The Purpose of the Home Improvement Contract

Despite the wave of DIY fever, the urge for home improvement occasionally exceeds the ability of the homeowner and a contractor is in order. Contractors are simply people with training and expertise who are paid to do a specific task. Sometimes the contractor is a plumber or electrician carrying out a specific task for a few hours or is a general contractor taking on a big job that needs employing subcontractors. In either way, the home improvement contract is often an essential document and the initial step in the project.

From the Beginning

It's a good idea to get a few quotations once a project has been decided. The project has to be defined and the requirements highlighted to achieve this. Obtain at least 3 quotations. Don't be taken in by very low quote as it can mean that substandard material will be used, inexperienced workers will be hired or that the price will increase as the project proceeds. Prepare the home improvement contract with your selected contractor. It should include all of the project's demands.

The home improvement contract should comprise of specific materials, all scopes of work to be done, start and completion dates, a warranty on the work and materials, the contractor's specific duties (site cleanup, getting permits, etc.), a clause limiting work to the home improvement contract and stating that any additional work requires a change order, the manner of settling disputes should be highlighted and a clause allowing either party to back out of the contract within three days of signing without penalty.

The home improvement contract should also include a payment schedule and not make a large deposit. Ten percent is just nice with regular payments made by schedule or at the time that certain benchmarks are completed. Be sure that all the work is done to your expectation before you make the final payment. Use the home improvement contract to spell out all understandings between you and your contractor. If you expect the contractor to personally oversee certain aspects of the job, put it in the home improvement contract.

In the home improvement contract, if you want the contractor to give liability insurance and worker's compensation. Don't leave anything to chance. Most contractors have several projects going at the same time and verbal agreements can be forgotten, misunderstood or confused. Before signing the home improvement contract, ask any questions to ensure that you understand what the meaning of each clause. Home improvements can be stressful, let the home improvement contract take some of the stress away.

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