Reviewing a Contract
Carefully read over everything before signing a contract
So you’ve found the right home service pro, after looking over their credentials and a detailed estimate. Next you’ll enter into a formal agreement that will outline what work is to be done, materials to be used, how much it will cost and when it should be finished, barring outside issues.
If something is incorrect or left out, your signature could mean you end up with an incomplete project that doesn’t suit your taste or meet your needs.
WHAT’S IN THE DOCUMENT?
Several key elements are part of a professionally executed contract that protects both you and the home service pro. The document should include a job description that details what’s to be done, with a detailed outline of costs and the materials to be used. There should be dates to start and complete the work, as part of an agreed-upon project timeline. Payments should be tied to job-completion milestones. The contract should make clear that securing the necessary permits is the responsibility of the company.
Penalties should be in place for missing detailed completion dates. There should be a stated procedure for changing work orders. Insurance, bonding and licensing details must be included. Protections should also be built into the contract, including a termination clause describing how the deal can be voided by either the homeowners or the contractor as well as a lien release that’s in place in the event there is a dispute with any subcontractor or the company’s workers.
WRITING IT OUT
There aren’t universal rules about some issues, including down payment. In some places, a written contract isn’t even required. But it’s smart to request one anyway. This ensures that expectations are defined and sets a schedule for when benchmarks including work and pay are expected to happen. Research state laws before signing to make sure the agreement meets local standards.
If regulations set a baseline figure for down payments, try to agree to a figure as close to that as possible. The lower the upfront cash outlaw, the more incentive contractors have to expedite the work on the way to a quicker finish. Check in regularly as work progresses, and set up regular meetings to catch up on how things are going and to discuss any issues that have popped up along the way. The more you’re involved, the fewer times you’ll be surprised.