Home Improvement Contract Tips

by Alastair Lydeard

It’s time to bring your dream home to life. You’ve hired a contractor to take care of those renovations you’ve been wishing for. Before the hammer starts swinging, make sure you’ve got a firm home improvement contract in place.

It seems that everyone is thinking about home improvements. Some jobs are relatively small, like a little landscaping or a new kitchen floor. Others, like swimming pool installations, are more extravagant. Large or small, if your job requires the services of a hired professional, then you need to have a home improvement contract.

So, what should you know before signing the dotted line?

Compare Contractors

Don’t be too quick to sign a contract with the first home improvement professional you meet. Speak with people you know and trust, and ask for referrals. Compile a list of contractor names along with their professional license numbers. This information is essential for performing background checks through services like the Better Business Bureau and local state or provincial Consumer Affairs’ business licensing divisions.

Be sure that the names match the numbers, and check for any complaints that may have been filed against the contractors. You need to be as thorough as you would when checking references for a potential employee.

List Your Terms

You’ve done all of your background checks and chosen your contractor. Now, it’s time to negotiate and sign your home improvement contract. There is a list of concise information that you should look for in your written home improvement contract.

First of all, look for the full information of the building contractor or company, including the professional license number. Make sure that your home improvement contract includes every detail of the project, including start and completion dates. All financial details like material costs, labor fees and payment arrangements must also be clearly disclosed.

One of the most important points to cover on your contract is a ‘right to cancel’ agreement that gives you the opportunity to change your mind about the contract that you have signed. This clause will generally allow three days’ grace, during which time you are free to cancel. Make sure that the contract also protects you in the event that an unforeseen circumstance occurs after the project is underway.

Be sure to list the small items on your contract as well. Don’t overlook the simple fact that contractors working on your property will need to use certain facilities. If you’re not comfortable with them using your washroom and telephone, spell it out in your contract. The building contractor will need time to make alternate arrangements.

Cover Your Assets

Keep a copy of the home improvement contract that’s been signed by you and the contractor. This document must be filed in a safe place after the project has been completed. Be sure that any guarantees are clearly shown on the contract to provide legal backing if there is a problem with the materials or workmanship. You shouldn’t pay more than the minimum guaranteed down payment or pay the remainder of the agreed price until the project has been completely finished and all of the debris has been cleared away.

You have a responsibility to protect your property and your own best interests. Never sign a home improvement contract if it is not completely filled in. Take the time to read the contract in its entirety. If any of the terms confuse you, don’t be afraid to ask questions. After all, your home is your castle, and a home improvement contract should offer all the protection you need.

About the Author:

Contributor Alastair Lydeard is a columnist for a variety of popular Internet magazines, on home repair and American family themes. You can get a unique content version of this article.