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Home Remodeling Contract Negotiating
Pitfalls to Avoid when Negotiation a Home
Remodeling Contract
By Mark J. Donovan
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When soliciting bids for a home
remodeling contract it is wise to obtain at least three bids. This way you
can compare the specifics of each contractor bid with one another to
determine the best one for your home remodeling project. Also, all home
remodeling contractor bids should be in writing. Never accept a verbal bid
from a contractor, as it is a recipe for disaster down the road.
In general it is best to go with bids priced in the middle. Low bids could
leave you with shoddy workmanship, and high bids could mean you are being
price gouged.
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This doesn’t mean that you should
accept the middle priced contractor bid at face value. It simply means that this
is the contractor you may want to engage in with home remodeling contract
negotiations.
During the negotiations, question the contractor on specific material and labor
costs if you have concerns. Don’t raise your questions in an arguable or
threatening tone. Simply ask the questions in a courteous manner.
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When analyzing the home remodeling
contractor bids, make sure to confirm that they comply with the home remodeling
specifications, and all local and national building codes. Also, check that all
materials are clearly specified. Note where you see disparities or have
questions so that you can raise these questions with the contractor when
negotiating the home remodeling contract.
Also check the contract for a “date
of signing” section, start and completion dates, and a list of any
subcontractors (names and contact information) that may be used in performing
the home remodeling work being negotiated in the contract. You may want to
include penalty clauses in the contract if the work is not completed by the
specified date in the home remodeling contractor bid.
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Take your time reviewing contractor
bids. You should not be expected to sign immediately or on the spot. Take the
time to fully review it before signing. Also, you may want to take it to your
lawyer for review. Signing a contract before you completely understand all the
terms and conditions can cost you a fortune and disappointment down the road.
When reviewing the contractor proposals, make sure there is language in them for
dealing with change orders. Change orders can be very costly to you so it is
important the terms and conditions for making change orders are clearly defined.
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Photo by Mark Donovan |
Feel free, as part of the home
remodeling contract negotiations, to challenge the change order process and
associated fees proposed by the contractor. Again, do not accept any verbal
statements on dealing with change orders. Guaranteed, both you and the
contractor will pay for this common mistake down the road.
| Another often forgotten clause in a
home remodeling contract is site cleanup. Make sure as part of the home
remodeling contract negotiations to include who is responsible for site cleanup,
and the frequency of it, during the life of the home construction project. Also, make sure that there is
warranty and liability language in the contract that protects you from damages
or injuries on the job site. |
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Finally, as an alternative to signing a home remodeling contractor’s contract,
you may want to turn the tables and have the contractor sign yours, preferably
produced via your lawyer. You can make references to the contractor quote in
your contract, but at least the Ts & Cs (Terms and Conditions) are generated by
you or your lawyer. This should give you more protection against the contractor
if in the event he/she fails to perform the work as specified.
By following the process of negotiating a home remodeling contract as described,
you can help to protect your investment and improve the chances of getting your
home remodeling project completed on time and budget, and to your satisfaction.
To obtain accurate and consistent home building contractor quotes, see my
Home
Addition Bid Sheets. They provide a request for quote section
that you can provide to prospective home building contractors. It also includes
a comprehensive cost breakdown table, in Microsoft Excel format, that allows the
home building contractor to include their projected home building costs for every phase of the
project.
How to Finance your Home Remodeling Project -
can help provide funds for your new home improvement project if financing is
required.
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