8+ Sample Home Improvement Contract

What is a Home Improvement Contract?

A home improvement contract is a written document made by an owner of a house and a home contractor. This contract is legally binding. It tells all the things that you can expect on the remodeling of your house. On the other hand, it states how you are going to pay the contractor. It has all the terms that you need to have in your home improvement. Usually, a home improvement contract is needed for all projects that exceeds $500. It must be legible and will tell the rights of both parties. Everything that you and the contractor have talked about verbally should be written in this contract. It will also dictate how a house should be remodel. It can be a roadmap that the two parties can follow as they go through the home improvement process. It would be hard to start a house renovation without a contract like this. The contract is what going to guide the homeowner and the contractor how they can complete the deal. In all cases of home remodeling, there should be a general contract that both parties could sign.

What are the Things That are Included in a Home Improvement Contract?

Before signing a contract with home improvement contractors, you must be sure of all the things that it contains. This article gives you the information about the things that your home improvement contract should have.

Good Formatting The contract must be in good writing and should have a certain format. If you will handwrite it, it should be legible. Only a few person would do that nowadays. Be clear to include the words “Home Improvement”. Use at least 10-sized font. Type it in bold letters. All your texts must not be smaller than these also. Put also headings in bold letters.The Start of the Work The contract should have the right timing for the job. Before the remodeling would start, the home improvement contract should be given by the contractor to the homeowner. It should be signed and have its right date. It should have this statement: “This agreement entitles that the homeowner and the contractor should both sign before the work should begin.”Dates and Addresses On the top page of the contract, it should have the date when the homeowner signed the document, and the address of the home improvement contractor. It is important so the buyer can have a cancellation notice that can be sent through the given address. Anytime that you would change your mind, you can cancel the agreement.The Licenses The contract must have the name of the contractor, the business address of the contractor, and the license of the contractor. License number is necessary to know and to be secured that the contractor is illegible to work for the remodeling of your house. Without it, you must not trust the contract to provide the work that is promised. Contractors must show their licenses first to prove that they are skilled in the home improvement job. They can also show all the other registration details.Scope of the Project The contract should contain a description of the project. All the work that is needed to be done should be stated. How a contractor will actually remodel your house should be clear and visible. This is the very important part because this is what the homeowner is expecting from the job that should be done. Every contractor must clearly enumerate all the work that they will do to the house. From the kitchen remodel to the yard improvement, they must clearly include the scope of the project. The contract will also be approved and signed according to the goodness of the scope of the project. You should also put all the materials and equipment that you will use in executing the job. It should also contain scale drawings and construction specifications.The Timeline For the Contract You must include the approximated date that the project will start and the approximated date that you are going to have the project completed. Make the dates realistic and enough for the contractor to finish the work. Since the project is a contract project and you will pay for the project as a whole, you can give a little extra time to the contractor, so they could give you a better work. This is recommended, so that your house will be made more beautiful. Do not put them in a hurry, so they can put a better touch to your house.Contract Cost The contract price in dollars must be clearly included in the contract. This price is cannot be altered. Agree on a price that both of you will be contented about, a price that would be reasonable enough for the both of you.Downpayment If there is a downpayment that should be made, put a headings for it and write the price of the downpayment. Usually, the downpayment cannot go over $1000 or 10% of the total contract cost. The homeowner will pay whichever could be less. There are contractors who do not require a downpayment, but most contractors require it.Payment Terms The contract must be definite about the payment terms. If there could be progress payments, you must state how it will be done. Tell the amount of work that could have a particular payment in advance. Be clear about the payment terms, so that you will not have anything to argue about. Put a heading about the progress payments and input the details into it.Extra Work A form for extra works and change order must be incorporated in the contract. Its cost must be subtracted or added to the contract cost and the terms must be included in the written document. Estimate the price of the extra work and the things that you want to change in the remodeling of your house and agree on it. After both of you have agreed upon certain things, fill out the form and sign it again.Waiver The contract contains that after giving payment to the job, the contractor should give the homeowner a release from all the claims or lien.Insurance The contract also contains a statement about insurance. It is to protect both parties from any loss. They could turn to insurance in case everything like it happens.Right to Cancel This states that the buyer can anytime cancel the contract. This event could happen in different reasons like finding a better contractor or not having sufficient money to pay for the project. The number of days that a buyer can cancel are 3 days to 1 week. If there could be a change of mind in the said number of days, the buyer can cancel the project. There would be no obligations left for both party and both will be free from the contract.

