1. It should be written on company letterhead. Any established construction firm should have their own company letterhead. Preferably typed up rather than handwritten.
2. It should contain the company’s name, address and phone number. It is essential that the contract have the business name, physical address and phone number where the foreman can be reached.
3. It should contain the consumer’s name, address (where the work is to be performed) and phone number. Make sure your personal information is on the document as well. This will let all legal parties know that the contract involves YOU and the construction firm are involved.
4. It should be dated the day it is written. The document should be dated on the day it was drawn up an signed.
5. It should include a detailed description of the work that is to be performed. This is the most vital part of the construction contract make sure every little item that you discussed with the contractor is in writing. Even down to who will install the door knobs..get it in writing.
6. It should provide a dollar amount associated with each task included in the project.
An amount of hours or price should be attached to each individual task associated with the project, this will allow you, if need be, to budget the project accordingly.
7. It should include an estimated time line. A time line, very important. Signing a contract without a timeline could mean that you project is put on hold while higher paying projects are complete first.
8. It should provide a paymend schedule. An established pay schedule is necessary to keep the project moving along. No one wants surprises.
9. It should clearly state whether permits will be pulled and who will be responsible for pulling them. If this is your first time building a home, camp or cottage, better to have your contractor take over which permits need to be pulled for the project. They are more familiar with the processes and may have some pull especially if they are well known around town.
10. Make sure there is a provision for all changes to the original contract to be in writing, and signed by both parties. Changes happen, design changes, material changes, just make sure that there are provisions in the contract which protect you against those changes.
Top 10 Courtesy of Schiavi Homes
Commentary Courtesy of Modularhouse.wordpress.com
