| So you've got your drawings and design, your | | | | orders, working times, Insurances to be provided |
| permits in hand, a pile of money lined up, your | | | | (both by the owner and the contractor), who is |
| Contractor(s) reviewed and selected, and a gleam | | | | responsible for the permits and calling for |
| in your eye. Well, hang on! The most important | | | | inspections, allowability of overtime, performance |
| step is yet to come before one nail hits the job. | | | | schedules and/or expected date of completion, |
| Now you have to decide how well you are going | | | | Milestone descriptions and target dates, etc... |
| to REALLY limit your risk... | | | | Always require a schedule from your contractor. |
| The first concept to get your head firmly | | | | This can be as elaborate as you like, such as a |
| wrapped around is this: | | | | formal spreadsheet type "Gantt" chart, or as |
| If you didn't get it in writing, it NEVER HAPPENED. | | | | simple as a wall calendar marked up and initialed |
| Period. | | | | by both parties, and included by reference in the |
| This is so important, I can't stress the concept | | | | contract. This schedule must of course be |
| enough. I don't care if it's your brother's buddy or | | | | somewhat flexible, and include time for weather |
| your Uncle John- a construction project where | | | | delays, material shortages, and acts of God, |
| money changes hands in return for work is a | | | | among other variables, but it should NOT be |
| Business Arrangement, and should be dealt with | | | | open-ended! |
| accordingly. If not, you can leave yourself open to | | | | Finally we come to the Payment terms. These |
| a huge risk of loss, both financially and spiritually! | | | | should include the statement "Contractor agrees |
| No reputable contractor will have any problem | | | | to perform all work as specified, pursuant to the |
| whatsoever with preparing and executing a | | | | terms of this contract along with all exhibits and |
| written agreement on a project- no matter WHO | | | | attachments, for the sum of [list contract sum |
| they are to you personally; In fact, they will | | | | here]. to be paid as follows: [list payment schedule |
| admire and respect your intelligence and | | | | here]". |
| responsibility. You see, a properly drafted contract | | | | Again, the terms of payment may be as |
| protects them as much as it does you... | | | | elaborate as you care to make them. I always |
| The actual Contract need not be elaborate, but | | | | recommend that any and all payments be tied to |
| there are certain sections that are vital. The first | | | | performance of some specific milestone or event, |
| is the names of the parties or entities executing | | | | such as: xx% down; xx% upon completion of |
| the agreement, the date the agreement is being | | | | foundation work and backfilling; xx% upon |
| entered into, and the legal description of the | | | | completion of rough framing and exterior |
| property being improved. If it is an established | | | | enclosure; etc...Trust me, your contractor may |
| structure with a postal address, that full address | | | | not like this, but be adamant. You have NO |
| is usually sufficient. If raw land or an unimproved | | | | OTHER "stick to beat them with" except your |
| lot, you will need to list the survey information | | | | checkbook! Use it firmly but fairly. Once again, a |
| which includes: the County, Township, Section, and | | | | reputable and honest contractor should have no |
| Range, among other details. You can get this | | | | problem with this: it is actually to their benefit, as |
| information from the title or deed, or from your | | | | it clearly defines when they are going to get paid |
| local County or Township Government offices. | | | | as well! If they want to get paid, they have to |
| Second, you should clearly list the entire scope of | | | | perform. Simple as that. |
| work. If you are acting as the General | | | | Last but not least, include places for all parties |
| Contractor, you will need to prepare a separate | | | | involved to sign and date the Contract. In the |
| contract for each Sub-Contractor. If you don't | | | | case of a private property, all persons listed on |
| have drawings and specifications for the project, | | | | the title should sign (husband and wife both, all |
| you will want to list exactly what you are | | | | partners, etc.). In the footer, include a statement |
| expecting to be done: for example, remove and | | | | detailing how a dispute will be resolved, and where. |
| dispose of existing kitchen countertops; Provide | | | | I live near my state border, and there are a lot |
| and install new countertops and 4" back splash as | | | | of contractors that cross the line to work. If you |
| manufactured by [insert vendor], style [insert | | | | don't want to have to travel in case of a suit |
| style and type], color [insert color]. You don't need | | | | being filed against you out of area, you should call |
| to list every screw and nail, however the | | | | out what state and court system to be used in |
| "standard of work" statement "All work shall be | | | | case of a dispute, such as "This contract shall be |
| performed in a competent, workmanlike fashion, | | | | administered under the laws of the state of |
| following accepted industry trade practices" should | | | | [insert state]. Venue for any dispute shall be the |
| be included. This allows you to have an impartial | | | | [insert judicial circuit or court and county]. |
| third party expert inspect the work and give an | | | | In closing, let's summarize what the contract |
| opinion as to the suitability of the work in case of | | | | should include: |
| a dispute or before making final payment (see | | | | - Names of parties to the Contract |
| chapter on close out). | | | | - Date Contract entered into |
| A quick and clean way to enumerate the scope | | | | - Detailed scope of work and document |
| of work is to attach the quote to the contract as | | | | references |
| "Exhibits". If you are satisfied that the quote you | | | | - Special conditions to the Contract |
| received from your chosen contractor is detailed | | | | - Schedules and Milestones |
| enough, simply call it out in the contract, for | | | | - Payment amounts and terms |
| example: All work to be as per the quote for | | | | - Signatures of all parties involved with dates |
| [short description here], prepared by [contractor | | | | - Venue for dispute resolution |
| name], dated [date here], which is hereby | | | | Following these simple rules will help ensure that |
| attached as [exhibit A, B, etc...] and is/are included | | | | you have a good experience with your project, |
| by reference. If you have drawings, include a | | | | and go a long way towards avoiding disputes. |
| reference to them as well, and list all pages, such | | | | Disclaimer: The Author, while an experienced |
| as: "[And/Or] as per the drawings and | | | | Contractor and Construction Manager, is NOT an |
| specifications as prepared by [Architect or | | | | attorney, and no part of this article should be |
| designer here], dated [date here], [revisions if | | | | construed as the giving of legal advice. Contract |
| any], sheets [list all: A-1, A-2, E-1, etc...], and is/are | | | | laws vary widely from state to state, and can be |
| included by reference. After the detailed scope of | | | | very complex depending on the scope of the |
| work, remember to include the "Standard of | | | | project. You are encouraged to seek competent |
| Work" statement from the last section! | | | | legal advice from a licensed Attorney before |
| Third, list any special conditions for the project, | | | | relying on any information or language in this |
| such as the process for dealing with change | | | | article, and before executing any contract. |