How to Write a Contract With a Home Improvement Contractor

A home improvement contractor is a person or business that renovates homes. These projects include anything from painting to installing an entire bathroom or kitchen. While some home improvements can be completed by a do-it-yourselfer, hiring a professional will save time and may be less expensive in the long run. A homeowner should make a list of improvements they want to have done and find multiple contractors for quotes. A contract should be signed with the contractor to lock in prices and avoid costly surprises. A number of items should be included in the contract including a start date and a completion date, contingencies, and a specific description of work to be performed (including materials). The contract should also include product ID numbers and brands for any materials to be used.

Before hiring a contractor, homeowners should check with their state’s consumer protection department to see what laws apply to them. Then they should look up the contractor’s license and insurance coverage to ensure that they are legitimate and insured. They should also read online reviews to determine how others have found the contractor’s performance and professionalism.

Some scams that home improvement contractors engage in include the following: They claim to have construction materials “left over” from another job that they can use for a lower price on your project. They require a large down payment before starting the work. They try to pressure homeowners into signing over insurance claim payments (usually after a natural disaster). They tell you that you need to obtain any necessary building permits, when this is typically the responsibility of the contractor.

The contract should also set forth the parties’ expectations and responsibilities. This should include where trash and dirt will be deposited; where equipment is to be stored between workdays; the amount of parking available; and neighborhood noise levels or quiet times, if applicable. It should also state whether the contractor will be responsible for theft or damage to property features or neighboring homes. The contract should also specify the contractor’s warranty obligations and any exclusions to the warranties.

A final item to include is a statement that New Jersey law grants homeowners a three-day right of rescission on home improvement contracts and offers. This provision gives homeowners the opportunity to cancel a contract within three days of signing it without penalty, which should help prevent disputes later on.

A well-written home improvement contract is essential to preventing expensive disputes. It should include all of the above items, and if possible, should be written in plain English. It should be legible and include the names and addresses of both parties. A copy should be kept by each party for their records. If a dispute arises between the contractor and homeowner, the contract will serve as evidence of what was agreed upon by both parties. If a disagreement cannot be resolved, the matter should be submitted to arbitration. This option is free and confidential and is generally faster than going to court.