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Home improvement contracts protect the rights of general contractors when remodeling a client’s home. They must contain important provisions to make sure projects are successful and prevent future disputes.
The article below will help construction company owners and home owners understand everything they need to know about home improvement contracts:
What is a Home Improvement Contract?
A home improvement contract, also known as remodeling contracts, is a legal agreement between a property owner and a general contractor. General contractors provide them to customers when performing construction work on residential real estate.
The legal document addresses the scope of work, timeframe for completion, compensation, and other relevant matters. It is in everyone’s best interest to ensure they are protected by a written contract, even if they are hiring for a small job, such as painting a room.
You can learn more about home improvement contracts by checking out this article .
How To Write A Home Improvement Contract
There are several ways to approach writing a home improvement contract. How you approach the process depends upon how much you want to protect yourself legally and financially. Consider the following three options:
Option 1. Use a Boilerplate Template
The first option is to utilize a boilerplate form online. While this option may seem appealing since it can save you legal fees, you risk offering contract terms that don’t make legal sense for the project. If the customer disputes your work and takes you to court, then you’re left dealing with the consequences of a poorly drafted contract.
Option 2. Write the Contract Solo
The second option is that you can write a new contract from scratch on your own. Take the following steps for a better result:
- Step 1 . Gather relevant information about the contract.
- Step 2 . Find numerous online templates from which you draw inspiration
- Step 3 . Start rewriting the key provisions in a word processor
- Step 4 . Rewrite the terms so that they meet the verbal intent
- Step 5 . Speak with a construction lawyer if you are unsure about specific provisions
- Step 6 . Print out copies of the home improvement contract
- Step 7 . Ask your client to sign the agreement in blue ink
- Step 8 . Provide hard and digital copies to your client for future reference
Option 3. Hire Construction Lawyers
Most professional or large construction companies hire construction lawyers to draft agreements directly. While this approach is thought of as the most expensive option initially, it could save your company money in the long run by helping you avoid future disputes and litigation. Working with a legal professional is akin to buying reassurance.
Key Parts of a Home Improvement Contract
A home improvement contract serves as the guide for the entire construction project. Written contracts ensure greater success and prevent future miscommunications among parties. Keep your agreements simple and in plain language so that all parties understand expectations.
It’s helpful also to incorporate the key parts of a home improvement contract as follows:
Key Part 1. Scope of Work
Home improvement contracts begin with a scope of work that outlines service and part inclusions and exclusions. The proposal should explain how the work is to be performed, parts used, materials storage, and clean-up. It should also include floor plans and artistic renderings of the proposed work.
Key Part 2. Licensing and Insurance
Licensed contractors must display their license number and permits on promotional materials or vehicles bearing the name of their company. Their license number must also be visible on all communications between general contractors and property owners, including contracts, estimates, invoices, and proposals. Construction companies should also list the name of their liability insurance provider within the agreement.
Key Part 3. Change Orders
Home improvement often involves clauses that address repairs not included in the original quote. Construction company owners should clearly outline the process of dealing with unexpected expenses. Change orders can assist if this situation arises by allowing the property owner to issue contractual change approvals on added costs.
Key Part 4. Warranties
A contract should indicate what is covered by a warranty. You will also want to identify responsibility for making repairs. It’s customary to uphold all manufacturer warranties in addition to at least one year on your company’s craftsmanship, engineering, and design.
Key Part 5. Subcontractors
Your home improvement contracts must also identify the names of subcontractors and subcontractor agreements you have in place. For the best result, insert the license and insurance information for each subcontract as well. It’s also a good idea to have your contractor sign a waiver for every payment received.
Key Part 6. Payment
Payment schedules should be specified in the contract and utilize progress payments. Progress payments should be made at the start of specific project milestones rather than at the end. Identifying the beginning of a new milestone is more practical than determining completion dates.
Plus, your construction company guarantees some form of compensation before beginning new work.
Key Term 7. Schedule
A contract should outline relevant dates, including start and end dates. These dates may change, but there should be a system that communicates any changes between the parties in a timely and straightforward manner. It’s not uncommon to face unexpected events during the course of a home improvement project.
Key Part 8. Inspection
Another critical component of home improvement contracts includes inspection provisions. You will want to describe the inspection of the premises before beginning work, upon completion, and gaining approval from a licensed inspector. Describe who is responsible for paying inspection fees as well as document filings and registrations with the county clerk and recorder’s office.
Key Term 9. Other Clauses
Depending upon the state in which you live, there are state-specific laws that your contract should incorporate. There are also other standard contractual provisions to add to your agreements as a matter of form, validity, and enforceability.
Here are a few other clauses you may want to include based on your customer’s needs:
- Contingency clause
- Misinformation clause
- Liability clause
- Termination clause
- Indemnification clause
- Choice of law clause
Home improvement contracts are complex. Reviewing examples can help you solidify your understanding. For more information about the key parts of a home improvement contract, check out this sample .
Image via Pexels by Laurie Shaw
Getting Out of a Home Improvement Contract
The most common way to get out of a home improvement contract is to negotiate the termination. Start by contacting your client or contractor and let them know that you need to end the agreement. Stick to general information and facts since they can later use your words against you as evidence should a dispute arise.
You might have to pay a termination fee if one was included. For situations involving incredibly complex matters, you should always seek legal help for getting out of a home improvement contract with minimal disruption to your business.
Home Improvement Contractor vs. General Contractor
Home improvement contractors are a type of general contractor. General contractors refer to companies that perform construction work on residential and commercial properties. The designation of home improvement contractors indicates that the company performs work on existing structures rather than new construction builds.
