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What Should Be in a Home Remodeling Contract

08/22/12 12:52 PM


What Should be in a Remodeling Contract?  Smart question!

 

Construction was one of the first industries affected by the economic downturn, and perhaps we’re one of the first indicators of homeowners’ resiliency.  People are making adjustments and are moving forward with home improvements and remodeling, and enjoying beautiful transformations.  Our company has had a steady increase of calls for appointments—up 30% from the “great recession.”   Families want to do home remodeling in Phoenix to meet their needs and have the benefits of their customization sooner, than later.  After all, the longer one delays, the fewer days they have to enjoy their remodeled home!

 

A well-written contract is a useful communication tool to define what is expected of both parties.  Once you have chosen an experienced and reputable professional home remodeler, expect to review and sign a written agreement that details the scope of work, design, selections, cost and payment schedule.  Here are items to have included:

 

  • The company’s name, address, phone number, and Registrar of Contractor’s license number
  • Statement of general liability insurance, workman’s compensation insurance, bond, (are they a certified drug-free company?)
  • Visual representations: CAD drawing/blueprint, sketches of floor plan and elevations that show what the remodeler will do, where, with measurements
  • Scope of Work detailing pre-construction responsibilities, work to be done for each home system (electrical, plumbing, etc.) including what will NOT be done, e.g. landscaping not included
  • Detailed specifications of products and materials to be ordered/used to identify brand name, model number, color, size.  If decisions have not been finalized, then allowances set aside for anticipated budget cost of each item.
  • Information on who will pay for and obtain building permit, and home owner association approval, when applicable.
  • The timetable for the project with anticipated start and completion dates.
  • Supervision and construction procedures.
  • Job site management, such as designated bathroom or portable toilet in yard, contractor cleanup, care of your property, what items will be donated, recycled
  • Procedures for handling change orders
  • Termination Rights, Right to Rescind, and provisions for conflict resolution
  • Payment Schedule
  • Warranties

 

Plan to have a preconstruction meeting to go over the contract with the Salesperson, Designer and Supervisor assigned to your project so all have a clear understanding of what is expected.  With everyone on the same page, soon you will reap the rewards of your home made new!

 

Happy Home Remodeling!

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