Contractor, Contracts! Read All About It!

When remodeling your home or undertaking any significant construction project, selecting the right contractor and ensuring a solid contract are paramount to the success and satisfaction with your project. Here are key aspects to consider.

For the Contractor:

• License and Insurance: Ensure the contractor is licensed to perform the work in your area and carries both liability and workers' compensation insurance. This protects you in case of accidents or damage.
• Experience and Specialization: Look for a contractor with extensive experience, particularly in the type of remodeling project you're undertaking. Specialization in certain areas (e.g., kitchens, bathrooms, historical restorations) can also be a significant advantage.
• References and Portfolio: Ask for and check references from recent clients. A reputable contractor should also have a portfolio of completed projects. This can help you gauge the quality of their work and their expertise in projects similar to yours.
• Communication and Professionalism: Effective communication is crucial. Pay attention to how promptly and professionally the contractor responds to your inquiries. This can be indicative of their project management skills and how they'll handle issues that may arise during the project.
• Financial Stability: A financially stable contractor is less likely to run into issues that could delay your project. It may be appropriate to ask how they manage project finances and whether they have a history of completing projects on budget.
• Permits and Legal Compliance: The contractor should be familiar with local building codes and permit requirements. They should also ensure that all work is compliant and that the necessary permits are obtained.

For the Contract:

• Detailed Scope of Work: The contract should clearly outline the work to be done, materials to be used, timelines, and the sequence of construction activities. Contractors that do not separate each line item into a price should be avoided at all cost. Each task to be performed should be explained thoroughly and have its own price and paragraph with description of work. This clarity helps prevent misunderstandings and disputes.
• Payment Schedule: Payment terms should be clearly defined - including down payment, progress payments, and final payment upon completion. Be wary of contractors who demand a significant portion of the payment upfront.
• Change Order Process: The contract should specify how changes to the scope of work will be handled, including the process for approving changes and how they will affect the budget and timeline. Optional upgrades should not be included in the scope of work and should appear at the end of the contract as an addendum along with pricing.
• Warranty and Guarantees: Look for information on warranties for materials and workmanship. A good contract will outline what is covered and for how long.
• Dispute Resolution: The contract should have a clause outlining the process for resolving disputes, whether through mediation, arbitration, or litigation. Before signing the contract, make sure you agree with all the terms and conditions found in the dispute resolution process and termination clause.
• Termination Clause: There should be a clear termination clause that outlines the conditions under which either party can terminate the contract, including what happens with partially completed work.
• Cafeteria Plan: When deciding what is and what is not in the scope of work, make sure you initial what you want done in the full quote to ensure that you are getting what they want you to pay for.

Dos and Don'ts:

• Do listen and observe as much as possible when working with a contractor.

• Don't let them upsell you on the optional upgrades

• Don't enter into multiple contracts with the same contractor until the previous contract has been completed.

Choosing the right contractor and having a well-drafted contract can significantly affect the outcome and satisfaction of your remodeling project. It's worth taking the time to do your research and ensure everything is in order before work begins.