Get Help with A Home Improvement Contract
Get help with a home improvement contract by working with construction lawyers . They understand the legal complexities of the construction industry and help you draft the formal agreements when working with company stakeholders, such as customers, vendors, and clients. Their guidance and responsive services ensure that you avoid making legal mistakes while protecting your financial interests. Post a project in ContractsCounsel’s marketplace today to get free bids from vetted lawyers for your project.
Meet some of our Home Improvement Contract Lawyers
Don G.
Texas licensed attorney specializing for 22 years in Business and Contract law with a focus on construction law and business operations. My services include General Business Law Advisement; Contract Review and Drafting; Legal Research and Writing; Business Formation; Articles or Instructive Writing; and more. I am able to draft and review contracts, and have experience with, contract law and business formation in any state. For more insight into my skills and experience, please feel free to visit my LinkedIn profile or contact me with any questions.
Kelvin R.
Experienced business and contract lawyer. Our firm specializes in commercial litigation and dispute resolution.
Ryenne S.
My name is Ryenne Shaw and I help business owners build businesses that operate as assets instead of liabilities, increase in value over time and build wealth. My areas of expertise include corporate formation and business structure, contract law, employment/labor law, business risk and compliance and intellectual property. I also serve as outside general counsel to several businesses across various industries nationally. I spent most of my early legal career assisting C.E.O.s, General Counsel, and in-house legal counsel of both large and smaller corporations in minimizing liability, protecting business assets and maximizing profits. While working with many of these entities, I realized that smaller entities are often underserved. I saw that smaller business owners weren’t receiving the same level of legal support larger corporations relied upon to grow and sustain. I knew this was a major contributor to the ceiling that most small businesses hit before they’ve even scratched the surface of their potential. And I knew at that moment that all of this lack of knowledge and support was creating a huge wealth gap. After over ten years of legal experience, I started my law firm to provide the legal support small to mid-sized business owners and entrepreneurs need to grow and protect their brands, businesses, and assets. I have a passion for helping small to mid-sized businesses and startups grow into wealth-building assets by leveraging the same legal strategies large corporations have used for years to create real wealth. I enjoy connecting with my clients, learning about their visions and identifying ways to protect and maximize the reach, value and impact of their businesses. I am a strong legal writer with extensive litigation experience, including both federal and state (and administratively), which brings another element to every contract I prepare and the overall counsel and value I provide. Some of my recent projects include: - Negotiating & Drafting Commercial Lease Agreements - Drafting Trademark Licensing Agreements - Drafting Ambassador and Influencer Agreements - Drafting Collaboration Agreements - Drafting Service Agreements for service-providers, coaches and consultants - Drafting Master Service Agreements and SOWs - Drafting Terms of Service and Privacy Policies - Preparing policies and procedures for businesses in highly regulated industries - Drafting Employee Handbooks, Standard Operations and Procedures (SOPs) manuals, employment agreements - Creating Employer-employee infrastructure to ensure business compliance with employment and labor laws - Drafting Independent Contractor Agreements and Non-Disclosure/Non-Competition/Non-Solicitation Agreements - Conducting Federal Trademark Searches and filing trademark applications - Preparing Trademark Opinion Letters after conducting appropriate legal research - Drafting Letters of Opinion for Small Business Loans - Drafting and Responding to Cease and Desist Letters I service clients throughout the United States across a broad range of industries.
Sara S.
With over ten years of intellectual property experience, I’m happy to work on your contractual matter. I am very diligent and enjoy meeting tight deadlines. Drafting memoranda, business transactional documents, termination notices, cease and desist letters, licenses and letter agreements are all in my wheelhouse! Working in a variety of fields, from construction to pharmaceutical, I enjoy resolving any disputes that come across my desk.
July 11, 2023
Kennedy W.
Graduated from Washburn University School of Law with certificates in Tax Law and Business Transactions. Served as a specialized tax advisor and business consultant to clients across the nation over the last 8 years. I have practiced law since 2019, specializing in entity formations, contract drafting, contract review, contract disputes, business transactions, demand letters, legal research, and general business consulting.
July 31, 2023
Matt T.
Matt is a licensed attorney based out of Dallas, Texas. Despite having recently graduated, Matt has been immersed in the world of Corporate law throughout law school and beyond. As a result, he has benefitted from the unique and advantageous position of experiencing and working on a wide array of matters, such as reviewing, drafting and negotiating contracts, overseeing regulatory compliance, business formation, risk management, and much more. Contact Matt today for a free consultation!
July 14, 2023
Penny R.
I have practiced law for more than 35 years in the State of Texas. I am proud of the relationships I have formed with my clients and the high level of legal advice I have provided over these many years. I am responsive and will promptly address your particular situation. For 35 years I have counseled individuals, partnerships and corporations with regard to business formation, real estate transactions and issues, employer/employee relationships, contracts, estate planning and asset protection. I am licensed to practice law in all state courts in Texas and all federal courts. I have represented plaintiffs and defendants throughout the state in cases ranging from contract disputes to injury claims. I have worked with every type of business you can imagine from individuals to "mom and pop" businesses and businesses with assets of more than $10,000,000. My clients' businesses range from large construction contractors, investment companies, oil and gas companies, and commercial landlords, to name a few.
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ContractsCounsel User
Contract and Addendum Review
Location: Florida
Turnaround: Less than a week
Service: Contract Review
Doc Type: Home Improvement Contract
Page Count: 3
Number of Bids: 6
Bid Range: $350 - $650
ContractsCounsel User
Home renovations contract
Location: Virginia
Turnaround: Over a week
Service: Drafting
Doc Type: Home Improvement Contract
Number of Bids: 3
Bid Range: $450 - $1200
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