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The Components of a Home Improvement Contract

Home improvement contracts between the customer and the contractor ensure that everyone understands the expectations for the project. In addition, financial concerns such as payment schedules are laid out, and warranties are accounted for. Home improvement contracts are legally binding, so it’s important to review them very carefully before signing your name. Here are the components of a home improvement contract.

 

Basic Information

This includes the title “Home Improvement Contract” and the names and contact information for all parties involved. The contract should also specify how it will refer to parties throughout the document. For example, the contractor will be referred to as “contractor” and the customer as “owner” or “homeowner”. The contractors state license number should also be present.

Work Start and End Dates

Work start and end dates should be specified, but they’re usually approximate. The contract defines how long the homeowner can wait before taking legal action if these dates aren’t adhered to. It also defines situations where a contractor could legally miss the dates, such as flooding or other unforeseen natural disasters.

Project Details

The contract should describe the work being performed, what materials will be used, equipment to be used, and any special work or cleanup that the contractor will do.

Financial Details

It’s important that this section be very carefully delineated. The contract should include the total project price and a separate amount for additional costs that could accrue. The contract should stipulate that additional costs can’t exceed the amount given on the paper. The down payment should be stated, as well as the project payment schedule, which determines when the payments are due to the contractor. The contract should cover amount of time the homeowner is allotted to make the payment after the due date, and the rights of the contractor to cancel the contract if the homeowner is late with the payment.

Other Documents

Other documents relevant to the contract include a cancellation notice, which gives the homeowner the right to cancel the contract without penalty based on the laws of the state. Contractors can file a mechanic’s lien for against the homeowner’s property for unpaid fees. The contract should also cover any warranties given by the contractor, their limitations, and duration.

Signature

All parties must sign and date the contract for it to be considered a legally binding document.

 

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Source

http://homeguides.sfgate.com/write-home-improvement-contract-7802.html

This entry was posted on Monday, December 16th, 2013 at 7:13 pm . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.