The states differ in the contract requirements. Even is the law does not provide, ask for one. A contract document clarifies the who, what, where, when and costs of your project. The agreement should be clear, concise and complete. The basics of a contract are as under:
- The contractor’s name, address, phone, and license number, if required.
- The payment schedule for the contractor, subcontractors and suppliers.
- An estimated start and completion date.
- The contractor’s obligation to obtain all necessary permits.
- How change orders will be handled. A change order — common on most remodeling jobs — is a written authorization to the contractor to make a change or addition to the work described in the original contract. It could affect the project’s cost and schedule. Re-modelers often require payment for change orders before work begins.
- A detailed list of all materials including color, model, size, brand name, and product.
- Warranties covering materials and workmanship. The names and addresses of the parties honoring the warranties — contractor, distributor or manufacturer — must be identified. The length of the warranty period and any limitations also should be spelled out.
- What the contractor will and will not do. For example, is site clean-up and trash hauling included in the price? Ask for a "broom clause." It makes the contractor responsible for all clean-up work, including spills and stains.
- Oral promises also should be added to the written contract.
- The following documents must be included with the contract.
- A written statement of your right to cancel the contract within three business days if you signed it in your home or at a location other than the seller’s permanent place of business.
- During the sales transaction, the salesperson (contractor) must give you two copies of a cancellation form (one to keep and one to send back to the company) and a copy of your contract or receipt.
- The contract or receipt must be dated, show the name and address of the seller, and explain your right to cancel.
Keeping Records
Keep safe all the documents and may include the copies of the contract, change orders, and correspondence with your home improvement professionals. Keep a track of all the phone calls, conversations and activities. It is wise to take the photographs and keep a record of all the activities as the job progresses in case you have problems with your project — during or after construction.
