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Up Protecting Yourself and Your Home

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.

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Randolph Goers Inc. 5317 Lebanon Road Charlotte, NC 28227  Tel: 704-573-1102   Fax: 704-545-1748  

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Last modified: 09/19/07