How to Write a Home Improvement Contract

Step-by-Step Guide

1. 1

   Step 1: Define what you want to do.

   You can't write a good contract unless you can define exactly what you want to accomplish.
   
   Whether it's a major project like an internal remodel that includes adding rooms or rearranging walls, a new bathroom, or merely adding lighting, you must have a firm grasp on all aspects of the project.
   
   Make sketches or print out photos that closely match what you would like to do.
   
   This can help you when selecting a contractor and writing the contract.
2. 2

   Step 2: Formulate your budget.

   Whether this is a small project you are paying in a lump sum or a larger project with a payment plan, you need to know both your projected budget and your maximum budget.You should assume that your project will run up to 25 percent over the estimate and build that into your budget.
   
   Using an online estimator can give you a ballpark cost for your area.
   
   Use one that is keyed to your city or zip code., Depending on your area, you will have many different contractors and craftsmen to choose from.
   
   You don't want too many estimates, or it will be exhausting and confusing.
   
   Unless you have a specific contractor you want to work with, a good rule is to get at least three estimates.Ask friends, family, and co-workers if they can recommend a contractor.
   
   If you can, check out their finished projects.
   
   Ask if the project was finished on time and how well the contractor stuck to the budget.
   
   Go online and enter the contractor's name followed by "review"
   
   "complaint"
   
   or "scam." One or two complaints shouldn't disqualify a contractor, but a large number or a constant theme should be a warning sign.
   
   Check the Better Business Bureau for complaints against the contractor.Your local building department may have a blacklist of contractors that have consistently violated building codes and permits. , Depending on the scope of the project, ask a contractor about his licensing and insurance.
   
   You should get a direct answer of yes and how much.
   
   Reference the contractor's insurance policy number in the contract.
   
   The contract should specify how insurance for subcontractors will be handled.
   
   The contractor can cover them under his policy or provide insurance information for the individual subs. , This is where your conceptional sketches and photos can come in handy.
   
   While he is at your house, discuss the project thoroughly and ask the contractor for his opinion and input.
   
   Odds are he has done similar projects and has gained insight into what does and doesn't work.
   
   He also may be able to offer suggestions on how to stretch your remodel budget.
   
   Be prepared to give the contractor full access to your house.
   
   For example, if you are doing major work in the kitchen, he might want to look in your attic or under the house.
   
   Make sure all the access hatches are doors are clear.
   
   Secure your pets in an area well away from the proposed remodel zone.
   
   Get a deadline for the estimate.
   
   If the contractor can't meet a reasonable date now, that is a red flag for the timeliness of future work. , The biggest red flag is a contractor or contractor salesperson that pressures you to sign a contract immediately without a chance to thoroughly review the estimate.
   
   Another problem is poorly defined scopes of work, such as, "upgrade electrical." Finally, be wary of contact from unsolicited contractors, either through phone calls or salesmen showing up uninvited at your house.
   
   Use your common sense and don't commit to anything until you have had time to review the estimate, finish your research, and feel comfortable with the contractor. , If you were clear about what you want, the estimates should all come in with the same scope of work, but with differing prices.
   
   Don't immediately jump at the cheapest bid, as it may cut corners or leave out parts of what you need.
   
   Don't be afraid to ask the contractor to clarify anything you don't understand.
   
   The estimate should include specifics such as type of lumber, choice of paint, and whether you or the contractor will supply new appliances or fixtures.
   
   It should also include if the contractor will be using any sub-contractors.
3. 3

   Step 3: Narrow down your contractor list.

4. 4

   Step 4: Ask about licensing and insurance.

5. 5

   Step 5: Solicit at least three estimates.

6. 6

   Step 6: Watch out for warning signs.

7. 7

   Step 7: Compare the estimates and choose a contractor.

Detailed Guide

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