Contractor Contract

Once you have chosen a contractor, the next step is to negotiate the contract. A Contractor Contract should have the following items that are addressed.

1. Itemize all of the work details- Specify the type/ brand/ materials/ and finishes that will be used.

2. Timeline- Make sure that you specify a specific timetable that needs to be adhered to. You can even work in penalties for missing deadlines.

3. Fixed price vs. Cost plus- A fixed price contract states the total cost of the job, whereas a cost-plus contract specifies the cost of labor and materials.

4. Include a voidable timeframe- Give yourself the ability to back-out or rescind the contract within 72-hours of signing it.

5. Insurance- Ensure that the contract details the contractor’s insurance.

6. Warranty- Make sure that labor and materials are free from defects for at least 1-year.

7. Arbitration Clause- This delineates the method for resolving disputes.

8. Release of Liens Clause- This will ensure that you won’t be responsible for liens filed against the contractor by suppliers or subcontractors.

When you select your contractor, make sure that you have addressed the above items in the contractor contract.