What you Need to Know about a General Contract

Having a comprehensive and clear agreement with your contractor is among the most significant factors in a successful renovation or remodeling project. It is the factor that decides whether your project will be a costly headache or one you will be happy with. An agreement will protect you, your property and budget, so be sure to think about the following when negotiating your contract. Read on to learn more about what to keep in mind while you are at it.

Licensing

Confirm that your general contractor (GC) has the licensing that meets your city’s criteria, plus licensing needed to perform specialized work, like plumbing and electrical work. Ask for your agreement to include license information, including license numbers.

Insurance

The contractor’s certificate of insurance is perhaps not attached to your agreement itself, but you can ask them to state their insurance information in it. Discover what the right liability insurance amount is in your place, and confirm that your contractor has the coverage.

Scheduling

Disorganized scheduling is a common source of issues on a remodeling project. Delays because of weather or material availability may be unavoidable, and slight delays are expected, but you should have schedule information in the agreement. It must include the expected date of completion and significant milestones during the course of the project.

Work Scope

Detailing the extent of tasks to be performed will help keep costs and timing-related matters under your control. Depending on the things your project involves, the work information could be long or short. The effort for space addition requiring various subcontractors’ involvement will be more thorough than the extent of tasks required for a much more straightforward work.

No matter what the form of project is, have all the things in written form before it starts. Some of the details can be material specifications, colors and types of finishes, and expectations regarding site maintenance.

Payments

Have a schedule of payment in writing. The schedule will detail when dues should be paid, so it will eliminate potential invoicing hassles. You have to attach payments to some milestones, construction materials’ delivery, or completion percentages. However you decide the schedule, you should not make full payment before the project’s completion.

Warranties

Almost all reputable general contractors in every trade provide a written warranty for tasks done. Before signing an agreement, ensure that your contractor’s warranty details the things that are uncovered and are covered, plus the duration for different coverages.

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