate of $__________ per wooded acre for _________acres. You also agree to not sell any portion of the property involved in the sale until the timber sale is completed.
This agreement will expire ________ years from the date of the signing, and is renewable by mutual consent.
If you are in agreement with the above, please acknowledge by returning a signed copy of this Agreement to ARC Consulting Services.
Sincerely,
RONALD E. SCOTT, CF, ACF (Ret.)
Signed: ____________________________, Date: _________________
(Landowner)
Signed: ____________________________, Date: _________________
(Landowner)
Address:
Telephone # ( )
Thanks Ron S!
You summed that up pretty good!!! Exactly what I was looking for. I'll be sure to put my own twist on it.