When asked, “Which comes first, the words or the music?” the lyricist Ira Gershwin replied, “What usually comes first is the contract.”
This holds true for contractors as well. A written contract is the best protection for not only the home owner but also the contractor. Any home project is subject to delays and problems and having a bond in place is the best way to make sure a meeting of minds has taken place between the consumer and service provider.
There are a few basic things a contractor should contain including the start date of the project as well as an estimated completion date. Contractors are at the mercy to a variety of things that can interfere with a completion date including the weather, delays in special orders arriving that are needed for the project or even the home owner changing aspects of the project. It is helpful to view a completion date with a two week plus or minus timeframe to have a realistic target date in place.
Other than a start and finish date, a contractual agreement should also include exactly what the job will involve. If the contractor plans to remove and replace the existing molding when he replaces the kitchen cabinets for example the contract should state this. Without it in writing there is no evidence that this was the planned arrangement and if either party forgets a small detail it can grow into a bigger problem later on down the road.
One of the most important features to have in any contract is the price and payment dates. Most contractors require a payment up front before the job starts that they use to buy materials and bank roll the job. How much varies but it is not unrealistic to expect to pay at least fifty percent of the final price up front. By the mid way point on bigger jobs another payment would be due and the final payment would be given once the job is complete. Most contractors have a crew that they need to pay and supplies to buy to get a job done so they are just as motivated as the home owner to make progress on a job and realize a profit.
Finally keep a copy of the contract since it may come in handy for tax purposes to write off some of your home improvement cost. It is also useful to have in case there is a written warranty on the workmanship that needs to be addressed down the road. If the contractor does offer a warranty on his work make sure to get that in writing as well so there are no misunderstandings. He can warranty his work but he can not warrant the materials but they may have a separate warranty from the manufacturer that your contractor will be aware of.
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