Most people dislike
contracts, documentation, paperwork and trying to anticipate things that can
go wrong. Nevertheless, these are critical at the beginning of a project.
Contracts define what "might" happen and how we will respond under those
circumstances. It's important to decide these things objectively, up
front, so we all have a clear agreement to guide us.
Always get agreements in
writing! A thorough contract protects you and
your builder. It details your relationship with us,
your expectations, and your relationships with the project itself. No matter how
large or how small the job, a reputable building professional will always
provide you with a written contract to jointly execute before starting work on the project.
In addition to the written
contract, make sure that the specifications and a dated set of plans are
included as part of the contract. It's also a good idea to attach the pre-construction
meeting notes to the file.
Detail the work to be done Be as specific as possible
when specifying the builder’s scope of work. Communicate the details about the location
of the work, the type of materials to be used, and the methods of application. Here are some examples of
the many ways a job task can be described.
Bad: “Kitchen cabinets.”
Better: “Install
kitchen cabinets.”
Best: “Custom-built stained
maple cabinets with arched door panels and polished brass door hardware.”
Also
note the major milestone tasks for the project. (It may be necessary to stagger
the work of one contractor based upon the completion of other contractors’ milestones. Before signing the contract, ask each contractor if this
is necessary.)
Detail the work NOT to be
done
Clearly specify work that
is not included in the contract. For example, “Work not
included in this contract: kitchen flooring.” Or, “Homeowner will be responsible for
kitchen flooring and installation.” With a large project, it's easy to
"assume", in error, that the builder has responsibility for everything. So it's
important to be specific and detailed.
Discuss the procedure for
changes
One of the primary "constants" of life is change. The need for changes
on project can occur at any time, for many reasons. How you handle changes and change orders (the
builder’s documentation) needs to be
spelled out explicitly in the contract terms.
You can agree that your verbal
authorization is all that's needed to execute a project change. But make sure that
the verbal authorization is always followed up with a written, signed change order
authorization. And decide who, specifically, is authorized to initiate a change.
This protects everyone.
If there’s something you
don’t understand, ask questions! Your contract is an
important component of your building/remodeling project. We want to
make sure that you are ready to go forward, and that you understand what’s going
to be done. We also want to make sure that you’ll be completely happy
with your project and that it meets your expectations.
Don’t be afraid to ask for
clarification if a term or an item is confusing. We would much rather
spend some time explaining a detail up front, rather than spend hours later trying to
smooth out a misunderstanding that leads to disagreement.
Include the payment terms
of the project The terms of payment for
your project should also be included clearly in the contract. Payment schedules
are usually scheduled to coincide with important project milestones. For example, a
down payment will typically be required at the outset of a project (to purchase
starting materials) with progress
payments occurring as each milestone is reached. The contract
should specify what amount of payment is expected, and at what stage. It should
also include what
documentation is required from the builder initiate the payment.
You can use this payment schedule to manage
your own finances as well. If you’ll need to free up some assets in order to
make a progress payment, ask your builder where each progress point lies in the
schedule so that you can plan accordingly.
When everything is put in writing at the beginning of the project, it
protects you and it protect us. More importantly, it allows the
project to progress more smoothly and quickly since key decision points are
well-defined and agreed upon in advance.