Writing the Contract

Once you've chosen a bid, negotiate a contract. It should have the important elements listed below:

• Itemize in detail all work to be done. Specify the type and brand of materials and finishes to be used. Include a specific timetable. You may want to work in a penalty for late completion, or a reward for early completion.
• A fixed-price contract should specify the total cost of the job. A cost-plus contract should specify the cost of materials and labor. Payments should be dependent on work completed.
• Include a right of rescission, permitting you to rescind, or back out of, a contract within 72 hours of signing it.
• A certificate of insurance guarantees that the contractor is covered. Include in the contract a warranty ensuring that the labor and materials are free from defects for at least a year.
• An arbitration clause delineates the method for resolving disputes.
• A release of liens clause ensures that you wont be responsible for liens filed against the contractor by suppliers or subcontractors.