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What A Contract Should Include
- Contractors' name, address, and license number. The approximate
date the work is to begin and when the work will be substantially
completed.
- Clear financial terms including the total price and when payments
are due. Include retention clause (usually 10% withheld until
final completion), cancellation penalty, and a clearly stated
down payment requirement (may be $1,000 or 10% of the contract
total, whichever is less) (except for construction of swimming
pools).
- Description of the work to be done including specifications
as applicable regarding the quality, quantity, weight, color,
size, brand name, etc. of materials to be used.
- Instructions regarding clean up, removal, and disposal of debris
and unused materials. Instructions regarding where materials may
and may not be stored, and special considerations regarding children
and pets.
- All changes to the original contract are to be in writing, on
change orders that specify details as noted for the original contract.
Change orders should be signed, dated, and retained by both parties.
- Cancellation period of 3 business days. Cancellation should
be in writing, and sent via registered mail to the contractor
to create a formal and dated record.
- All warranties for labor and materials offered by the contractor
shall be provided to the property owner in writing. They should
specify what is and is not covered, and for what duration. Written
manufacturers warranties, too, should be provided to the property
owner.
- All work to be performed shall be in compliance with applicable
building codes and city requirements. Contractor will obtain all
necessary building, zoning, electrical, heating, plumbing, or
otherwise required permits. Contractor is responsible for arranging
all required inspections. (Property owner should be present at
all inspections).
- Homeowner should have copies of all signed contracts, plans
and specifications for the project, including all changes, in
writing. Permits, plans, and specifications should be posted at
the work site.
- Problems, questions, and complaints should be in writing to
the contractor.
- The contract should include a Notice to Owner regarding state
lien laws, including property owner's rights and responsibilities.
(Property owners should receive lien releases from subcontractors
and material suppliers).
- A notice, that failure of the contractor, without lawful excuse,
to substantially commence work within 20 days of approximated
start date, constitutes a violation of the Contractor's License
Law.
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