The Contractor's Contract: What Should Be Included?

A smooth remodel project is only 8 tips away.

You've chosen a contractor for your remodel project. During the initial pre-construction and estimating process, many things have been discussed, so trying to keep track of conversations without a contract can lead to discrepancies and conflict. To ensure a smooth working relationship, follow these 8 simple tips on what should be included in a contractor's contract.This way, if there is a misunderstanding, both parties can refer to the contract for resolve.

The contract. The contractor's contract is a must.  Do not begin any project without one.

An address. Be sure you have the contractor's physical address and not just a P.O.box.  If you need to track your contractor down, you won't find him at a P.O. address.

A license number. Many states require persons who want to perform general, building, and residential construction to become licensed. Proof of a license means your contractor has taken the required courses, passed the state exam, and is playing by the rules.

Insurance. If an accident happens while working in your home, you want to make sure you are not held liable. Liability insurance protects the homeowner, contractor, and the contractors employees. Make sure your contractor is carrying contractor's liability insurance.

Scope of work.  The contractor's contract should present a description of the work to be performed. If your contractor is performing work off your designer's plans, the designer and the feature sheet date should be referenced in the contractors contract.

Agreement price and payments. The contractor's contract should state the agreed upon fee to complete the project. Your payment schedule, deposits, and draws should also be outlined in the contract.

Exclusions. There are certain limitations inherent in any addition or remodel project.  Your contractor should make every effort to anticipate all expenses, however there will be unforeseen conditions or defects which the owner may be be responsible for such as unexposed mechanicals damaged in existing walls, rot and deterioration, structural defects, insect infestation, and defects to roofing and flooring.

Warranties.  The contractor's contract should include a limited warranty against defects in original materials and workmanship which results in actual loss or damage for one year from the date of job completion. Upon written notice, your contractor should agree to either repair or replace, at his option.


Source:  Houzz.com/ Kenny Grono

Contractor Tips for Remodeling on a Budget

Remodel without sacrificing your style or budget

Remodeling can be expensive, and many times more costly than you originally expected, especially  if you start to make changes during the process.  Stay on plan by following these contractor tips for remodeling on a budget.

1.  Find a contractor that has a creative mind and is considerate of your budget.  Be honest about your budget from the start.  If a contractor knows you are serious about doing business with them, and not shopping around for a bunch of estimates,  they will spend more time finding creative ways to meet your criteria.

2.  Time is money. Pick a contractor and architect that will work in completing your plans in a timely manner. Before finalizing this step, make sure you are 100% satisfied with them. Making changes during the remodeling process means costly change orders down the road.

3.  Shop for good deals. Once your plans are complete, and you know what is needed for the project, shop around at second hand stores, tag sales, and Craig's list for budget friendly items.  It's important this step is done prior to the start of the remodel. Making changes during the process will effect both budget and cost.

Using salvaged items does not mean you need to compromise style. These 42" raised panel cabinets, the stainless steel appliances, and the black granite counter tops are all second hand finds. If you have these items on hand prior to the start of the project, a creative contractor can make it work.

4.  Do some work on your own. This should be addressed during your first meeting with the contractor as some may not allow this.  If your contractor is open to it, do the work when it's convenient to the contractor, such as on the weekends.

5. Have a good attitude. You  know the golden rule, treat others how you want to be treated. Treat your contractor and his subcontractors with respect. Your kindness will go a lot further, especially in the case that you decide on some last minute changes.

6.  Make prompt payments.  Abide by the terms of your contract and meet payment deadlines.  Failing to do so can hold up the project. Developing a good relationship with your contractor, means they are more likely to go that extra step for you when  needed.