If you’re planning a major renovation project for your home, it’s crucial to get all the details in writing. A well-written contract between you and the contractor can prevent misunderstandings, disputes and expensive surprises down the road. A construction lawyer can help you make sure the contract includes key sections, such as a detailed description of work to be performed, payment schedules and how changes will be handled.
The first section of a home renovation contract should detail the work to be done, including what will be demolished or constructed, the type and color of materials and fixtures to be used, any additional fees and the total price of the project. This should also include the estimated completion date, as well as a process for addressing any changes in scope of work.
This section should also clearly state who is responsible for obtaining necessary licenses and permits, if required. This is important because large-scale renovations often uncover hidden problems that need to be addressed before the job can proceed. This could involve obtaining new building permits or addressing structural issues. It’s also important to determine who will remove and dispose of the debris from the job site.
In this section you should specify the terms for how the contractor will be paid, including whether a payment plan is available and what completed milestones should warrant an installment payment. For example, a common practice is to have payments pegged to city inspections and approvals for early project milestones like foundation and framing, as well as later milestones such as rough plumbing and electrical work, drywall and carpentry. The final payment should always be at least 10 percent of the total cost and should only be made when the “punch list” is complete and to your satisfaction.
Insurance and Liability: This section specifies any required insurance coverage, such as general liability and workers’ compensation, as well as any exemptions or limitations to these requirements. It should also specify the extent to which the contractor’s work will be guaranteed or warrantied, and how any claims or disputes are to be resolved.
There are many other components to a home renovation contract, but these three are particularly critical. If you’re not comfortable reading and interpreting this kind of legal document, or if a dispute arises during or after the project, a construction litigation attorney can represent your interests in a lawsuit or other resolution to the issue. These attorneys have extensive experience in negotiating and litigating construction and renovation projects, and can provide you with the information you need to protect your rights. Contact us for a free consultation today.