What To Look For In A Remodeling Contract

A contractor without a contract is just a worker and his or her word. Even the most honest person would be hard-pressed to keep track of all the conversations that go into planning for the average construction project. That’s where a good contract comes in. Many a conflict can be avoided if both parties can simply consult the contract when there’s a misunderstanding on either side. Contracts can save relationships, and your house.

These 10 tips, while just a starting point, will get you thinking about the most critical thing to have in hand before work starts.

1. The contract itself. A contract protects the parties involved. Just because you had a great conversation during the first meeting at the house, and even though the work is only supposed to take two days, you’ll regret not having a contract when one of you forgets half of that great conversation and the work isn’t completed after two weeks.

2. A physical address. Should you need to track down your remodeler after work has begun, you won’t find him or her at a P.O. box. Confirm that there is a physical address where you can go.

3. License. While in some cities getting a contractor's license may be more a matter of writing a check than verifying skill, check to see that your remodeler lists a license required for the work being done. A license may mean that your remodeler passed the required exams, or it may just mean the state knows where to find them to collect taxes. But it also means they have done the paperwork and are playing by the rules. In Pennsylvania, the Home Improvement Contractor Registration is a requirement, and protects the consumer. All remodelers in PA must have this number in addition to any local licenses.

4. Insurance. Injuries can occur on a construction site. If the location is your home and your remodeler does not have the proper insurance, you may be held liable. Check with your locality for the proper amount of liability insurance, and if the remodeler has employees, check to see whether they carry worker's compensation insurance.

5. Scope of work. There are many details to get right in a renovation, so it’s critical to write everything down before work begins. This is the best way to get everyone on the same page. Before work begins, the designer will have drawn up detailed plans. Make sure the contract references a specific set plans so you have something to point to when the flooring in the laundry room is different from what you requested.

6. Duration of work. Though projects often take longer than predicted for many legitimate reasons — some caused by the client and some outside the remodeler's control — the expected project duration should be put in writing. It may not be in the contract, but they should provide you with a production schedule before work begins, so you know roughly what will be happening each week. Having a timeline will help calm your nerves if progress hits a slow spot.

7. Exclusions. A good contract should include a list of exclusions. These might be related to areas that will not be visible until the walls are opened up after demolition, or the level of cleaning you should expect after the work is complete. Also, talk to your remodeler about things like the likelihood of finding asbestos behind the walls. They won't be able to say for sure, but they can speak from experience and help you plan your contingency budget (which is another thing that should be referenced, as well as how change orders will be handled).

8. EPA lead safety certification. Contractors working on homes in the U.S. built before 1978 should be certified in lead-safe practices by the EPA. In a nutshell, it’s about minimizing and containing dust during work, which is vital for the safety of you and your family.

9. Payment schedule. While payment schedules can vary by the job, they should always be agreeable to both parties involved. Payments tied to milestones in the project are better than those tied to percentages of completion. It’s easier for you to see if the drywall is up then know whether the project is 30% complete.

10. Warranty. The standard warranty for work is one year from substantial completion. If you’ve checked the remodeler’s physical address and gotten recommendations from people you trust, you’ll know where to find them later if needed.