Before you have a contractor start a large remodeling project on your home, it is crucial that you have a contract drawn up. This will not only protect the contractor, but it will also protect you. If you have never dealt with remodeling contracts before, there are five things that it should contain under all circumstances. These are as follows:
1. The Scope of the Project
One of the most basic aspects of a remodeling contract is regarding the job itself. There should be a section that clearly details what the project consists of – from start to finish.
2. A Payment Schedule
In the contractor agreement, you should also make sure to clearly outline a payment schedule. This should define how much will be paid and when it will be paid. As a general rule, work milestones should be included. For example, if a room is being added onto the home, 10% of the payment can be paid once the foundation, basic wiring and plumbing have been completed.
3. Project Start and End Dates
It is also crucial that your contract list when the project will begin and when it should end. It is possible for issues to crop up throughout the duration of the job, such as rain delays, out of stock materials, etc. Therefore, these dates are simply to help keep the project from dragging on for months longer than necessary and to provide you with some evidence in the event that you need to take the contractor to court.
4. Change Orders
Another important part of the agreement is an area that dictates change orders. Change orders are any changes with the job that affect the initially discussed price. As the homeowner, you want to ensure that your contract says that the contractor must get your approval before moving forward with any type of change that would impact the price. These changes should be typed up and then signed by both parties upon your approval. This ensures that the contractor doesn't try to get more money out of you unnecessarily and that unforeseen extra costs are not thrown on you without any prior notice.
5. Contractor's Warranty
Some contractors will offer a warranty to you. However, if you accept it, you may be limiting their liability as well as your options in the event that something goes wrong. In many cases, this is because the warranty does not favor you and it favors the contractor instead. Therefore, if you are inclined to accept the contractor's warranty, it is recommended that you have a legal professional review the warranty clause before agreeing to it. Either way, the contract should state whether you accept or decline the contractor's warranty.
To learn more, contact a company like Priore Custom Homes and Renovations.