A Brief Introduction About Renovation Agreement
The renovation contract agreement usually applies to situations in which you plan to renovate or remodel your house. The contract is a written agreement that is used for specifying the particular responsibilities of both the homeowner and the renovation contractor in the given setup. A written contract serves as an integral part of any house renovation project. The house renovation agreement is known to spell out the specific terms & conditions of the contract between the two involved parties – the contractor & the homeowner. The agreement is known to provide essential mediation as well as an enforcement tool in case any problem arises during the entire project.
Who Takes the Renovation Agreement?
The home renovation agreement is typically signed between the homeowner and the renovation contractor. The contract is used to specify the given set of terms & conditions that each party is expected to abide by to ensure the smooth proceedings of the home renovation project. Considered as more rock solid in comparison to a verbal agreement, the removal contract agreement is used to form the working relationship between the renovation contractor & the homeowner.
Purpose of the Renovation Agreement
Whether you are a renovation contractor or a homeowner undertaking a home renovation project, you are expected to draft and sign the sample renovation contract agreement. You should aim at getting involved in a renovation agreement form in case:
- You are the contractor for house renovation and are being hired for the purpose of a house renovation project
- You are a homeowner and are hiring a renovation contractor for remodeling certain aspects of your home
The house renovation agreement should aim at clearly stating the arrangement that the homeowner and the contractor will have about the project.
Contents of the Renovation Agreement
It should be your topmost priority to put everything in detail about the proceedings of the renovation project. This will help in clarifying the expectations of both parties at the beginning of the project itself.
- Description of the Project: The contract should specify the description of the project by specifying proper details, like the amount of work required, materials, and products that will go into the given project.
- How Often & Mode of Payment to the Contractors: The contract should specify the total project price, along with the mode of payment of the contractors as well. Additionally, it should also mention the frequency of payments to the contractors.
- Approximate project dates: Until when the project is estimated to be completed.
How to Draft the Renovation Agreement?
Whether you are the homeowner or the home improvement contractor, it is essential to know the steps necessary to draft the home renovation contract.
- Type the Contract Using a Computer: Instead of writing by hand, type out the contract. Include essential details like the introduction, date of the agreement formation, signatures, and so more.
- Describe the General Renovation Work to be Done: In general, explain the entire renovation project and what it will be covering. For instance, installing new countertops, painting the deck, renovating the kitchen area, and so on.
- Include the Estimated Project Schedule: For every project, specifying the start & end date is crucial. You should also mention the target dates for the overall completion of the crucial phases of the given project.
- Describe the Materials in Detail: The contract also specifies the materials or products that will be utilized in the given renovation project.
[ Also Read: Painting Contract ]
Negotiation Strategy
If you are looking for ways to ensure savings in the given renovation project, here are some expert negotiation tips:
- Shop Around for the Contractor: You should look out for contractors before hiring them. There are several contractors out there who are willing to lower their costs and agree to the given contract terms.
- Purchase the Supplies on Your Own: For ensuring maximum savings on the materials, make sure that you are buying the renovation supplies on your own.
- Offer Payment Alternatives: If the contractor is comfortable with the given prospect, offer to pay the subcontractors directly, rather than paying them through the contractors.
Benefits & Drawbacks of the Renovation Agreement
Some of the potential benefits of the contract are:
- As a homeowner, you can get the desired home renovation as per your terms & conditions
- As a homeowner, you can look forward to ensuring maximum savings
- As a contractor, you can ask the homeowner to abide by your payment terms
- As a contractor, you can ensure that you are being paid the right amount and in a timely manner.
Some of the potential drawbacks of the agreement could be:
- A renovation contract might impose higher risks on the contractor
- Measuring the number of changes can be difficult
- A renovation contract could result in higher costs at a time when unanticipated situations arise.
What Happens in Case of Violation?
While signing the contract, both parties are recommended to take full responsibility for resolving any dispute or violation arising during the home renovation project. In case of a violation or a situation in which a satisfactory conclusion cannot be achieved, both the homeowner as well as the contractor agree to seek a resolution through some neutral arbitrator(1). Some of the common grounds for violations of home renovation contracts are:
- Failure to complete the renovation project within the stipulated time frame
- Failure to make the payments as expected in the contract
Upon violations of the project’s clause, either party might as well terminate the entire project.
It is important to understand the specific terms & conditions of the home renovation contract before signing the same. Whether you are the homeowner or the renovation contractor, make sure that your expectations are fulfilled through the renovation agreement form. Only then should you sign the agreement.