What Essentials Should You Include in a Remodeling Contract?

 If you're planning to remodel your home, you must have a written contract. This will help ensure that you and the contractor are clear on the scope of work, timelines, and budget. It sets out the roles and responsibilities of each party and the project's expectations. It can also protect you if there are any issues down the road.

 

Trustworthy local remodeling companies will always provide a contract for legal reasons. A remodeling contract is a legal document that guides the whole project. It must be detailed and well-written to ensure a successful project while eliminating miscommunication, which could lead to issues and misunderstandings in the future.

 

What should you put in the remodeling contract?

 

Knowing the parts and format of a contract can help you write the most effective and reliable document you and your contractor can agree on. Here are the things seasoned construction remodeling contractors would like to see on the contract that you'll make with them:

 

Scope of the work

 

A remodeling contract always starts with the scope of the work. It details what's included and not included relevant to the work. It should describe specifics on how the remodeling must be completed, the materials to be used, the clean-up process for the job site, how and where the materials will be stored, and other critical details.

 

General remodeling contractors should also include the 3D renderings and floor plans before and after they perform the proposed work. These should consist ofplumbing and electric plans(both before and after), tile and flooring layouts, HVAC systems, and cabinet installation plans.

 

Your contractor must explain and define their industry jargon on the contract. How contractors refer to a part of your home may differ from what you know or call it. So, make sure every point is meticulously specified to avoid confusion and misinterpretations down the line.

 

Overall, the scope of work must discuss all aspects relevant to your project's goals from start to finish.

 

The contractor's important details

 

Local remodeling companies are required to be licensed and registered businesses. Therefore, the contractor must indicate their license number on the contract with their official company or business name. All communications between you and them must have the contractor's license number. The communications involve contracts, estimates, invoices, and proposals.

 

Ask about their insurance details and make sure they're adequately insured. You don't want to be liable for any worker injuries that may occur on your property while they're working for you.

 

Your contract must have a section covering the legal aspects, specifically who is responsible when something goes wrong. You should have access to that information, including workplace safety expectations from OSHA and specifications on worksite setups.

You should also ensure that all relevant workers working on your remodel are licensed, and their license numbers are on the contract. The information must be conciselylisted to reference them properly and streamline communication.

 

A description of Change Orders

 

Remodeling may include a clause about making repairs, which are not part of the original quote. It's a fair practice, but make sure the contract clearly outlines how you can deal with unexpected expenses. 

 

You must sign Change Orders before the contractor performs them. The Change Order clause helps prevent surprise costs while ensuring that the contractor is paid for all the work they will do, including the unexpected ones.

 

Warranty details

 

Reputable construction remodeling contractors always warranty their work, with all essential details stated clearly. The document must outline the warranty information, so you know what's covered and who is responsible for them, such as the contractor, the supplier, the sub-contractor, etc.)

 

Payment schedule

 

The contract must outline the schedule for progress payments. Consider setting the progress payments at the start of specific aspects of the project instead of at the conclusion. It's simpler to identify when a new phase of the remodeling project began instead of when it finished. It also ensures timely payments to the general remodeling contractor so they can proceed smoothly.

 

Remodeling contractors must indicate the payment terms in the contract as specific issues can occur when a strict or limited budget is involved. This section must outline when and how the contractor can receive compensation for their services as they work on your project and after completing it.

 

There are some billing methods you can consider, such as invoicing on a percentage basis, a lump sum, or based on established milestones. Choose one that's best for your budget and your contractor. The contractor must also include how much they agreed to be paid.

 

Subcontractor agreements

 

Along with the payment schedule, indicate who will pay the subcontractor and when to pay them. The contract must also include the contact information for every contractor with their insurance and license information. Consider getting a waiver of lien from the contractor for every payment made.

 

Timeline or completion schedule

 

Completion dates and times may change unpredictably, but it's good practice for local remodeling companies to have an outline of the project's timeline. The time frame must include specific start and end dates, so you can time your availability to be there for the project. The contractor should clarify when the work will be conducted, from start to finish.

 

Keep in mind that the dates may change, as there may be unforeseeable and uncontrollable circumstances that can affect your timeline. However, the contract must have a well-defined system that requires the contractor to notify you of any changes clearly or promptly. You may want to provide enough time for them to complete the project, such as by adding an extra week in the end. This way, there's some leeway for interruptions like inclement weather.

 

Clauses as required by law

 

Local construction remodeling contractors should know the clauses that apply to your project. For instance, the necessary clauses in Florida Statutes 489 include recovery fund disclosure, construction lien law disclosure, deposit escrow notice, and contractors' right to repair. The other common ones include financing contingency clauses, payment clauses, and owner liability for misinformation.

 

Find a remodeling contractor near you

 

The Remodel Pros is a contractor referral service you can trust to connect you with qualified and carefully verified local remodeling companies in your area. We'll help you find the most reliable general remodeling contractor who specializes in your needs while ensuring they're geographically near you and available to do and complete your project within a reasonable time frame. We'll match you with up to four construction remodelingcontractors who will contact you to schedule estimates.