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Home Improvement Contracts - Do You Know What You're Signing?

Fri 13 Nov 2009 - 15:09

Home Improvement Contracts - Do You Know What You're Signing?
By [http://ezinearticles.com/?expert=Edward_Winslow]Edward Winslow

Contracts are all about money. In today's litigious world if you're planning any kind of renovation work you better have comprehensive home improvement contracts. The same goes for the contractor you better have a contract that is legal and protects you too. You also need to understand how to write a contract because the contract is a part of you every step of the project even after the job is done and you are paid.

Every project starts out the same. The client is excited about their new renovation and the contractor is excited too have the job. I think it's a period of fantasy. There are certain expectations (or fantasys) on behalf of both parties.

The contractor thinks "this is a great client, great project with lots of profit". The client thinks "I'm lucky to have found this contractor, he's the best and his price is great, all those stories my friends have told me, well it's not happening to me, I'm smarter than them."

Anyway the contractor gets the residential construction contracts signed and deposits the deposit right away. He's thinking,"i can't wait to get started". This could be mistake number one. In some states there is a 3 day rescission period. The contractor has violated contract law if he deposits the check before the 3 day period. (every state is different) When time for final payment if the client doesn't pay and it goes to court the Judge could throw case out. Sorry Mr. Contractor you breached the contract, tough luck you deposited the first check to soon.

It can work both ways. Lets say the contract stipulates that the client must provide water, heat and light. Contractor shows up to get to work on a flooring job. He brings 3 guys and materials. Guess what? The plumber turned off the water, had to run out to get a part, stops for coffee, another client calls, needs him for a minute which turns into 3 hours. So what is flooring guy supposed to do? Eat the expense of waiting around, delaying the job a day, jeopardizing another job because of the plumber?

If it's in the contract, the flooring guy isn't going to eat it. Either the owner or GC will have to shell out some extra money. The flooring guy better have a change order ready to sign. If you have a solid contract with the plumber he'll have to eat it, if you don't you know who is losing. That could be a $1,000.00 issue, maybe more.

Now the fantasy is turning into reality. Happy homeowner is now upset and contractor/s are in a pretty foul mood too. The winner is the one with the best contract. The floor guy could walk off the job with the owners money unless problem is settled right then and there. Take the flooring guy to court, good luck, you breached the contract. No water.

Variations of this scenario happen every day. Contracts are overlooked and just signed. In the beginning everyone is well intentioned. The contractor wants to get paid for his service. When Mr. Contractor starts working for free his enthusiasm plummets. Frequently what Mr. Contractor sees as free work the client expects as part of the service. Unless discussed and agreed to in writing up front there will be problems. Everyone has a different perception of what's fair.

It all comes down to the contract. And what is a contract? A service for a fee. Both parties need to have a firm understanding of the contract or it will cost someone. It's also critical to understand the law in your state. Before entering into any contracts make sure you know what you're signing. That goes for both parties.

A critical part to a contractors business should be having a legal advisor and knowing the laws that pertain to the business. Too bad for you if you don't. If you are the client it's advisable to have an attorney review the contract before signing. Shame on you if you don't know what you're signing.

Edward Winslow http://blog.themetropro.com

Blog http://www.metrocrete.com

Concrete Resurfacing Made Simple - Concrete resurfacing products and solutions

Article Source: http://EzineArticles.com/?expert=Edward_Winslow http://EzineArticles.com/?Home-Improvement-Contracts---Do-You-Know-What-Youre-Signing?&id=1041407


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