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The Purpose of the Home Improvement Contract

In spite of the wave of do-it-yourself fever, the urge for home improvement sometimes surpasses the ability of the homeowner and a contractor is in order. Contractors are just individuals with training and expertise who are hired to do a specific job. Sometimes the contractor is a plumber or electrician doing a specific job of a few hours. Sometimes the contractor is a general contractor taking on a big job that requires hiring subcontractors. Either way, the home improvement contract is an important document and often the first step in the project.

From the Beginning

Once a project has been decided on, it’s a good idea to get a few estimates. To accomplish this, the project has to be defined and the needs spelled out. Get at least three estimates. Don’t be taken in by a very low bid. It can mean that substandard material will be used, inexperienced workers will be hired or that the price will go up as the project proceeds. Write the home improvement contract with your chosen contractor. It should include all of the project’s demands.

The home improvement contract should include specific materials, all aspects of the 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 mediating disputes should be spelled out 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. Don’t make a large pre-payment. Ten percent is about right with regular payments made by schedule or at the time that certain benchmarks are met. Never make the final payment until you are sure that all of the work is done to your satisfaction. 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.

If you want the contractor to provide liability insurance and worker’s compensation, put it in the home improvement contract. 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. Ask any questions before signing the home improvement contract to make sure that you understand what is meant by every clause. Home improvements can be stressful, let the home improvement contract take some of the stress away.