Clarity, Simplicity & Purpose – the secrets to a solid home improvement contract
Clear Verbal Communication & Detailed Written Contracts Can Prevent Home Improvement Nightmares
Before starting major home improvements or modifications, you must build a solid foundation with clear communication, both verbally and with a written contract. A thoroughly detailed contract goes a long way in making sure that you and your contractor understand what work is to be done and what it will cost.
Your well-written and detailed contract should specify:
1. All the work the contractor has estimated to perform and all the materials the contractor will use, including the quality, grade and brand of each material. Who will pay for said materials. If you have a set of plans is the price based on these plans?
2. When the work will start and end with any possible, projected delays.
3. Who is in charge of getting any necessary permits from the city or county. (Most people prefer the contractor do this.) That will be included in the bid.
4. How and when you will pay for the work. A thoroughly outlined payment schedule with payments matching work performed.
5. Be sure that everything you’ve agreed to is written down, including any guarantees on the quality of work. If you don’t understand any of these items, ask a remodeling coach or attorney to go over the contract; or, ask the contractor to explain. This will show their ability and willingness to communicate.
6. Before you sign any home improvement contract, it’s smart to find out what legal protections you have if things go wrong. Can you fire your contractor and under what conditions? This may vary from state to state. Check the laws in your state.
7. Be sure to get a copy of everything you sign and keep it in a file specified for this project. Also, don’t approve any plans or blueprints unless you understand them and never sign a contract unless the blanks are filled in.
More (crucial) Points to Consider
1. Payments:
Arrange to pay in installments as the work goes along, perhaps in thirds (depending on the size of the job), I would suggest that whatever payments are outlined, they match the work completed unless the monies have been added for (extra) materials or change orders. These will more than likely be paid for at the time of purchase or completion.
2. Keeping Track:
Be sure you know how you can change the work plan if needed and how much each change will cost you. It helps to keep a daily journal of work done, materials delivered, changes or additions to your plans, and any problems you encountered. You also want any change in writing.
3. When the job is done:
Sign the certificate that the work is complete and pay the contractor the final payment only after you, and any necessary local building authorities, inspect the work and find everything is completed satisfactorily. When this is done – pay the final bill in full!
The contractor should put in writing that they have paid all subcontractors and suppliers and provide you with a lien release. This is important because suppliers or subcontractors may be able to file a lien against your property if they aren’t paid by the contractor or builder. A lien is a document filed in the county and prevents you from selling your home until the lien balance is paid. Again, check your state laws.
4. What if the job’s not done right?
Sometimes, in spite of your best efforts, the job turns out badly. If this happens, first try to work out the problem with the contractor. Contractors often consider it a matter of pride to settle differences with their clients. After all, they want you to recommend them to other possible clients.
Your contract will be invaluable if you have to take the time and emotion to sue the contractor. Depending on the amount involved, you may want to sue in Small Claims Court. If the judge rules in your favor and the contractor still doesn’t pay up there may be a bond in place, which may allow you to get some of the monies back.
5. Communication, communication, communication
The best way to avoid a “job gone wrong” is to keep the lines of communication open throughout the project and be diligent about this. Clarity, simplicity and purpose are your best tools.
Eye for Detail, Inc. is a general contracting firm in the San Gabriel and San Fernando Valley areas of Los Angeles. We bring an experience to the table that is based on 25 years in the home improvement industry coming from a place of remodeling on purpose.
This means: When the contractor is running a profitable company and paying both themselves and their employees they’re running a business-on-purpose. When the homeowner is open and honest about what they desire as well as being honest about their expectations they’re entering into this relationship in a purposeful manner.
