Home improvement projects on the horizon, items to keep in mind when hiring a contractor

August 27, 2020 - Posted by: Zamary Law - In category: Contracts - No responses

With so many of us staying home and taking “stay-cations” this year due to the COVID19 pandemic , many people are finally tackling those home improvements projects they have been putting off.

Below are some things to consider when hiring a contractor and why getting an attorney involved makes sense.

Contractors use their own forms and contracts, Not surprisingly these tend to protect the contractor. Hire an attorney to review any legal document and/or revise it or draft one that protects your interests. Being proactive may save you should there be a dispute later.
Each contract should include a very detailed scope of work with beginning and end dates. There should be an option for termination and the basis for termination.
Sections which should be included in a contract:
1. A choice of law provision. State of residence for which the law applies rather than another state which the contractor’s office may reside. Be sure to have your state’s law as the governing law for the contract.
1. An incentive to complete the job on time by scheduling payments and not paying up front.
1. Final payment should be made only after all work is completed to your satisfaction.
1. Penalties for missed deadlines.
Request names of all sub-contractors and suppliers.
1. Confirm your contractor does not have any outstanding debts or liens with them.
1. Request Lien Wavers from contractors or subcontractors once they have been paid so they cannot file a lien against your house.
1. Place in your contract that no payments will be made without lien waivers.
1. If you wish to avoid lien waivers, you may request to pay contractors and subcontractors directly.
Request contractor to provide proof of insurance.
1. Have an attorney review this for gaps in coverage that may not cover the project.
Request a copy of their licenses and bond paperwork.
Keep copies of invoices, receipts and checks from every payment.
Require all changes be in writing this allows for parties to understand any revisions or changes to the project; countersigned by both you and the contractor avoids surprise unauthorized costs.
Detail all warranties on workmanship and materials.
Request a bid summary.
1. Shows a minimum of three quotes in each category.
1. Make sure the contractor is not receiving kickbacks from subcontractors.
1. Request contractors sign an affidavit to the affect that they are not receiving any compensation for doing business with them.
Detail of permits required and that copies of them are to be provided to you once obtained prior to work commencing.
To avoid going to court, have your attorney add a clause for binding arbitration.

As Benjamin Franklin would advise “an ounce of prevention is worth a pound of cure.”

The Zamary Law Firm, LLC was founded in 2016 by George Zamary with the goal to provide high quality legal services while building long term relationships with clients. The firm assists clients in areas of civil litigation (contracts, employer and employee, business, personal injury, fiduciary, construction, commercial), business/corporate law and estate planning in both the State of Ohio and the Commonwealth of Kentucky. For more information visit www.zamarylaw.com, sign-up for their newsletter or visit their page on Facebook. Zamary Law may be contacted at 513-448-4150.