Tips for Drawing Up Renovation Contracts

If you have considered doing work with a home contractor based on a verbal agreement, that is not the best idea. In many cases such agreements often result in minor or major disputes about the work. Although in the past, written contracts were not common when it comes to home renovation, today more and more people depend on them in order to avoid disputes with renovation jobs. With a written contract, there is a record of everything so that you can avoid the lengthy process involved in resolving a dispute.

However, certain cases exist that make a written contract simply not a practical idea. For such jobs, it is important to be clear on all of the work that needs to be done, what the costs are for the job, and what can happen if things do not go as planned. By having a thorough discussion with your contractor and coming up with a mutual agreement, these events generally meet the terms of a contract.

Written contracts are a good idea in the cases of complex projects that involve milestones or in the case of high value projects. Whenever you are doubtful about whether you need a written contract or not, it is a good idea to draw up a simple one.

The terms of the contract are the most important part of the contract. Here are 5 tips on what to include when drawing up a written contract. 

Detailed Description of the Project

A contract should always include a detailed descriptions of the project that outlines all aspects of the job. 

1. Costs

The costs involved that have to do with the completion of the job should also be clearly outlined. If you find that you might change your mind on something, have a part of the contract that deals with the terms regarding changes

2. Payment

All contracts should explain exactly when and how payments are to be made. 

3. Responsibilities

Disputes can often arise from failing to outline the exact responsibilities of all of the people involved in the project. Make sure that all responsibilities are clearly outlined in the contract so that there will be no confusion as to what each person is supposed to be doing.

5. Guarantees

Guarantees are the final component of a well-written contract. Make sure that if there are any guarantees on the parts or labour involved in the project that these guarantees are written directly into the contract.

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