Contractor City Blog

The term “contractor” includes those individuals or firms that offer services to improve real property. This includes, but is not limited to, home building, remodeling, room additions, swimming pools, painting, roofing, landscaping, plumbing, electrical, heating and air conditioning, and installation and repair of mobile homes.

There are many excellent remodeling contractors that do superior workmanship and make a home remodeling experience both effortless and enjoyable.

A home improvement contract or remodeling contract is essential for both contractors and owners. Remodeling contracts don’t need to be a mystery. If you haven’t taken a good look at your remodeling contract you should.

Hiring or being hired as a remodeling contractor or building contractor is like hiring any other professional. Never let your personal friendship with a contractor or owner get in the way of preparing a proper agreement. You must focus on the importance of not only having a remodeling contract, but also understanding it.

Experienced, professional remodeling contractors have been around long enough to know what needs to be in the contract to cover every circumstance and minimize problems. Owners with previous remodeling or building projects will have a basic understanding of the necessary components of remodeling contracts.

With the public penchant to sue whenever something seemingly goes wrong, or even worse when things don’t seem to go the way they want them, both the remodeling contractor and home owner is more vulnerable than ever. Remodeling contracts for every project regardless of size, have become critical to the process.

Some states do not require remodeling contractors to be licensed or bonded. This leaves consumers at risk for fraud or inferior workmanship, and contractors for claims of such. According to the National Association of Home Builders (NAHB), the Federal Trade Commission (FTC) requires that contractors provide a termination agreement for customers to cancel their home remodeling contract if the contract was signed somewhere other than the contractor’s office.

There are a lot of horror stories about people hiring a contractor to do some work on their home without first signing a remodeling contract. Just as many horror stories are told about owners who make change after change, with the contractor being forced to bear the financial burden. Solid remodeling contracts are key.

If your remodeling contract is poorly written with little attention to detail, chances are that description will also fit the finished product. If your house is damaged, or the renovator walks off with your money, you have no recourse if you have not first signed a remodeling contract. If an owner disputes workmanship or materials, you as contractor will have to eat the costs.

Even if there is no problem with the work being done, a remodeling contract can help solve any disputes between owner and contractor. Review your remodeling contract carefully and adjust it to make sure it protects you in terms of payments, work schedules, and project specifications.

Keep this in mind regarding remodeling contracts: if something is not written in the contract, it does not not exist.

Explain to your remodeling contractor clearly what you want done and how. Itemize the items to be used. As a contractor, listen to your customer and include all particulars in your agreement.

Here’s what you need to know to make sure the remodeling contract you sign includes solid legal protection for you and your home. A typical remodeling contract should include but is not necessarily limited to the following items and agreements: 

Date of the contract
Names and addresses of all parties, phone, fax, email contacts and procedures
Contractor’s License Status and Number
Description of the property, including the street address
Start and completion date of construction
Complete descriptive narrative of the work to be completed
Statement concerning removal of construction debris
Assignment of responsibilities for obtaining permits and all required permissions
Assignment of responsibility for obtaining insurance certificates
Total monetary amount of the contract
Payment schedule
Liability Waiver
Change Orders
Plans, drawings, blueprints, sketches
Specifications for assemblies, products, fixtures, fittings and appliances to be installed
Substitution policy
Allowances including for labor and material
Exclusions to the contract
Authorized delay conditions
Penalties or fines for non-compliance and non-performance
Provisions for Late performance
Provisions for access to the construction site
Owner, lender and third-party inspection procedures
Arbitration clause and methodology for resolving potential disputes
Warranties and service policies
Any documents required by state or local laws  

Remodeling contracts may require additional points and/or special language relevant to the particular job. Allowing the contractor to make adjustments to certain aspects of the project up to a certain dollar amount is normal in most remodeling contracts.

It’s essential to get all these items right in a construction contract or remodeling contract for both parties and should be considered as quite normal in the hiring process.

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Excellent remodeling contracts can be downloaded here: http://www.contractor-city.com/hoimfopl.html