Home Remodeling Contracts – Tips and Precautions: It’s Always Buyer Beware

Preparing For The Project

My project was fairly modest. It was a combination of making some cosmetic adjustments by replacing some windows and doors, rebuilding a deck and balcony and sprucing up a few other areas of my house.

In my interviews with several contractors I asked about their take on materials to be used, the length of time it would take, the complexity of the work, etc. This is pretty basic stuff for any construction project.

But, as I narrowed down my choices and took a look at the contractors’ estimates I came across some fairly large gaps in the language used in their written contract for service. Some of the contractors balked at some of the language I wanted included that I thought was fair and basic – one contractor who looked at my additions immediately said he wanted nothing to do with me. Others were skeptical and tried to convince me that the items I wanted included were unnecessary.

What did I want included in my contract? It’s surprisingly simple, as you’ll see. What’s more I didn’t come up with these items because I’m overly knowledgeable about construction – I’m not. These were just basic and logical and I needed no more than a few minutes of web research to figure that they were important enough that I wanted them included in my contract. They might also be important for you to include them in any construction contract you are asked to sign.

6. Contractors use sub-contractors for much of their work. Specialists like plumbers or electricians are brought to the job site to do specific work as directed by the contractor. They are not usually employees of the contractor. Accordingly, put language in your contract that clearly states the contractor is responsible for the payment of any sub-contractors and shall obtain lien releases from sub-contractors as may be necessary. You should also include a statement like, “contractor agrees to indemnify and hold harmless the owners from any claims or liability arising out of the work performed by the contractor under the agreements with said sub-contractors.” You don’t need a lawyer to draw up that language, it’s very basic wordage that is standard in contracts, but you should make sure it definitely is in your contract.

7. In my project, and in most construction work, there will be materials to purchase. In most contracts the specific material should be detailed. If you are going to buy the materials yourself you’ll know what you are paying. However, if you want to have your contractor take care of buying all the specific materials for your job (and he quotes a cost for the materials in the contract) you should first check the price with your local lumber yard or hardware store and second, insist in the contract that you get copies of the invoices for the materials so you can check that the price you agreed upon is indeed the price of the material that was purchased.

8. Detail in your contract how you are to pay for the work. Contractors usually include this – obviously because they want to be paid. But, there are variations. Usually you are required to make a “down payment’ on the work, perhaps 10 to 15 percent. Then, depending on the extent of the work, you will be required to make additional payments at various points as work proceeds with a final payment at the end. However, all this is negotiable. Don’t agree to pay so much up front or during the project that what you owe at end is miniscule. You should hold out at least 25 percent. That’s your leverage to make sure all work is done as promised and your worksite is spotlessly clean and ready to move in.

I finally found a contractor who had no problems including my additions in the contract. Remember, if it isn’t in writing it doesn’t exist. Don’t feel or be made to feel “silly” for including what might seem obvious. When it comes to construction projects it’s better to feel “silly” than “sorry.”