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Remember that an "oral agreement" is not worth much when things go wrong.
Although any contract can become unenforceable, a written one is the best kind to have.
Remember that anything you sign could be used by a contractor as authorization to go
forward with your project. This means that any bid you sign may become the contract. Do
not sign anything until you completely understand what you are signing and agree to all
the terms.
Never sign a blank or partially blank contract. Get a copy of the contract as soon as
you sign it, and keep it for your records.
Be sure your contract contains the following:
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The contractors name, street address, phone number and license number.
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Start and completion dates. Although these should allow for reasonable delays, a clause
allowing you to withhold payment if work slows down for no apparent reason is beneficial.
If time is important, you could consider negotiating a completion date with a penalty for
every day late, and a bonus if the job is finished early.
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A detailed description of the work to be done, a description of the materials and
equipment to be used (brand names, colors, size, styles and model numbers), and a list of
all costs spelled out clearly.
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A schedule of payments showing the amount of each payment in dollars and cents and the
stage of completion at which each payment becomes due.
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If you want a warranty, make sure it is in writing as part of the contract. Good
contractors always guarantee their work. Also, require the contractor to furnish you any
written warranties offered by the manufacturers of materials or appliances that are to be
installed.
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A guarantee that the contractor carries liability insurance and has workers compensation
coverage, in case of accidents on the job.
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For a large remodeling job that involves many subcontractors and a substantial financial
commitment, it is a good idea to specify in the contract that the contractor is
responsible for obtaining lien releases from each of the subcontractors and material
suppliers.
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Everything you feel is important to the job, including complete cleanup and removal of
debris and materials and special requests for saving certain materials or appliances.
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A statement that the contractor will obtain all required building permits (see
Permits/Inspections), and that all work will be done in accordance with all applicable
building codes and inspected before final payment.
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A statement that all changes (added work, substitution of materials, etc.) made after
the contract is signed will be written, clearly worded, and signed.
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