Contracting Your Contractor

February 21, 2014

PONTE VEDRA BEACH, FL, Feb 21, 2014—Choosing a contractor for your home building or remodeling can be a big decision. In order to choose the right bid, it’s important to be educated, says Rich Berges, Real Estate Professional of BerkshireHathawayHSFNR. It’s a good idea to shop aggressively for the most reasonable bid, not necessarily the cheapest. “Inexpensive, but shoddy, work will only cost you more money in the long run,” Berges reminds us.

However, once you’ve chosen who to go with, the decision making doesn’t stop there – you still have to draft a contract. Many things should be covered in a contractor’s contract, and not all contracts are outlined the same, says Berges.

According to the National Association of the Remodeling Industry, a well-written contract should contain the following information:

• The contractor’s name, address, telephone and license number, if applicable
• Details about what will and will not be done
• A detailed list of materials for the project, including model, brand name and color
• The approximate start date and substantial completion dates
• A written notice of your right to cancel a contract within three business days of signing, without penalty – provided the contract was solicited at some place other than the contractor’s place of business or appropriate trade premise
• Financial terms that are spelled out clearly, including payment schedules and any cancellation penalties
• A one-year minimum warranty identified as either “full” or “limited” to cover materials and workmanship, as well as the name and address of the party who will honor the warranty
• A binding arbitration clause, in the event a disagreement occurs

“You may also want to include a statement that you will not be responsible if payment to the contractors’ subcontractors and suppliers are not made,” suggests Berges. Another tip? Berges says you should consider establishing that the contractor should obtain all the necessary permits. In order to cover your bases, it’s also smart to have your contractor fill in all blank spots in the contract with phrases like “does not apply.”

For more real estate information, please contact BerkshireHathawayHSFNR at [email protected], 904-477-0799, or BerkshireHathawayHSFNR.

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