The Legal Contract. – 10 Key Points to have on your renovation contract
1. Is your contract FIXED PRICE or COST PLUS (A “Fixed-Price” contract is where the amount agreed to, does not vary depending on the resources or time expended to complete the task, where as a “Cost Plus” contract is intended to ensure that any unforeseen costs or overruns do not derail the project entirely)
2. The contractor’s name, address, license number, the approximate start and completion date and specific and detailed descriptions of the scope of work to be completed.
3. Your contract’s payment terms should be clearly outlined including the total price, payment schedule and a retention clause. Down payments are generally 10- 30% of the total with three to five consecutive scheduled payments.
4. Make sure to have clear instructions regarding the clean up, removal and disposal of debris. All responsibilities of items such as dumpsters and portable toilets should be clearly spelled out are to be on your property, it should be clear whose responsibility it is to empty and properly maintain them. Likewise storage of any materials and equipment while the renovation is underway.
5. Warranties for all labor and materials should be in writing, clearly stating what’s covered and the duration as well as manufacturers’ warranties.
6. All work should adhere to city, municipality building requirements. The contractor will provide necessary permits, arranging the required inspections.
7. Questions and Concerns are to be in writing to the contractor. (mostly electronic with new project management software and tools)
8. All contract changes and change orders are to be in writing with the date and signatures of both the contractor and property owner.
9. A termination clause which stating the reasons the homeowner or contractor can leave the property without penalty (e.g.the homeowner doesn’t make payments, there are unnecessary delays, poor workmanship).
10. Any potential violations by either party should be clearly defined including failure of the contractor to begin or complete the project as agreed upon in the contract.
Marcraft Homes is a luxury custom home builder, building and renovating quality residential homes in Metro Vancouver since 2003. Are you thinking of a major home renovation in Metro Vancouver? Call or email Erynn today and ask for the Marcraft Welcome Kit, our free information gathering tool you can use and share with the Marcraft team to help plan and organize your next home renovation project.
2. The contractor’s name, address, license number, the approximate start and completion date and specific and detailed descriptions of the scope of work to be completed.
3. Your contract’s payment terms should be clearly outlined including the total price, payment schedule and a retention clause. Down payments are generally 10- 30% of the total with three to five consecutive scheduled payments.
4. Make sure to have clear instructions regarding the clean up, removal and disposal of debris. All responsibilities of items such as dumpsters and portable toilets should be clearly spelled out are to be on your property, it should be clear whose responsibility it is to empty and properly maintain them. Likewise storage of any materials and equipment while the renovation is underway.
5. Warranties for all labor and materials should be in writing, clearly stating what’s covered and the duration as well as manufacturers’ warranties.
6. All work should adhere to city, municipality building requirements. The contractor will provide necessary permits, arranging the required inspections.
7. Questions and Concerns are to be in writing to the contractor. (mostly electronic with new project management software and tools)
8. All contract changes and change orders are to be in writing with the date and signatures of both the contractor and property owner.
9. A termination clause which stating the reasons the homeowner or contractor can leave the property without penalty (e.g.the homeowner doesn’t make payments, there are unnecessary delays, poor workmanship).
10. Any potential violations by either party should be clearly defined including failure of the contractor to begin or complete the project as agreed upon in the contract.
Marcraft Homes is a luxury custom home builder, building and renovating quality residential homes in Metro Vancouver since 2003. Are you thinking of a major home renovation in Metro Vancouver? Call or email Erynn today and ask for the Marcraft Welcome Kit, our free information gathering tool you can use and share with the Marcraft team to help plan and organize your next home renovation project.
RSS Feed
