Now that you have prescreened and selected the home improvement contractors you will be working with, and everything is agreed upon, as was discussed in the previous articles, the next step is to put it all down in writing.
The idea is to end up with a piece of paper, or contract, detailing your expectations and responsibilities, as well as those of your contractor’s, and of all parties involved in your project. It is a legal document, and it is binding to all parties who sign it.
Here are a few things you will want to include in your contract.
Make sure that all the contact information, namely contractor’s name, address, phone number, insurance company policy and license numbers, is included. Make sure that the physical address of the company is included, rather than post office box number. In case of any dispute, you will need to contact all involved parties, including the company owner and the insurance company.
Make certain that all scope of work is accurately described in your contract.
Include the date when the work will begin and, and approximately when it will be finished. Even though your contractor may be unable to set a precise date when the project will be completed, due to possible unforseen circumstances, this provides you both with the basic time-frame.
It is very common for changes to happen after the work has started. Due to all kinds of unforseen circumstances, additional work can come up, to be added to your project. In these cases, all changes to your initial agreement should be based on what is called “change order”. In fact, a change order is a mini-contract for additional work, with the additional work description and costs, and how the extra work will impact the date of your project completion. Include a change order provision in you contract.
Discuss in your contract how and when the contractor will receive payment for completed work. Keep your agreement balanced, and negotiate with your contractor a payment schedule that is good for both of you.
It often happens that projects are terminated. A termination clause allows you or your contractor to terminate the agreement, if your project is not going well. Also, to be protected in case there is any dispute, your contract should specify what forms of arbitration should be conducted and by whom.
Make sure the guarantee on both labor and materials is included. Ask for all written warranties to be provided with any appliances, materials or equipment used in the project.
Before you sign the contract, take time to read it carefully. Make sure that your project is accurately described, and that everything agreed upon and promised is stated in writing. This is an important part of working with your home improvement contractors, and is essential to the success of your project.
