What to Look For in a Home Renovation Contract

  • By Jeremy Thompson
  • 02 Jun, 2016
A well written home renovation contract is thorough, and explains exactly what is to be done and how. The contract should also explain potential risks and issues and how they will be handled. Failure to read and understand the contract offers you as a homeowner no protection, but understanding your home renovation contract and making […] The post What to Look For in a Home Renovation Contract appeared first on J. Thompson Builders.

Scope of Work

The scope of work is a detailed outline of what the job entails. A renovation contract should include project descriptions along with the materials and quantities required, including product model, color, size and brand. And it’s helpful if the contract explains the timeline of when each part of the project should occur so you can ensure the workers are making the expected progress.

The Schedule

The renovation contract should set the estimated start and completion date. It’s not uncommon for delays to occur, some caused by the client or contractor, and some out of either’s control, but it’s important to have an end goal to strive towards and to try to get back on track whenever delays occur.

The Cost (i.e. the Bid) & Payment

The agreement should clearly state prices and be inclusive. Ask if there are any additional fees or costs not included in the contract such as clean-up fees or the cost for temporary power.
The agreement should outline the payment schedule for the contractor, subcontractors and suppliers, and it should include what payment methods are acceptable, and if installment payments are an option. The contract may also include late payment penalties; know what these are in advance.

Contractor Responsibilities

The contract should clearly state what the contractor will and won’t do, including site clean-up and hauling trash. It’s important to understand who will be responsbile for the site clean-up work. As well it should clearly state who is selecting materials if some materials are to be chosen later and are not included in the original scope of work.

Allowances

A renovation contract includes an estimate of the cost of materials. But because all costs can’t be completely accurately accounted for during the bidding process, the allowance acts as the budget for particular items, such as the kitchen cabinets. A contractor, through the contract, is allotted a certain budget in choosing such items so that the costs are still accounted for even through the total cost is not yet completely decided.

Agreement Changes

Renovation contracts should include a process for the contractor to follow if there are changes to the scope of work. A detailed contract should prevent a large amount of changes, but expect a few changes. Because changes are sometimes costly and time consuming, the agreement should clearly state how to handle such changes. (i.e. the homeowner must be notified and give consent first).

Warranties

The renovation contract should include information about any warranties which cover the material and work performed. It should include details of the names and contact information of who is covering the warranty, including contractors and manufacturers. The warranty period and any limitations should also be clearly explained.

Insurance

Because of the risks involved in construction, a renovation contract should contain information about insurance. If a contractor does not have adequate insurance, you may be held liable. Even if the contractor carries liability insurance (to cover harm caused by construction to non-workers and property), as well as worker’s compensation (to cover injury to workers), you may want to ensure you have builder’s risk or other renovation insurance to cover damage from fire, wind or theft.
Because a renovation contract, once accepted, becomes a legally binding contract, understand the terms and conditions completely before signing. This ensures both your and your contractor will face fewer issues during the renovation process.
Next Steps

J. Thompson Builders Blog

By Jeremy Thompson 01 Aug, 2017
Your home should work for you, your family and the way you live. Sometimes a new custom home isn’t the answer yet. When you need to maximize the space in your current home, find clever ways to make your space more usable by maximizing storage in unique ways. Platforms add additional space and a new […] The post Clever Remodeling Ideas to Maximize Storage Space appeared first on J. Thompson Builders.
By Jeremy Thompson 15 Jul, 2017
The internet puts an incredible amount of information at your fingertips. Why would you not take advantage of it to get home remodeling advice? Often it isn’t created by experts in the field. Here are 3 remodeling myths you may have read or heard about and the truth you need to know to understand how […] The post 3 Remodeling Myths and Tips appeared first on J. Thompson Builders.
By Jeremy Thompson 01 Jul, 2017
With more and more people working from home or taking at least the occasional “work from home” day, the home office has become an essential part of a home plan. Even if you don’t work from home ever, the home office is still a great area to work on creative projects, store important files, or […] The post Designing a Home Office: Increasing Productivity, Inspiring Creativity appeared first on J. Thompson Builders.
By Jeremy Thompson 15 Jun, 2017
We’ve offered you lots of advice over the years about building a custom home. Here is a condensed version of some of the most important tips to follow. Get on the fast track to planning your new custom home! 7 Tips for Building a Custom Home Pay attention to your subdivision covenants. Yes, these are […] The post Building a Custom Home: 7 Quick Tips appeared first on J. Thompson Builders.
By Jeremy Thompson 01 Jun, 2017
Whether building a house or undertaking a remodel you have the opportunity to design your house to suit your tastes and needs. There are many flooring options available, each with unique characteristics and design. Since flooring is a long-lasting part of the house it is important to choose the right floor for each room that […] The post 5 High-Quality Flooring Options Available for Your Home appeared first on J. Thompson Builders.
By Jeremy Thompson 15 May, 2017
Building a new home is an exciting time, filled with anticipation and satisfaction as you watch your vision come to life. However, it can also be a little overwhelming when you’re unfamiliar with some of the technical terms. To help remedy this we’ve defined a few of the custom home building terms you may hear […] The post 5 Key Terms to Understand in Custom Home Building appeared first on J. Thompson Builders.
By Jeremy Thompson 01 May, 2017
Whether you’ve just unpacked your first box or you’ve been living in your house for years, chances are there’s something about your home you’ve desired improving. However, before beginning a project there are a few key home remodeling terms you should become familiar with. Understanding these terms will help you navigate conversations with your remodeling […] The post 6 Key Home Remodeling Terms to Understand Before Beginning a Project appeared first on J. Thompson Builders.
By Jeremy Thompson 15 Apr, 2017
When it comes to home improvements, most of us are always looking for new, innovative ways to make changes to our homes. Whether you want to remodel your kitchen or just put shelves in your garage to store your tools, there are a wealth of home remodeling ideas to explore. Thankfully, there is a range […] The post 5 Home Remodeling Blogs That Will Inspire You appeared first on J. Thompson Builders.
By Jeremy Thompson 01 Apr, 2017
Few understand the custom home building process until they’ve experienced it themselves, and even those who have often don’t understand the aspects they haven’t experienced (e.g. if you haven’t built a custom home in a subdivision you may not understand how lot covenants work). Six key facts are important to understand when building a custom […] The post 6 Key Facts to Understand About Building a Custom Home appeared first on J. Thompson Builders.
By Jeremy Thompson 15 Mar, 2017
One of the more frustrating and confusing tasks when financing the building of your custom home or the remodel of an existing home is finding the right lender. Do you go with a broker, or a credit union, or a small hometown bank, or a large banking institution? How do you know they will give […] The post Home Building and Remodeling: Finding the Right Lender appeared first on J. Thompson Builders.
More Posts
Share by: