Print this pageBefore Signing a Contract
What all home owners should know before they sign any contract for remodeling work, or before signing a contract to build a new home
The home owner should contact several contractors to get quotes for their project. In my 30 years of experience, I have determined that about 75% of the contracts we get are because I was the only contractor who showed up to check out the job. I was always on time and if I was unable to make the scheduled time, I would call the client and tell them why I was going to be late or have to re-schedule the appointment. That still allowed me to get the project.
Home owners should never use the lowest price as the deciding factor in selecting a contractor. Price alone is the worst choice for choosing a contractor.
When you contact a contractor, either by e-mail or over the phone, you should ask if the contactor can supply references, bank contacts and licenses. Licenses should be for contractors’ license and business license, for both the state and city, if the job is in the city limits. He should supply Worker’s Compensation information and general liability insurance information.
None of the above mentioned items needs to be supplied on the first visit. However, when the contractor supplies a proposal for the work, all of these items should be attached to the proposal.
In most states there is a law that requires all contracts signed in the home to have a “right to cancel” provision. This is a separate document that is filled out by the contactor and left with the client and this is only done if the client accepts the contractor’s proposal. This gives the client up to 3 days to change their minds and terminate the transaction. However, if the client changes their mind and does not execute the right to cancel document, the client can be held liable for any expenses the contractor has incurred at that point.
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