As a homeowner, you know that home improvements can increase the usability and enjoyment of your home, often with the benefit of increasing your property value .
Some minor improvements are inexpensive and suitable for DIYers, even beginners: painting a room or adding a decorative element like a kitchen backsplash, for example.
For bigger projects, though—or if your idea of DIY is driving to the pizza place rather than springing for delivery—you’ll want to pay for the services of an expert.
If you’re only changing one element of your home, you may work directly with a specialist in a particular area. For instance, you might hire a flooring company to replace your carpet with hardwood.
But if you’re remodeling a whole room or building an addition, you’ll likely be working with a general contractor . The one you choose will be the lead on your project and will coordinate with other specialists to get the job done.
Here are a few things you should be aware of before signing a home improvement contract.
What is a home improvement contract?
The home improvement contract is a legally binding document that is signed by you (the homeowner) and the contractor. It should contain all relevant agreements between the parties. On a basic level, it provides a roadmap for what you can expect from your contractor and what they, in turn, can expect from you.
If all goes well, the contract will be filed away once the work is completed and you won’t need to look at it again. But if there are problems or disagreements, the contract represents the rulebook for the project. If any disputes cannot be worked out between you and your contractor, either side may use the contract when bringing a lawsuit.
A well-written contract can prevent the need to take legal action.
Following are some standard sections that should be included in most home improvement contracts:
Table of Contents:
Because it’s a legal document, the contract must specify who is making this agreement. That means it will include your name and contact information as the homeowner as well as the contractor’s, along with the address where the work will be completed.
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The heart and soul of a home improvement contract is the Scope of Work section. Here the contract will outline exactly what is included in the project.
Sometimes the Scope of Work (sometimes referred to as the SOW) will be a separate document attached to the end of the contract as an exhibit.
Some of the items specified in the Scope of Work include which products will be used (including design choices like color and size), who will perform what work (including subcontractors hired by the contractor for particular parts of the job), material quantities and any identifiers for the specific products and appliances, such as the manufacturer’s model number.
If there is anything you expect to have done that is not in the Scope of Work, ask your contractor to add it. This is not the place to fall back on “I trust them” or “I’m sure we can work it out.”
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Once you sign the contract, any changes to the plan must be documented and agreed to by both parties. Your contract should explain the process for Change Orders, which are add-ons to the contract at a later date.
Even small changes must be documented; if you want to change the color of the trim from beige to ecru, for example. This protects both parties if any disagreements come up later.
