“Beware of contracts that specify things as ‘per plan,’” cautions Henry Matoza, owner of Matoza Construction in Danville. “Often, the plans aren’t detailed enough—the architect or engineer might leave a lot of the details up to the discretion of the client and contractor. The contract should spell out, in detail, exactly what work is to be performed.” Here are some other tips to remember when dealing with construction project contracts:
• Make sure the contract includes the contractor’s name, address, phone and license number (if applicable).
• A detailed list of project materials should be included in your contract, with information such as size, color, model, brand name and product.
• The contract should include approximate start and completion dates.
• Study the design plans carefully. Approve them and ensure they’re identified in the written contract before any work begins.
• Known as the “Right of Rescission,” federal law requires a contractor to give you written notice of your right to cancel a contract—without penalty—within three business days of signing it, provided it was solicited at a place other than the contractor’s place of business or appropriate trade premises.
• Make sure financial terms are understood and spelled out in the contract. The total price, payment schedule and any cancellation penalties should be clear.
• A warranty covering materials and workmanship for a minimum of one year should be written into the contract. The warranty must be identified as either “full” or “limited.” The name and address of the party who will honor the warranty (contractor, distributor or manufacturer) must be identified. Make sure the time period for the warranty is specified.
• A binding arbitration clause is also a good inclusion in the event of a disagreement. Arbitration may enable you to resolve disputes without costly litigation.
• Thoroughly review the entire contract and be certain you understand it before signing. Consider the scope of the project and make sure all items you’ve requested are included. If you don’t see a specific item in the contract, consider it not included. Never sign an incomplete contract. Always keep a copy of the final document for your records.
