How to Make a Renovation Contract?
A renovation contract is a written legal document that spells out the terms of agreement of a homeowner and a contractor. Whether you are planning to have a basement renovation, bathroom renovation, or kitchen renovation, it is vital to have a contract on hand.
Many people choose to renovate their homes for various reasons such as fixing a safety issue, upgrading the home's function, updating the home's style, increase the efficiency of their personal space, increase the comfort and enjoyment, and preparing the property for sale. Spending on home renovations and repairs are expected to stay strong over the coming quarters. Anyone can do minor changes to their home; however, if it is a big renovation project, then you will need contractors. Having a legally binding document, like renovation or remodeling contract, in this kind of transaction is vital. Whether you are a renovation contractor or a homeowner, it is important to learn how to write a contract. Here are some guidelines that might help you in making your own renovation contract.
The renovation contract should start with a sample contract statement that specifies the exact date of the contract's effectivity and the parties involved in the transaction. Before you start with the "WHEREAS" statements, make sure to specify the information of the contractor and the client such as the name of the client, contractor's company, complete address, contact numbers, and the email address of both parties.
2. Include the Scope of Work
This is the part of the contract agreement where you describe the general work to be performed by the contractor. You can make a list that shows the complete areas of your property that you want to be repaired and renovated. You can also specify in this part that the contractor can perform all the services that may be indirectly related to the renovation of the premises, which you will appropriately compensate.
3. Terms and Condition
Terms and conditions are always present in all contracts, since they identify the rights and responsibilities of both parties. Whether you're making a home renovation contract, building renovation contract, or renovation construction contract, always make sure that the terms and conditions of your performance contract are not one-sided; therefore, it should benefit the client and the contractor.
4. Third-Party Service Providers
This is the part of the service contract where the contractor is allowed to select and commission subcontractors, suppliers, and employee contracts. The contractor shall enter another contract signing with the aforementioned third party service provider and he has all the right to supervise them.
5. Always Ask for Legal Advice
No matter how small the scope of the contract is, it is still a legally binding document. To have a better and stronger contract, you must consult an attorney to review your contract.
The last part of your simple contract should be an area for both parties to sign and date the contract. However, prior to the aforementioned part should be a provision stating that both parties agreed to be bound by the terms of the contract.