Wednesday 2 March 2016

Top 9 Building and Remodeling Contract Issues


Before signing a building or remodeling contract with a contractor you should be absolutely sure that all agreements are included. You do not want to mess this one up because you will have to live with the consequences. That’s why some considerations should be made before signing the contract. Here`s a list of the most important ones.

  • Names and dispute resolutions. Of course, names are the most important things in any legally binding document. Building contracts are inked by two parties and require the contractor’s full name and other personal information such as address, telephone and professional license number. These contracts are not as easy as booking professional end of tenancy cleaning services, for instance, which usually don’t need a contract at all as it`s just a one-off cleaning.
  • A list of attached documents. In a building or remodeling contract, there is a number of details that have to be specified such as the materials to be used and their quantity and quality, brand name, colour, etc. You should also make sure that the contractors will pay attention to your carpets or you will need a carpet cleaning after the remodeling. 
  • Liability and insurance. The contract should include responsibilities and risks incurred by the both parties. Make sure you have that in writing.
  • Dates - Starting and completion dates should be clearly assigned and repercussions if the competition date isn’t met. 
  • Itemized expenses. This will include the material and labour charges. 
  • Payment schedule. This is the schedule which shows when the payment by the homeowner must be done and the repercussions if payment is late. 
  • Final inspection. This part of the contract clears warranties and guarantees of worship and materials. 
  • Construction site protocol. In this clause, it is determined is the homeowner has access to the construction site.
A “right to cancel” clause. With this clause, you would have 3 days after you first signed the contract to cancel it.

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