Model Remodeling Contract

This simplified model owner and contractor agreement covers the major areas of consideration for most major home improvement projects. While not every provision may be appropriate for all contracts, it does draw attention to the most important subjects relevant to contractual obligations. There may be additional terms or legal provisions that might be suggested by the homeowner, an attorney, or contractor which might be appropriate for the job under consideration. It is always wise to have your legal counsel review the contract if the job is large and/or unique.

Because the circumstances vary considerably from one job to another, we make no claims, express or implied, that this simplified owner and contractor agreement will protect all owners or all contractors against all possible circumstances, and expressly disclaim any liability therefor. It is also fair and in the best interest of the homeowner and the contractor that the description of work to be done be as thorough and specific as possible. Plans and/or materials lists and/or other relevant information should be referenced in the document and attached as an addendum.

Homeowners can avoid many problems by selecting a qualified contractor. While there are no guarantees, risks are reduced if the homeowner makes certain that the contractor has all required licenses in the state or locality, is covered by workers compensation, property, and personal liability insurance, and is bonded. Ask to see a copy of the insurance certificate or the name of the insurance carrier so you can verify the policy.

Check the local Better Business Bureau to make sure there is not a history of dissatisfied customers. Ask for current references. Best are those with jobs just completed or still underway. Since both subcontractors and employees change over time this gives a better measure of current capability and performance.

Ask if they are a member of the National Association of the Remodeling Industry, the National Association of Home Builders Remodelers Council, and/or any of the trade associations representing specific sectors of the remodeling industry. Most offer educational programs that keep members current on technology and management practices, and many have certification programs. Membership in these trade associations is one likely indicator of the contractor's commitment to the trade and to professionalism.

In most regions a down payment representing costs of materials and other early costs is expected. Beyond that homeowners should seek to break the job down into as many discrete components as is reasonable, and to keep the payments related to the costs of materials and labor for that component. Homeowners shouldn't get into a position where they've paid 90% of the total price and the job is only half done.

Remember, a major remodeling job is a complex undertaking bringing together thousands of parts and components, a variety of human skills, and a variety of uncontrollable variables (not the least of which is weather). Start early and allow plenty of time for unanticipated delays at each stage of the process. Unavoidable delays are not uncommon. Small glitches are likely under the best of circumstances. Keep your sense of humor.

Richard J. Roll, Founder and President of the American Homeowners Association (AHA) has helped over 1 million homeowners in all 50 states save money on buying and maintaining their homes. For more tools, information and resources to help you maintain your home and instantaneously save money go to http://www.ahahome.com for a special offer from AHA.