Anatomy of a Renovation Contract

Good morning, everybody,

It has been a short while since we last posted on our blog. It has been a rather busy time, even in the middle of a pandemic and a wilder than an imaginable post-election season.

Today, I want to go over with you, how contracts are done in the construction and remodeling contractor industries.

This is to help you understand how everything on our contracts is set and laid out.

The Contract: Why Do we need one?

With ANYTHING outside of going to a retail establishment, you have to deal with contracts. Rather an employment contract, a services contract for your mortgage, your car and even mobile phone. In construction, it is no different.

Contracts exist to not only protect us, the construction business, but also the client. What contracts do, is legally state The services involved, The costs involved, the steps involved in procuring, performing and completing said acts of work for the consumer or client.

In the case of any breach of contract, or if either side (the contractor or client) does not hold up to either end of the terms, it will protect those who are affected by the negative effects of non-action.

So, without further adieu, let’s break down the contract that our company, VRC Management LLC uses:

The first part of the contract, states the services contractor and the customer/client that the company is working with.

  1. States in a summary the scope of the project. In this case, our company is remodeling a Kitchen and Bathroom and the major deliverables of said project.
  2. Section 2 discloses the Contractor’s policy towards any changes in the scope of the project.
  3. Establishes the timelines for services rendered in the contract.

4. Establishes the costs involved in the renovation project and the various milestones and required payments upon each one.

5. Discloses representation of the Contractor and the Customer in said contract in full length.

6. States that contractor is insured and will provide proof upon request.

7. Describes any events that are caused by any force besides the contractor and customer and who is responsible and what is and not considered a breach of contract.

8. Liability statement that states that the customer is not held liable for any injuries of the contract, staff, agents, etc.

9. States that the Contractor or the customer cannot alter or perform in any deviation outside the terms of the contract and that changes would have to be in agreement of both parties, the contractor and customer.

10. States that this is a legally binding contract.

11. In case of any legal situations arising from the actions performed or not performed on contract, that all matters will be served in the jurisdiction of the state of the property’s location.

And of course, signature and date from both Contractor and Customer to show that both parties have acknowledged the terms of the agreement and decide to proceed per said terms.

If you would love to know more about contracts or just want to speak with a contractor to understand our business, give Jozef a call at 312 320 3838. Also, if you are looking for a great remodeling contractor, with fair prices, a great work ethic and turn your dreams and ideas into reality, give Jozef a call today!



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