The Real Estate Browser Volume 8, Issue 16 - Page 6

Make Sure Your Contractor Puts It in Writing
6 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 8 Number 16 www . LynchburgRealEstateBrowser . com

Make Sure Your Contractor Puts It in Writing

By Drew Howard , President , HomePro , Inc .
Twenty five years of inspecting homes and providing renovation consultation I have seen time and time again contractors that leave open ended contracts . As a homeowner in a renovation mind set you are anxious to get the project underway and complete . You have put full confidence in your contractor to perform the work . Having said that there are several steps that are recommended before signing your contract .
Make sure that the contract includes a start and finish date of the project . Typically most projects can be completed within 6 months . If you are using a bank or doing draw inspections there are usually no more than 5 draws payments during the project . Never give the contractor money upfront for the job . There are several specialty order items that are permitted i . e .: cabinets , windows , and fencing . The contractor knows that money upfront is not permitted by law . Next make sure the contract spells out all the work to be complete . Try to stay away from cost plus contracts because that can lead to many overages .
It is up to you as the client to control emotions and not to make many changes . Change orders are a headache and the cost can add up quickly in your cost .
Always include a contingency reserve amount for overages , change orders , and price changes of materials . Typically the rule-ofthumb is 10 to 20 % of the total cost of renovation . The contractor should include in the cost : permits , insurance , temporary power if needed , dumpster , clean-up , and provide lien waivers of all sub-contractors .
Remember you can always hire an independent 3rd party to inspect and review all work and contracts before and during the project . If you about to start a renovation project don ’ t hesitate to give me a call to help you move the project along smoothly from start to finish .
If you have any questions about inspections or want to suggest future articles please give me a call . 434-660-3449 . Thanks Drew Howard
6 — Say you saw it in The Real Estate Browser of Lynchburg — Volume 8 Number 16 www.LynchburgRealEstateBrowser.com Make Sure Your Contractor Puts It in Writing By Drew Howard , President, HomePro, Inc. Twenty five years of inspect- ing homes and providing reno- It is up to you as the client to control emo- tions and not to make many changes. Change vation consultation I have seen time and orders are a headache and the cost can add up time again contractors that leave open ended quickly in your cost. contracts. As a homeowner in a renovation mind set you are anxious to get the project underway and complete. You have put full confidence in your contractor to perform Always include a contingency reserve amount for overages, change orders, and price changes of materials. Typically the rule-of- the work. Having said that there are several thumb is 10 to 20% of the total cost of reno- steps that are recommended before signing vation. The contractor should include in the your contract. cost: permits, insurance, temporary power if Make sure that the contract includes a start and finish date of the project. Typically most projects can be completed within 6 months. needed, dumpster, clean-up, and provide lien waivers of all XX۝Xܜ˂[Y[X\[H[[^\\H[[KBY[H\H\[H[܈[][XH[[ ܙ\H[X[]Y][[ۜ\H\H\X[H[ܙH[ H]ܚ[۝XYܙH[\[B^[Y[\[HڙX ]\]HHڙX Y[HX]\H[ݘ][ۂ۝X܈[ۙ^H\۝܈H؋\B\H]\[XX[Hܙ\][\]\H\BZ]YKKX[][[[[˂H۝X܈ۛ][ۙ^H\۝\\Z]YH]ˈ^XZH\HBڙX۸&]\]]H]HYHH[[[H[ݙHHڙX[ۙ[HB\[\ Y[H]H[H]Y\[ۜX][XB۝X[][HܚHKH[ۜ܈[Y\]\H\X\X\B]KH^H]^HH\ۋH]HYHH[ M L K[]XX]\H][XYX[Hݙ\Y\ˈ\