SMS Home Repair Contract

Aug 6th, 2022
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How to SMS Home Repair Contract

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When hiring someone for home repair work, a contract is essential to protect against dishonest contractors. Many states require written contracts for projects over $500. Key elements to include are the project start and completion dates, contractor responsibilities for permits, a payment schedule, a detailed list of materials (with costs, colors, and brands), warranties, handling of change orders, responsibilities for cleanup and property damage, and your right to cancel within three business days. There are two contract types: fixed price and time and materials. A fixed price contract details all costs, safeguarding against exceeding the original estimate and maintaining the budget.

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To cancel, the buyer need only give the contractor written notice of his or her intent not to be bound by the contract. Under the law when the contract is canceled the seller can be required to return the entire contract amount and restore a consumers property to the way it was before the contract.
Seven elements to include in your home renovation contract Parties to the contract. Scope of work. Project schedule. Price. Contractors insurance and workers compensation. Warranty. Other contract elements.
An up-front payment is reasonable to allow the contractor to acquire needed materials. However, it generally should not represent more than one-third of the entire project. If a contractor asks for all or most of the money as a down payment, it may signal financial trouble.
The exact deposit amount contractors ask for upfront varies and is especially dependent on the size of the project. For relatively small jobs, like a $16,000 bathroom remodel, contractors may ask for a 50% deposit. For large jobs, like a $100,000 full-home renovation, a 10%20% deposit is more typical.
Avoid paying in cash. Contractors cannot ask for a deposit of more than 10 percent of the total cost of the job or $1,000, whichever is less. * (This applies to any home improvement project, including swimming pools.)
Avoid paying in full upfront, and definitely avoid paying anything before the contractor has evaluated the project in person.
Connecticuts prompt payment laws assess an interest penalty on late payments at 1% per month. The interest begins accruing 10 days after the property owner receives written notice of nonpayment from the unpaid party. Attorney fees may be awarded if a court finds the payments were withheld unreasonably.

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