Dealing With The Contract For Construction
So you've got your drawings and design, your permits in hand, a pile of money lined up, your Contractor(s) reviewed and selected, and a gleam in your eye. Well, hang on! The most important step is yet to come before one nail hits the job. Now you have to decide how well you are going to REALLY limit your risk...
The first concept to get your head firmly wrapped around is this:
If you didn't get it in writing, it NEVER HAPPENED. Period.
This is so important, I can't stress the concept enough. I don't care if it's your brother's buddy or your Uncle John- a construction project where money changes hands in return for work is a Business Arrangement, and should be dealt with accordingly. If not, you can leave yourself open to a huge risk of loss, both financially and spiritually! No reputable contractor will have any problem whatsoever with preparing and executing a written agreement on a project- no matter WHO they are to you personally; In fact, they will admire and respect your intelligence and responsibility. You see, a properly drafted contract protects them as much as it does you...
The actual Contract need not be elaborate, but there are certain sections that are vital. The first is the names of the parties or entities executing the agreement, the date the agreement is being entered into, and the legal description of the property being improved. If it is an established structure with a postal address, that full address is usually sufficient. If raw land or an unimproved lot, you will need to list the survey information which includes: the County, Township, Section, and Range, among other details. You can get this information from the title or deed, or from your local County or Township Government offices.
Second, you should clearly list the entire scope of work. If you are acting as the General Contractor, you will need to prepare a separate contract for each Sub-Contractor. If you don't have drawings and specifications for the project, you will want to list exactly what you are expecting to be done: for example, remove and dispose of existing kitchen countertops; Provide and install new countertops and 4" back splash as manufactured by [insert vendor], style [insert style and type], color [insert color]. You don't need to list every screw and nail, however the "standard of work" statement "All work shall be performed in a competent, workmanlike fashion, following accepted industry trade practices" should be included. This allows you to have an impartial third party expert inspect the work and give an opinion as to the suitability of the work in case of a dispute or before making final payment (see chapter on close out).
The first concept to get your head firmly wrapped around is this:
If you didn't get it in writing, it NEVER HAPPENED. Period.
This is so important, I can't stress the concept enough. I don't care if it's your brother's buddy or your Uncle John- a construction project where money changes hands in return for work is a Business Arrangement, and should be dealt with accordingly. If not, you can leave yourself open to a huge risk of loss, both financially and spiritually! No reputable contractor will have any problem whatsoever with preparing and executing a written agreement on a project- no matter WHO they are to you personally; In fact, they will admire and respect your intelligence and responsibility. You see, a properly drafted contract protects them as much as it does you...
The actual Contract need not be elaborate, but there are certain sections that are vital. The first is the names of the parties or entities executing the agreement, the date the agreement is being entered into, and the legal description of the property being improved. If it is an established structure with a postal address, that full address is usually sufficient. If raw land or an unimproved lot, you will need to list the survey information which includes: the County, Township, Section, and Range, among other details. You can get this information from the title or deed, or from your local County or Township Government offices.
Second, you should clearly list the entire scope of work. If you are acting as the General Contractor, you will need to prepare a separate contract for each Sub-Contractor. If you don't have drawings and specifications for the project, you will want to list exactly what you are expecting to be done: for example, remove and dispose of existing kitchen countertops; Provide and install new countertops and 4" back splash as manufactured by [insert vendor], style [insert style and type], color [insert color]. You don't need to list every screw and nail, however the "standard of work" statement "All work shall be performed in a competent, workmanlike fashion, following accepted industry trade practices" should be included. This allows you to have an impartial third party expert inspect the work and give an opinion as to the suitability of the work in case of a dispute or before making final payment (see chapter on close out).
So you've got your drawings and design, your permits in hand, a pile of money lined up, your Contractor(s) reviewed and selected, and a gleam in your eye. Well, hang on! The most important step is yet to come before one nail hits the job. Now you have to decide how well you are going to REALLY limit your risk...
The first concept to get your head firmly wrapped around is this:
If you didn't get it in writing, it NEVER HAPPENED. Period.
This is so important, I can't stress the concept enough. I don't care if it's your brother's buddy or your Uncle John- a construction project where money changes hands in return for work is a Business Arrangement, and should be dealt with accordingly. If not, you can leave yourself open to a huge risk of loss, both financially and spiritually! No reputable contractor will have any problem whatsoever with preparing and executing a written agreement on a project- no matter WHO they are to you personally; In fact, they will admire and respect your intelligence and responsibility. You see, a properly drafted contract protects them as much as it does you...
The actual Contract need not be elaborate, but there are certain sections that are vital. The first is the names of the parties or entities executing the agreement, the date the agreement is being entered into, and the legal description of the property being improved. If it is an established structure with a postal address, that full address is usually sufficient. If raw land or an unimproved lot, you will need to list the survey information which includes: the County, Township, Section, and Range, among other details. You can get this information from the title or deed, or from your local County or Township Government offices.
Second, you should clearly list the entire scope of work. If you are acting as the General Contractor, you will need to prepare a separate contract for each Sub-Contractor. If you don't have drawings and specifications for the project, you will want to list exactly what you are expecting to be done: for example, remove and dispose of existing kitchen countertops; Provide and install new countertops and 4" back splash as manufactured by [insert vendor], style [insert style and type], color [insert color]. You don't need to list every screw and nail, however the "standard of work" statement "All work shall be performed in a competent, workmanlike fashion, following accepted industry trade practices" should be included. This allows you to have an impartial third party expert inspect the work and give an opinion as to the suitability of the work in case of a dispute or before making final payment (see chapter on close out).
The first concept to get your head firmly wrapped around is this:
If you didn't get it in writing, it NEVER HAPPENED. Period.
This is so important, I can't stress the concept enough. I don't care if it's your brother's buddy or your Uncle John- a construction project where money changes hands in return for work is a Business Arrangement, and should be dealt with accordingly. If not, you can leave yourself open to a huge risk of loss, both financially and spiritually! No reputable contractor will have any problem whatsoever with preparing and executing a written agreement on a project- no matter WHO they are to you personally; In fact, they will admire and respect your intelligence and responsibility. You see, a properly drafted contract protects them as much as it does you...
The actual Contract need not be elaborate, but there are certain sections that are vital. The first is the names of the parties or entities executing the agreement, the date the agreement is being entered into, and the legal description of the property being improved. If it is an established structure with a postal address, that full address is usually sufficient. If raw land or an unimproved lot, you will need to list the survey information which includes: the County, Township, Section, and Range, among other details. You can get this information from the title or deed, or from your local County or Township Government offices.
Second, you should clearly list the entire scope of work. If you are acting as the General Contractor, you will need to prepare a separate contract for each Sub-Contractor. If you don't have drawings and specifications for the project, you will want to list exactly what you are expecting to be done: for example, remove and dispose of existing kitchen countertops; Provide and install new countertops and 4" back splash as manufactured by [insert vendor], style [insert style and type], color [insert color]. You don't need to list every screw and nail, however the "standard of work" statement "All work shall be performed in a competent, workmanlike fashion, following accepted industry trade practices" should be included. This allows you to have an impartial third party expert inspect the work and give an opinion as to the suitability of the work in case of a dispute or before making final payment (see chapter on close out).
posted by zzzzzzzzzzz at
8:21 PM
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