Contracts
GET IT IN WRITING! GET IT IN WRITING! GET
IT IN WRITING!
You should not count on getting anything you haven’t
included in writing. Contract requirements vary by
state. Even if your state does not require a written agreement
or your contractor insists that “their word is their
bond,” ask for one. A contract spells out the who,
what, where, when and cost of your project.
Make sure that every detail of your contract is
in writing. A contract is a standard
business practice. The contract spells out the scope
of the work and the contractor’s responsibility. Make
sure that the contract is understandable, i.e. in English
and not legalese. Any contractor who resists signing
a contract should be eyed with suspicion.
Just because someone seems nice doesn’t mean they
are going to keep their word. Bad contractors are good
actors and professional liars who know many ways to scam
honest people. Make sure you read all pages of the contract. If
you are contracting for major renovation or major remodeling,
have your lawyer examine the contract.
Your contract should include (but is not limited to):
The contractor’s name, address, phone, and license
number, if required.
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The payment schedule for the contractor, subcontractors
and suppliers.
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An estimated start and completion date.
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The contractor’s obligation
to obtain all necessary permits.
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How change orders will be handled.
A change order — common
on most remodeling jobs — is a written authorization
to the contractor to make a change or addition to the
work described in the original contract. It could affect
the project’s cost and schedule. Remediless often
require payment for change orders before work begins.
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A detailed list of all materials including color, model,
size, brand name, and product.
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Warranties covering materials and
workmanship. The names and addresses of the parties
honoring the warranties — contractor,
distributor or manufacturer — must be identified.
The length of the warranty period and any limitations
also should be spelled out.
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What the contractor will and will
not do. For example, is site clean-up and trash hauling
included in the price? Ask for a "broom clause." It
makes the contractor responsible for all clean-up work,
including spills and stains.
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Oral promises also should be added to the written contract.
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Detailed description of the work to be performed
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Timeframe as to job progress and expected completion
date (also: see timeframe section)
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Penalty clause for any breach of the contract by either
party
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A written statement of your right
to cancel the contract within three business days if
you signed it in your home or at a location other than
the seller’s permanent
place of business. During the sales transaction, the
salesperson (contractor) must give you two copies of
a cancellation form (one to keep and one to send back
to the company) and a copy of your contract or receipt.
The contract or receipt must be dated, show the name
and address of the seller, and explain your right to
cancel.
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