Why I Stopped Relying on Handshake Deals

I Still Prefer Handshake Deals — So Now I Record Our Agreement (And Clients Appreciate It.)

I've been a handyman in SW Austin for 15 years. Before that, I was a remodeling contractor here in Austin, then in California, then back in Austin again.

I worked as an unlicensed tradesman in California doing small projects — mostly for clients who wanted to avoid building permit fees and inspections for work that didn't add enough value to justify the cost. I also worked for a mid-sized contractor in San Francisco on multiple projects throughout the city.

That company worked on a time-and-materials basis on everything. The administrative overhead of tracking multiple change orders left everyone dissatisfied. It just wasn't cost-effective. The relationship and trust between the contractor and the client were what mattered the most.

But I also learned the company had been stiffed for over $15,000 by a client who claimed he'd never authorized the work. Classic he-said-he-said. Their client was an attorney. They wrote off the loss, expecting his referrals would offset it.

When I got my California contractor's license, I followed the same time-and-materials practice — then moved back to Austin. I'd left in 1988 following the devastating real estate crash of 1987.

The country, and Texas in particular, has been through many boom-and-bust construction cycles. After years as a carpenter, the crash of 2008 offered yet another opportunity to change direction. The handyman trade offered time-and-materials work, payment at the end of every small job, and a flexible schedule. It avoided contracts and the risk of clients who refused to pay. That still happened once, from a client who moved out of state, but their reasons for not paying still make no sense.

I still prefer handshake agreements. Contracts establish an adversarial framework before the first nail is driven, and my financial exposure on small jobs isn't great.

But I record my conversations now. With ONDA Replay, I get a written record of exactly what the client asked for — their words, not my summary. I'm less likely to miss something important and have to return on my own time.