Items to Be Included in Renovating Contract

Remodeling and home improvement contracts are the subject of this month’s column, which has been reviewed by Bart Doyle, general counsel for the Building Industry Assn. of Southern California.

Some of the items that should be on a remodeling contract include:

--The date of the contract.

--The name, address, telephone number and state license number of the general contractor.

--The name, address and telephone number of the homeowners.

--The name and state contractor registration number of any salesman who solicited or negotiated your contract if other than the general contractor.

--The contract price.

--The amount of the down payment, not to exceed $1,000 or 10% of the contract price, whichever is less, for remodeling and home improvement.

--Schedule of payments and amounts. Amounts must be shown in dollar and cents.

Example:

When concrete slab has been poured: $3,000.

When roofing has been installed: $2,000.

Do not pay more than the cost of work already performed. That is, do not pay your contractor for “roofing installed” when the material has been delivered but not yet installed.

--Time for start and completion of work, such as “work to start within 20 days of this agreement, etc.” and “work shall be completed within 45 working days after start of work.”

--Description of work to be performed in detail to avoid misunderstandings. As an example:

“Contractor will furnish all labor and material to construct and complete in a good workmanship and substantial manner a master bedroom extension as per preliminary plan dated 1/1/90, signed and attached as part of this agreement. Note: Owners to sign final building department approved plans prior to start of construction.”

--Location of project. Some projects may be at a different location from owner’s address.

--Specifications of work (parts to be supplied) in detail as:

1--21-inch-by-32-inch cast iron white 2-compartment sink with 4 holes.

2--Cement shall be Portland Cement conforming to ASTM-C-150.

3--All footings and slabs shall be founded on firm undisturbed natural soil or approved compacted fill.

--Allowances, such as finish floor covering allowance: $950. Electrical surface mount fixtures: $600.

Your contractor should give you a reasonable dollar amount to cover any item that was not thoroughly described as to make, model and brand in the specifications. If you select a less expensive item, the difference will be refunded to you; if you select a more expensive item, you will be charged for the difference.

If your contract calls for a front porch light with a $150 porch fixture allowance, then if you select an electrical fixture that costs $100, you should receive a $50 credit or contract reduction.

--Items not included. This list is as important as what is included.

An example would be:

“The following items are specifically excluded from this agreement and are to be provided by owner: Interior painting, wallpaper, landscaping repair, sprinkler repair.”

--A “Notice To Owner” form as prescribed by the Contractor’s State License Board, referring to the rights of owner and contractor as to lien laws.

--A “3-day right to cancel” form.

--A written warranty.

--Signatures and date of acceptance for both the contractor and the homeowners.

--Terms and conditions. Paragraphs covering subjects such as late charges, attorneys fees, extra work, change orders, rock (underground obstructions) clauses, insurances, work stoppage, etc.

We have touched on some of the major issues to be addressed in a remodeling contract.