Homeowners seeking bids on their home repair projects often wonder what they should look for in a contract. Before you sign on the dotted line, HRRC recommends that you make sure your contract contains at least the following information:

1.  The name, street address (not a post office box), and phone number of both parties.

2.  A clear and detailed statement of the work to be done (i.e., scraping to be done before painting);the quality of materials to be used (brand/grade, weight, color, size – as appropriate); and the cost of materials and labor to be used in performing the work.

3.  Guarantees on materials and on the contractor’s labor. Quality of workmanship should be addressed. A good general phrase for all contracts is: “All work will be done in a neat and workmanlike manner and to the current standards of the trade.”

4.  Agreement by the contractor to obtain all necessary permits from your city’s Building Department and to “do all work to the code of your city.” (If drawings are required, it should state that the contractor will provide them.) Remember, Building Code generally sets only a minimum repair standard. You may wish to exceed that standard in quality of materials or method of repair.

5.  An understanding that the contractor is responsible for any work subcontracted. If the job is large, it should state which portions will be subcontracted – and the names, business addresses, and phone numbers of subcontractors to be used.

6.  Certification of contractor’s workers’ compensation and insurance coverage and an understanding as to responsibility for personal injury and property damage during the work.

7.  Estimated start and completion dates, how long the job will take once begun and arrangements for clean-up, scrap, and waste disposal.

8.  Payment schedule. The contractor may ask for an initial deposit (and this may be reasonable for materials that involve a special order), but we recommend that payment only be made for value received – for materials delivered to the site or for portions of work completed. Payment upon completion is preferable and should be the rule for small or quickly completed work, but progress payments are acceptable for larger jobs. A good rule is one third, another third, with the final third held until completion. Another method is to pay for definite portions of work, on a job-by-job basis (roof completed, then paid). It is not wise to pay for one third of a job if you cannot tell that one third is done. No payment should be made for any portion of work until it has been completed to your satisfaction and any permit work has been inspected and approved by your city’s Building Department.

9.  A statement that all contract changes must be in writing and agreed to by both parties.

NOTE: If you have an attorney, it would be wise to have the attorney look at the contract before you sign. DO NOT SIGN A CONTRACT UNTIL YOU ARE SURE YOU HAVE FINANCING – and if the contractor promises to find you financing, be sure that the contract spells out the specific terms of the financing before you sign it.