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