Arizona homeowners in need of a remodel, repair or addition will likely require the services of a handyman or general contractor. Before beginning the project, a reputable contractor will have a contract for the customer to review and sign.
This contract should outline the details of the work to be performed, payment schedule and work schedule, among other legalities. Read on to find out what contractors should include and what customers should be looking for to avoid a costly contract dispute.
Contracts for builders should include 10 key elements. For most parties, the price is the most important part of the project. Contractors want to earn enough to pay for employees, taxes and other expenses with some money left over to pay themselves for their time and work.
At the same time, homeowners generally want to pay as little as possible, so there will often be negotiation over the final price. Once the price is determined, the contract should detail the payment method. Is it a lump sum, installment or other schedule?
A contract should also include time frames, material terms and what would be happen if any disagreements were to arise. There should be a solution – such as mediation, arbitration or litigation – outlined in the contract as well.
Disputes can occur during the course of a project – even if the parties have a close relationship. It’s advisable to have a contract that outlines the legal remedies available to either party to settle a disagreement. It’s important that the contract is not one-sided, but rather benefits both parties.
Source: FindLaw, “Ten Things to Think About Before Signing a Construction Contract” accessed Mar. 28, 2015
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