Contractor ABCs
Contractor ABCs book cover    
 
Things you need to know "before" hiring a contractor!
 

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.

    • The payment schedule for the contractor, subcontractors and suppliers.

    • An estimated start and completion date.

    • The contractor’s obligation to obtain all necessary permits.

    • 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.

    • A detailed list of all materials including color, model, size, brand name, and product.

    • 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.

    • 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.

    • Oral promises also should be added to the written contract.

    • Detailed description of the work to be performed

    • Timeframe as to job progress and expected completion date (also: see timeframe section)

    • Penalty clause for any breach of the contract by either party

    • 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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