Some basic advice about contracts

"The large print giveth, and the small print taketh away."
-Tom Waits

By the time you are sitting down to sign a contract with your contractor, the last thing you're interested in doing is reading fine print while pretending you have any idea what all the lawyer-speak jargon means. Most good contractors will offer to read through the contract with you, some may just offer you time to look over it and answer any questions you have. Here's some free advice about home-improvement contracts:

1. ALWAYS have a contract when hiring someone to perform work on your home. (There's a reason they call themselves "Contractors.") Although home-improvement contracts are written to mainly protect the contractor, there are also things within them that define your rights as well.

2. Always have a contract when hiring someone to perform work on your home. This bears repeating.

3. Make sure the contract specifically spells out what work is being performed. Getting a new roof? Well, are the old shingles being stripped off first? Is any sheathing being replaced? What brand, type and color of shingles are being used? Is the flashing going to be replaced too? If you are having a new addition put on, what are the exact dimensions? You don't need to clarify how many nails are being used, just use common sense and ask for any clarification offered to be written into the contract.

4. Is the payment schedule laid out clearly? When are draws required to be paid? Always make sure there is some money left on the table at the end so that you have some leverage. It doesn't have to be a lot, but it's much easier to get someone to return a call when you owe them money.

5. Who's responsible for what? Are you pulling the permit? Do you have to be home? Who's handling utility issues, if any?

6. When is the work being done? How long will it take, and when will it be finished?

7. Make sure the deposit is not more than 1/3rd of the total cost of the contract. There is no reason it should ever be over 1/3rd.

The purpose of a contract is to clarify terms for both you and the contractor. You should never assume anything, I'm sure you've heard what assuming does. Take some time to review the contract. Many contractors will e-mail you a copy of their standard contract ahead of time if you request it. Also, you should have a grace period of a few days if you choose to cancel the contract. Check with your local govenment to see what the law is.

Remember, a contract is only as good as the relationship you have with your contractor. You should feel comfortable with the people you hire. If the salesman is late for meetings, doesn't answer his phone when you call or runs over your cat in the driveway, a contract isn't going to fix it.

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