Renovation Contracts 101:Paperwork Checklist Before You Construct
January 31, 2018
So you have the design down, your inspiration boards finalized, and your blueprints signed. You’re ready to renovate your condo or house but before you get started on building your project, make sure you and your contractor has the paperwork covered. Renovation contracts are a must when overhauling a space. They detail everything from what has to be changes, how much it is to be changes for, and until when it will be changed. Hereare 6 Renovation Contracts that you need to know about before you start your renovation!
1 Construction Contract
This is the legal document that specifies point-by-point the details of the construction project. A good construction contract should include the following:
– Contractor’s registration number
– Statement of work quality (‘Standard Practices of the Trades’)
– A set of blueprints or plans
– A fixed price, timetable, and materials formula for the work to be done
– A payment schedule
– A clause outlining how any disputes will be resolved
– A written warranty
2 Construction Bond
This is a surety bond that homeowners hold as protection against disruptions or financial loss due to a contractor’s failure to complete the project or meet contract specifications.
3 Contractors’ All Risks (CAR or CARI)
Always ask your contractor for this particular insurance policy, this provides coverage for both damage to a property and a third-party injury or damage claims.
4 Change order
Think of this as a contract amendment done in mutual consensus between owner and contractor. It usually involves any changes in work, pricing, schedules, and other terms stipulated in the original contract.
This is a percentage amount worth 5 -10% of the amount due to the contractor on an interim certificate. This amount is deducted from the total amount due and retained by the client to ensure that the contractor will properly complete the requirements and deliverables included in the contract.
6 Punch list
Towards the end of the construction, the contractor will prepare this document, which lists work that has yet to be completed prior to the final payment. This serves as a checklist of still unfinished work, incorrect installations, or incidental damage to existing finishes, materials, and structures.