Advantages of a Remodeling Contract Template
Having a remodeling contract template can be beneficial for both remodelers and homeowners. For remodelers, they can ensure they have all the necessary legal protections and provisions to protect their businesses. On the other hand, a homeowner can ensure that there is a clear and concise understanding of the scope of work to be completed.
A remodeling contract template can be something quick to get established, but in the long run, it tends to save a lot of time for remodelers and homeowners . With a remodeling contract template, the homeowner gets an understanding of all the work being completed and typically this is in writing. Additionally, the homeowner gets the legal protection of what was written in the remodeling contract template in case of a dispute. The remodeler also receives legal protection for any damages to his or her business if the homeowner decides to not follow the remodeler’s directions.
Essential Components of a Remodeling Contract
The remodeling contract should begin with identifying the parties. The remodeler should clearly state its name and the status of its business as either a sole proprietorship, corporation, limited liability company, etc. If applicable, the license information should be listed for the remodeler in accordance with state law. The contract should specify the location of the work. The remodeling contract should include the property address. If the work is performed at a different location the remodeler should have clear language that states where this work will take place. Generic language such as: "work to be performed at a location to be determined by remodeler" should be avoided. It is important to have the right to choose the job site but the remodeler should not have the ability to change it at its option without consulting with the customer.
The scope of work is another key component that should be in the contract. The scope of work is very often a detailed portion of the contract. For the remodel or renovation of an existing space, the scope of work will be used to specify how the remodeler will perform its tasks. A room addition would have separate scope of work from a bathroom remodel. The contract should also contain the payment terms. Any remodeler should show the customer how the money will be paid. Having payment milestones can be both beneficial for the remodeler and the customer. A remodeler should have small payments scheduled to make sure the remodeler receives some funds for the work that is completed. Having key milestones will also allow a customer to feel comfortable with making significant payments to a remodeler for the work performed. The contract should also have a general schedule. Many customers want to know how long the project will take. As the remodeler works, if the project goes quickly this makes the remodeler look good. If the project takes longer but could be completed in a reasonable time, the remodeler will still look good from the customers’ perspective if they are kept informed. From the remodelers’ perspective, having an approximate time frame allows it to plan for labor.
How to Tailor a Free Word Remodeling Contract Template
The most efficient way to customize a free remodeling contract template is to open it in Microsoft Word and amend it to suit your particular remodeling project, such as, for example, a kitchen remodel, bathroom remodel, basement renovation, home addition, or any other type of remodeling or renovation project that you might be involved with.
In order to do that, upon downloading a free Word remodeling contract template, open the document in Microsoft Word, and make changes to the text and language of the contract template in accordance with your particular remodeling project.
Go through the entire document and either make changes to the text of the contract template, or delete sections that are not applicable to your project. It is important to not delete any of the sections that you will be using and that are appropriate for your own project, but rather, leave those portions of the contract template intact.
Once you have fully gone through the entire Word remodeling contract template, go back through the entire document once more to double check your changes and ensure that the contract adjusts appropriately to fit your particular remodeling project. Make any further changes to the template as necessary, or add any additional language that you think might be necessary or appropriate to customize the contract template to your specific needs.
When you have finished amending the contract template to your liking, save the document. It is now ready to be used, and the entire process of customizing and amending the contract template in Word format is now complete.
Where to Locate Trustworthy Free Remodeling Contracts
Professional remodelers and contractors often seek free remodeling contract templates in Word format. This allows them to have a template they can easily modify for every job instead of spending an excessive amount of time creating a contract each time.
The first option I would suggest is simply to search for "remodeling contract templates" and wade through the results. But unfortunately, it turns out the top search results are filled with broken links. So I decided to find some alternatives for you:
WordTemplates.org-Templates.R.us
This site has eight contract templates easily downloadable and editable in Microsoft Word format. For most Word document contract templates these days, you don’t even need to supply your email address just to download the templates.
TemplateLab
This site also has eight contract templates to download and customize.
Contractssample.net
Unlike TemplateLab & WordTemplates.org, this site only has three contract templates available so far. However, it includes construction contracts as well as general service contracts for various service jobs .
PathDoc
Another site with eight contract templates, but unfortunately the only one I found for residential remodeling contracts was "Home Renovation Contract." But at least it’s downloadable in Word format.
SBA
Yes, I know the U.S. Small Business Administration did not make a site specifically for contract templates or remodeling contracts. But if you’re looking for a simple, straightforward, residential remodeling contract, and you don’t mind using a general service contract, check out theirs.
After searching around a little longer, I also came across a couple other sites that came up in my original search results that looked like complete garbage. They were clearly generic contract templates that would not work for an overhaul remodel as I am looking for, but some may be fine for general service work. That said, if the contract template only costs $6.90 or $8.00, it’s probably worth trying one out if you don’t like any of the free ones available.
Also remember that you can always modify a general service contract template to reflect your remodeling business, so long as you make sure it complies with all the licensing, bonding and insurance requirements in your and the job’s jurisdiction.
Pitfalls to Avoid When Using a Remodeling Contract
Homeowners and contractors often make the following mistakes when using remodeling contracts: and these errors can create huge problems down the road that may result in litigation.
And now some specific examples of common mistakes that can lead to complicated cases and potential litigation:
Often times, you aren’t sure what you want when you start the remodeling process. Oops! In the eyes of a judge or jury, you have left open a very important property right. A judge or jury may decide that, in your particular case, you weren’t specific enough about what you wanted and it’s the contractor’s responsibility to enforce your objective. This could leave a general contractor with a huge loss on a project to which you agreed and with which he has no recourse.
It is very important to note that if you haven’t signed anything, you haven’t bound anyone to anything.
Some time has passed or parties have become very mad at each other. One side then decides to cut and paste clauses from completely different agreements (with completely different types of work) into another agreement. This type of editing is how a really, really bad remodel decision is sometimes made. What you need to remember is that this type of editing is terrible because it can change the meaning of the contract and leave it very confusing.
Also, many remodeling contracts are two sides of the same document. A person will flip the paper over and type a sentence or two onto the other side, where it’s not seen by somebody on the other side. Even though you may be best of friends now, if you’re going to be doing a remodel, get a remodel contract, or discuss it, or even do any work, get the contract in writing.
Legal Aspects of Remodeling Contracts
When it comes to remodeling contracts, there are a multitude of legal considerations for both remodelers and their clients to be aware of to ensure the contract is legally binding and enforceable. It is important to be aware that state law provides different legal requirements for home and remodeling contracts. Using the correct contract and information is critical for all remodelers. It has always been important to have legal advice when drafting agreements or contracts and remodelers should consult with an experienced construction lawyer if you have any questions about your contract or are about to enter into a remodeling contract.
As remodelers you need to be concerned with and compliant with local laws and codes. For example, California Civil Code § 7159 (Home Improvement Contracts) and § 8000 (Residential Home Construction Contracts) provide specific requirements for home improvement and residential construction contracts . The Home Contracts and Business Contracts contain very detailed specific requirements for both remodelers and homeowners concerning the contract and work. Sections of the Home Contracts that are particularly important are the required Notice or right to cancel, mediation and arbitration sections. Modifying these sections in anyway from the Court’s approved contract, even if the intent is still the same, can create many major problems. As we have discussed in previous posts, you can recover your attorneys fees as outlined in the contract, however if you do not have the correct or right type of contract you may not be entitled to recover your attorneys fees. Therefore, it is very important to consult and work with an experienced construction lawyer for your remodeling contracts to ensure you receive the protections you need.