Two people shake hands over a building contract.

Individuals looking to renovate their homes typically reach out to a number of professionals for estimates before choosing a contractor. Once that decision has been made, it’s customary to sign a contract to ensure all parties are protected during and after the work.

A renovation contract outlines the details of a remodeling job. The construction company or the general contractor will create this legal document, which will list the steps of the job and how issues will be resolved should problems arise. Prior to signing a contract, however, homeowners should engage in a conversation with the contractor and ask key questions.

• How long have you been in business? Verify the information that the contractor and/or company provides by doing a search with the Better Business Bureau and perusing online reviews to confirm the company is dependable.

• Are you independently owned? Some companies are independently owned businesses while others are franchises. Franchised businesses may have to follow a strict set of rules, while independent contractors may have more leeway in terms of policies.

• What is your licence number? Obtain the licensure information as well as the contractor’s insurance details. A contractor’s general liability insurance protects your home and property in the event of an accident.

• Are you familiar with local building codes? Check to see if the contractor has worked in the area before, and if he or she is familiar with the permit process. Make sure a contract documents who will be securing the permits.

• How will the project be supervised? Some contractors sub-contract out the work and may only stop by to check on progress. Understand how often those drop-ins will take place, and how to get in touch with the person in charge should a problem arise.

• Is there a warranty? Certain contractors will stand behind their work for a period of time, even coming to make repairs if there are any issues. Check to see if a warranty policy is in place.

• What is the policy for home protection and clean-up? You’ll want to ensure the rest of your home doesn’t become damaged or soiled due to the construction. Have the contractor spell out plans for mitigating mess during demolition, and whether the construction company will be responsible for removing the debris.

• What is the final price? One of the more important questions to ask is if the price stated on the contract will be the final price, or should incidentals be expected if issues are unearthed during construction? Some contractors may need to tack on charges for extra materials, and that can stretch homeowners’ budgets.

It’s important to touch base with the contractor and ask key questions about the project, which will be reflected on the contract both parties eventually sign.

According to LegalMatch.com, a contract is an agreement between two parties that creates a mutual legal obligation. Oral contracts are possible, but written contracts are preferred for a number of reasons.

Any time a person sets out to do a home improvement project that involves the use of contractors and other professionals, he or she should have a contract drawn up. A contract can ensure that the work will get done safely, within a given time frame and according to specifications. A contract should contain certain seven details.

1. A defined scope of work: Here is where the scope of the job should be spelled out in detail. This portion should include the materials being used, what the homeowner has requested, special details, and who will take care of each facet of the job. For example, if the homeowner will be providing the materials, it should be noted here.

2. Procedure for changes: To be comprehensive, renovation contracts should note the process that will be followed for any alterations or additions to the project.

3. Floor plans: In some instances, the contract will include floor plans, architectural drawings and other details.

4. Indemnity clause: The contract should include a clause that indemnifies the property owner against legal liability should any damages or injuries take place on the property.

5. Work schedule: The contract also should include a work schedule that identifies the requested start time and estimated end time for the project. Parties should understand that inclement weather or other delays could affect the schedule.

6. Cost: The contract should reference the agreed upon bid price, highlighting the agreements for procedures if additional materials are needed or if the job runs long

7. Warranty: If a warranty is being offered, the details should be included in the contract. Homeowners should expect a reasonable one-year warranty to cover any defects in the contractor’s work.

Renovation contracts are essential any time there is an agreement between homeowner and contractor. Good contracts will include various components.