When building or renovating your home , it is important to get everything in writing . A contract can be a simple one-page document or a “ contract package ” of many pages , depending on the size and complexity of your project .
FEATURES OF A GOOD HOME RENOVATION CONTRACT
– CANADIAN HOME BUILDERS ’ ASSOCIATION –
When building or renovating your home , it is important to get everything in writing . A contract can be a simple one-page document or a “ contract package ” of many pages , depending on the size and complexity of your project .
Home owners can review the contract for the following common elements :
1 . Parties to the contract .
This includes who the contractor is , their name , contact information , business license where required , and business / GST number . Who you are , including your name , address ( plus project address if different ), and contact details .
3 . Project schedule .
For simple projects , a start and completion date . For larger projects , a detailed timeline that lays out significant project milestones — for example , completion of the foundation work , framing , and required inspections .
6 . Warranty .
You can ensure the contract spells out the warranty that is provided , specifies what it covers for how long , and notes limitations or exclusions .
4 . Price .
The contract sets out the full cost and payment schedule — this includes everything needed for the project , including labour , materials , sub-trades , and fees for permits and waste disposal . The payment schedule on small projects may be an initial modest down payment and a final payment . Larger projects may require one or more progress payments , tied to completion of specific project milestones .
2 . Scope of work .
The scope of work lays out work to complete and includes a description of the project ; a list of materials and products to use , including brand , name / number , colour , and dimensions ; the contractor ’ s responsibilities spelled out in detail ; and the homeowner ’ s responsibilities .
5 . Contractor ’ s insurance and workers ’ compensation .
A Certificate of Insurance , included in the contract , shows that the contractor is covered if they cause damage to your home , as well as neighbouring properties , or injury to you or third parties . A Letter of Clearance shows the workers have Workers ’ Compensation coverage . This is detailed in the contract with a letter attached . Most workers must have this coverage .
7 . Other contract elements .
A contract can contain many other clauses that deal with items like building permits , zoning variances , change orders , and dispute resolution . You can make sure the contract spells them out in detail . Always remember — when in doubt , don ’ t leave it out ; get it in writing in your contract .
Page 18 New Homes August 2017