Home Improvement Contract Tips

It's time to bring your dream home to life. You've hired a contractor to take care of those renovations you've been wishing for. Before the hammer starts swinging, make sure you've got a firm home improvement contract in place.

These days, almost everyone is thinking about home improvements. There are relatively small jobs, like fresh landscaping or a new kitchen floor. Then, there are swimming pool installations and other extravagant projects. Large or small, if your job requires the services of a hired professional, you need to have a home improvement contract in place.

What do you need to know before signing the dotted line?

Shop Around

Don't just agree to sign a contract with the first home improvement professional you meet. Ask around for referrals from people you know and trust. Once you've compiled a list of contractor names, get their professional license numbers. This will allow you to perform a background check using services available to you, such as the Better Business Bureau or your state or provincial Consumer Affairs' business licensing division.

Match the names with the numbers, and follow up on any complaints that may have been issued against the contractors. Be as thorough as you would when checking references with a new employee.

List Your Terms

Once you've established all of the required background information and chosen your contractor, it's time to sign a home improvement contract. According to experts, there is a long list of concise information that you should look for in a written home improvement contract.

First and foremost, look for the full information of the contractor or company, including the professional license number. Your home improvement contract should also include every detail of the project, start and finish dates and financial details including material costs, labor fees and payment arrangements.

A "right to cancel" clause is an important point to look for in your contract. This gives you the opportunity to change your mind about the contract after you've signed it. You should have no less than three days' grace, during which time you are free to cancel. You should also be protected, by means of your contract, should you come up against unforeseen circumstances that prevent completion of the project.

Don't forget to list the small items on your contract as well. While the contractors are working on your property, they are going to require the use of certain facilities. For example, let them know if you are uncomfortable with them using your washroom and telephone. In this case, they'll need to make alternate arrangements.

Watch Your Assets

Keep a copy of the home improvement contract that's been signed by you and the contractor. This document must be filed in a safe place after the project has been completed. Be sure that any guarantees are clearly shown on the contract to provide legal backing if there is a problem with the materials or workmanship. You shouldn't pay more than the minimum guaranteed down payment or pay the remainder of the agreed price until the project has been completely finished and all of the debris has been cleared away.

It's your responsibility to protect your property and your own best interests. Do not sign a home improvement contract that hasn't been completely filled in. Take the time to read the contract in its entirety and ask questions if you are confused by any terms. Your home is your castle, after all, and a home improvement contract should offer all the protection you need.