Home Improvement Contractors

Remodeling Contractors

Introduction: Many homeowners do not have the skills or tools to perform home improvement projects therefore they have to resort to experts in the building trades for help. In short, this is a matter of contracting. There was a time when home improvement contracting was a simple verbal agreement between the homeowner and a contractor. The work got done and the contractor was paid.

Verbal contracts work well as long as both (or all) parities to the agreement perform as expected (as agreed) but unfortunately that is not always the case in the real world when contracting for home repairs. Very often there are breaches to verbal contracts that are not enforceable because whatever was agreed to is not clear or is subject to the party’s interoperations and memories. It is difficult if not impossible to legally enforce a breach of an oral contract. In most states a verbal contract in excess of $500 is not enforceable in court.

Whatever your home improvement project might be you should always insist on a written contract. If the party does not want to enter into a written contract, find another contractor that will. You don’t have to be a lawyer or need a lawyer to enter into a written contract but you should be aware of what the basic elements of a legally enforceable written agreement should contain. A written contract for home improvement projects is quite simple as long as the basic elements for an enforceable contract are part of the written agreement. All contracts should include as a minimum:

• The names all parties

• An offer and acceptance of the work or service (meeting of minds)

• Consideration (the amount of money to be paid and a schedule of payments)

• Time and place where work is to be performed (date and location)

• A definition of what will be considered as acceptable work

• Signed and dated by the parties

In addition to the basic elements you may want to include explicit verbiage in considering such things as an early completion bonus or discount for your assistance in doing the work. Or you may want to include a penalty clause for work that is not done on time or to the agreed upon standard. Always include a clause to affirm the contractor’s liability and workman’s compensation insurance coverage.  This is critical to protect yourself from the contractor in the event he gets hurt on the job on your property.

Never pay for the entire job in advance. A schedule of three payments is typical; deposit to get work started (1/3), a fifty percent completion payment (1/3), and the final 1/3 when the job is complete. Do not get talked into paying the contractor for all the material in advance. Most contractors have agreement with suppliers that are based upon 30/60/90 day payment schedules.

In writing an agreement do not attempt to use flowery legalese language (party of the first and party of the second part, etc, etc.). Use basic and precise everyday English using the terms of the craftsmen trade. If things get too technical you may want to seek legal advice. Keep in mind that a written contract protects both parties.  Always work with licensed contractors with realistic contractor estimates. A real estimate should normally fall within 10% of the actual completing prices. Contracting for home improvement projects is not a difficult task but it is a necessary one if you want to be sure that you get what you pay for.

See related articles:

Working With A Contractor

Independent Construction Contractors  

A Great DIY Guide