A remodeling contract is a key document in the renovation process, providing necessary boundaries and establishing accountability for all parties. By covering important details such as project scope, timelines, costs, materials and warranties, the contract helps minimize misunderstandings and disputes. The contract also sets realistic expectations for both the homeowner and remodeler, preventing both parties from getting overly ambitious or extending the job beyond the original timeline.
Scope of Work
A thorough remodeling contract should include a detailed description of all the work to be done, including 3D mockups or property layouts and images. It should also specify how much each element of the job will cost, and whether it is a fixed-price or a cost-plus contract. Fixed-price contracts allow homeowners to see exactly where their money is going, while cost-plus contracts don’t.
Workdays
The scope of work should lay out what hours the remodeler will be working each day, and how long they will be at the jobsite. It should also stipulate that they will clean the work area at the end of each day, and ensure that all appliances or household facilities are working correctly (and if not, that they be left in their functional state). It may be worth including a statement that loud or disruptive work can only take place during certain hours, to prevent damage to neighbors’ homes.
Materials and Labor Costs
A detailed itemized list of all the remodeling materials that are needed to complete a job, as well as their estimated prices, is typically included in a renovation contract. This includes not only standard items like drywall and paint, but also higher-end finishes, furniture, cabinets and appliances. The list should also feature costs for labor, which will be billed either on an hourly basis or as a flat rate for the entire project.
Warranty
A standard remodeling contract should include a warranty that guarantees the contractor’s workmanship will be free of defects for a specified period, and that any repairs or other work to correct flaws will be performed for free. Many contractors offer one- or two-year warranties, but it is worth seeking out a longer warranty period than these, to protect yourself from unexpected issues.
Changes
No matter how much planning clients do upfront, unforeseen circumstances can still arise during the renovation. This is why it is a good idea to include a clause in your remodeling contract that allows you both to amend the contract and the scope of work to reflect any changes in plans. It is also a good idea to include a procedure for handling change orders, to ensure that both parties are on the same page regarding what will be done and how much it will cost.