Tips on Home Improvement Contract

To have your house remodel requires a lot of things. It requires your patience before the work would be completed. And a lot of tips that you can use while you have it!

Consider the sources of the contractor. One of the main points that you have to consider in getting a contractor is the sources that they can give to the project. You have to be contented with the materials that they are going to use in the improvement of your home. If they would not have a good supply of materials, you cannot be certain that they can do a good job. Materials are greatly to be considered. A good material is what could make your house beautiful. To add also, you have to ensure durability. You cannot have materials that could crack in months. Make sure that the contractor have sources that can last for years.Hire experts. When you are negotiating to contractors about your home improvement, assess how expert they are in remodeling houses. Inquire about the projects that they have completed before. Ask for proofs like pictures of the homes that they have remodeled. If they can show you good pictures that can make you say “Wow!”, then you would know that you are on the right track. Remember, that you have to be sure that they have skilled workers that can do the job. Request also for certifications. This thing would assess their skills.Get an architect. If you want the best for your home. you can consult an architect. They can provide you construction drawings and they can advise you on a good contract price. From your bedroom to your kitchen, you can have the best design for your home. The odds may be pricy but you can be sure that you can get the best out of it. You will not be sorry because you will later see the results when the contractor has finished the design that the architect has drawn. You will see how perfect it would be.Buy supplies at auctions. A lot can be saved if you will buy the materials for your house at auctions. They have the best materials at the lowest prices. Through patience and diligent searching, you can find good materials that can be good for your home improvement. Watch out for auctions that can be done near your place. Search for it on the internet. Ask also your friends if they know certain auctions that are about to happen. You should be thrifty these days as it is hard to earn money. Auctions also has the best home goods so it would be good for you to try it.Make your dream house come true. So you will have to spend to remodel your house. Since you are going to spend, make the most out of it. Make the contractor do your dream house. Get an architect that can turn your dream into paper. And when your dream is visible, help the contractor in making your dream house. Ask the contractor for the best materials that can be used and buy it. You pay extra for your dream. The remodeling of your house can be good for years, so do not sweat on spending a little more.

How to Create a Home Improvement Contract

If you would like, you can write a self-made home improvement contract. Have the following instructions as it will help you:

Step 1: Find home addition contractors.

Before you can make a home improvement contract, search for the best home remodel contractor. You can do a research on the internet. Consider their past works, so you would know you can hire a good one. When you are decided on a specific contractor, contact the contractor and start negotiating your home improvement. If you found the contractor good for the work, then it is good for you. But if you have doubts, you can look for another one on the internet again.

Step 2: List all the improvement that you want for your home. 

When you find a contractor, the next thing that you have to do is to be clear about the details on how you want your home to be improved. List the things that you want to change in your house. Make sketches that will describe your ideas. Consider the cost, so you can adjust all your wishes for your home. Canvas on the materials that can be used in remodeling. Do it yourself. By doing that, you will not be ignorant of the prices that are involved in remodeling. No contractor can take advantage of you if you know the market price of a home improvement. Then finally, finalize the improvement that you want to be done in your house and talk to the contractor about it. Ask for their ideas because it can make your ideas better. They are professionals in that thing, so ask for their opinion. After agreeing on certain designs and prices, you can write the letter or the written agreement.

Step 3: Make a contract.

As a most basic rule in making contracts, find the best template for you. Edit the template and input all the details that you and the contractor have agreed upon. Make headings for each subject and use a font that is readable. Title your document properly. Put the dates that are necessary in the agreement and the contract price. Include building permits and requirements for inspections. Put also arbitration provisions. At the end of the home improvement contract, have a good place for signatures.

FAQs

Can Contractors Get a “Mobilization Fee”?

Start up fees may cost a thousand of dollars that can be asked before a work should start. But those who ask for this thing is getting a risk for themselves. It is illegal. You cannot ask payment for a work that you have not delivered. A contractor must be contented with the downpayment because it is the right thing to do.

How Do Progress Payment Works?

You can ask payment for milestones in the project. You can divide all the work and have payments for a particular work that is completed. The contractor and the buyer must talk completely about this so that they would know how to do the progress payment.

So you want a home remodel. Prepare a home improvement contract. This will be the help after you have found the right contractor. The contract will save you from a lot of trouble. It can ensure that your home will be remodeled in time. You will spend a lot of money if you will do a home improvement, so it is better to have a home improvement contract before starting the work. You can be sure that you can have a good remodeling in your house if you will make a contract like this.