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A contract should contain everything agreed upon by you and your licensed contractor. It should detail the work, price, when payments will be made, who gets the necessary building permits, and when the job will be finished. The contract also must identify the contractor, and give their address and license number.
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.)
The contract should include a project description that thoroughly outlines all of the work, materials, and products that will go into the job. That includes everything from what will be demolished to what will be constructedand each different material and fixture that will be used, with its associated cost.
8 Things Every Remodeling Contract Should Have Scope of Work, Selection Sheet and Drawings. License Number and Insurance. Description of Change Orders. Warranty information. Subcontractor Agreements. Payment schedule. Completion Schedule / Timeline. Clauses Required by Law.
Elements of a Construction Contract Name of contractor and contact information. Name of homeowner and contact information. Describe property in legal terms. List attachments to the contract. The cost. Failure of homeowner to obtain financing. Description of the work and the completion date. Right to stop the project.
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There are jobs where a deposit is normal and required. If your job requires the purchase of nonreturnable, custom-ordered products, the supplier often asks for a 50 percent deposit. The contractor needs to supply this, or the homeowner can pay it directly to the supplier.
5 Key Elements Every Construction Contract Should Contain 1) The projects scope. 2) The cost and payment terms. 3) The projects time frame. 4) Protection against lien law. 5) Dispute resolution clauses.
Heres a guide to what a good contract should include: Homeowner identification. Fill in your name, home address, email, and contact telephone number(s). Contractor identification. Description of the work. Building permits and inspections. Project dates. Total cost. Payment schedule. Financing terms and conditions.
As the homeowner who is commissioning the project, its reasonable to withhold at least 10% as your final payment. Avoid paying in full upfront, and definitely avoid paying anything before the contractor has evaluated the project in person.
A home construction service supplier may take as a down payment not more than ten per cent of the contract price before the suppliers performance that is required by the contract begins, except a supplier may take as a down payment not more than seventy-five per cent of the total cost of any special order item that is

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