ConstructionDeal.com Update

If you have a remodeling project coming up, there are a few things you need to consider when it comes to signing a contract with your general contractor. Without these things, you could be in for a nightmare project from hell.

Identify All Involved and the Job Location:
Clearly list every party involved in the renovation. Include info on the owner(s) of the property, the general contractor, and be specific as possible. Include names, addresses, phone numbers, email addresses. Don't forget to the list the info on the job site - if it's a house, list the address and include the county, state, zip code, and even subdivision name.

Describe the Project:
Whatever your remodeling project involves, put it in the contract. If you are renovating your kitchen, make sure there is a full description of all the work that will take place. Include the kitchen sink!

Draw a diagram of the room, include the placement of new cabinets, appliances, plumbing fixtures and electrical outlets. Describe the types of materials you want: granite counters, cherry cabinets, and a hardwood floor. List the dimensions of the room, take some "Before" pictures. The more details that are in your contract, the happier you will be. Even include whether or not you or the contractor will provide the new handles for the cabinets - - believe it or not, a problem could arise if you don't.

Who Gets Paid & When?
This is vital to any contract. Make sure you specify the payment plan for the project. 10% down, 20% when the project starts, etc. Include dates, exact amounts, written estimates, and who will be paying any subcontractors. Don't ever pay with cash, but list how payments will be made and who will be signing the checks.

Start and End Dates:
List the planned start date in the contract. You'd be surprised but not having it could mean significant delays. Having the start date gives you control in case the contractor becomes ill or is injured. When it's in the contract, they may not be able to perform the work but could hire someone else to do it. Naturally, weather and natural disasters are covered under force majeure clauses. The end date is important to have in there, too. Even though problems and delays nearly always arise when it comes to a major renovation project, there can be clauses in the contract for when a contractor misses a major milestone. Those clauses can ask for recovery of damages for severe delays from bad management of a project. It usually never comes to that, but those clauses can make sure a project gets done in a timely fashion.

Include Warranties
No completed project is ever perfect. Don't expect it. But do expect quality work to be done when and where possible. Make sure that there is a guarantee for at least a full year that products and materials won't fail and that the work done will hold up to normal "wear and tear."

Include Insurance Details:
List in the contract whether you or the contractor is responsible for liability insurance, workers' comp, or any completion bonds. Put in the names and contact details of all insurance companies involved. Make sure all the forms required are included with the contract. If you're not sure, call the insurance company yourself - don't just take the contractor's word on it.

Keep the Cooling Off Period in There:
Under normal circumstances, you have the right to cancel any contract you've signed. Don't sign a contract unless it has this clause. This allows you a certain number of days to think about and cancel the contract. Don't take anyone's word on it that it's state law and you'll be covered. Put it in the contract.

Waste Disposal and Hazardous Materials
Include details on who will be responsible for the removal of trash, debris, and dust on the job site. Also, include who will be the party responsible for removal and disposal of any hazardous waste found on the site (including mold, asbestos, lead, and other dangerous materials.) If it's not in the contract, it could be your responsibility to take care of it (and that could be expensive.)

Gone are the days of a handshake and a smile over a cup of coffee. To make sure you have a happy and successful remodel, put it all in your contract. You can never have enough information, enough detail, or enough papers. Remember - the one with the most paperwork usually wins every court case! If you're not sure, consult an attorney. If you don't get what you want in your contract, don't be afraid to walk away.

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Labels: Contracts, Remodeling Contracts