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katrina_tate

Contract for Renovations?

11 years ago
last modified: 11 years ago

We finally selected a contractor after what seems like dozens of interviews and reference checks; however, the contract they sent over is basically a one page word document - 180 words. The company has been in business for 12 years and all reviews were positive and references/license details checked out.

I'm concerned that they don't use a real contract. There are no remedies listed if they fail to complete the job on time. There is no arbitration or mediation clause, merely a statement that they will demo and provide raw materials (sheetrock, lumber, thinset) and labor for the bathroom renovation and we will provide finish materials (sink, faucet, toilet etc). We are in NYC.

I'm not comfortable with the payment schedule, tied to dates rather than completing work, 15% deposit at contract signing, 40% on start date, 35% at half way point of 3 week project, 10% upon completion. There is no termination clause and no guarantee of the work.

Suggestions on how to fix this contract but not scare the contractor away since we want them to do our kitchen as well.

Comments (11)

  • 11 years ago

    No.

    If you want to use these guys , then you should really use their standard procedures. A 12 yr. track record isn't to shabby especially if they have glowing references.

    If their customary practices make you squeamish then they probably aren't good fit for you in the first place. If they are good, they won't really be inclined to change their operation/business practices to suit you. Especially in this market.


    Never hurts to ask though. But, don't be surprised/ put out if they decline or pass on your project either. I'm sure there is someone that can meet your criteria.

  • 11 years ago
    last modified: 11 years ago

    My contract has a bit more details in that it is broken down into line items, such as demolition, waste disposal, electrical (# fixtures added/moved), plumbing (# added/moved), sheetrock repair, vanities, counters, tile installation, glass shower doors, painting, etc.

    No remedies, no arbitration or mediation mentioned. He was supposed to give me a payment schedule but hasn't yet. Came highly recommended by a neighbor.

    He did our master bath last year and is now doing 3 more bathrooms. They took a bit too long for the master bath, so DH complained and he seems to be keeping a tighter schedule this time around. I just write him checks when he asks ... I think I pay for his weekly payroll ... but he always leaves around 25% due till job completion, so it is a fair agreement.

    You need to trust the person you hire. If something doesn't feel right then it might not be the right person/company for the job.


    Edit to add, that I think that paying 55% of the job before they even do anything, is a bit much. We are at week 3 of my 3 bathroom project, with powder room all tiled and tile work starting on second bathroom tomorrow and I just added up my payments ... we are at 30% of total project paid so far.

  • 11 years ago

    Scare him away? By all means. This is a bathroom with tile? To what specifications is he going to build to? The TCNA? (Tile Counsel of North America).

    What happens if the tile job is crappy? What about progress payments, etc, etc. Without a specific contract this guy is running the show.

  • 11 years ago
    last modified: 11 years ago

    One contractor wanted 70% at contract signing. Needless to say we didn't select him. The contracts we've seen range a great deal from formal with detailed scope, payment schedule, permitting fees, warranty details, a cancellation notice and exhibits to very basic. This contract will be revised to add more protections and we will move on if the vendor doesn't agree.

  • 11 years ago

    The time to talk about contracts was at the initial meeting, not now that you've gotten a bid. You just told the contractor that he didn't bid the job high enough. He'll likely decline the job at this point.

  • 11 years ago

    Disagree with Sophie about initial meeting and contract talks.

    No real need to discuss that unless you can agree on personality fit, the scope of work and then pricing. Nothing wrong with it , but it's a little early in my view. If you're the kinda person that wants to talk contracts points extensively at our first meeting then you don't pass my sniff test and we're prob. bot a good fit. Our fee arrangement and general costs are discussed because we don't just expect you to hand us a check and tell us to call you.

    Contracts don't have to be signed as presented to the customer , nor does the contractor have to agree to your revisions . It's simply a formalization of how your relationship is going to work and is all subject to negotiation.

    I'm guessing 99% of you don't have employment contracts. Those that do likely didn't accept the first draft.

    Besides , the situation is going to still going to favor the contractor should things go sideways. And , let's say you're able to negotiate a lopsided contract in your favor and he accepts figures it out late in the game and cuts corners that you may or may not find.

    Where does that leave you? Much of this business is simply a leap of faith no matter the quality of the contractor and contract, and it's a two way street. Can you pay and on time ? Or, are you beholden to a bank or insurance co. that holds the purse strings?

    We're involved in one currently that has dragged on three years because the ins. co. won't disburse funds unless progress is shown and we don't progress unless paid costs - so round and round it goes til small chunks of money can be liquified. And we aren't even the GC, I'd hate to see his receivables.

  • 11 years ago
    last modified: 11 years ago

    xedos Been there, done that with a project taking years to complete. That ended up in court (we won).

    Yes, everything is negotiable. I've never accepted a first offer, for anything, and certainly never signed a contract as initially presented.

    Discussing a contract at the first meeting with a GC isn't normal for a simple residential bathroom renovation. First I need to see if I like you, if I want you in my house for 3 - 4 weeks and if your references check out since I have already seen your work before contacting you. More often than not a final price isn't even discussed at the first meeting, but maybe a general estimate. This has been the case with 95% of the contractors we've met. Only 2 gave a price at the site meeting. The others sent pricing in a formal proposal.

  • 11 years ago

    The GC agreed to 99% of my changes. We are in business.

  • 11 years ago
    last modified: 11 years ago

    Xedos: "We're involved in one currently that has dragged on three years because
    the ins. co. won't disburse funds unless progress is shown"


    Its common place that you need to hit your outlined progress before funds will be disbursed, so id suggest maybe get back to this jobsite and wrap up your'e work, when you complete a portion and lien waivers are signed the purse should release the funds.

    3 hrs, 3 days on a big job 3 months even, but 3 yrs???? wow thats a big underestimation of a job, but then youre not a general contractor so id say its ok just maybe not 3 yrs..

  • 11 years ago

    Katrina, glad the negotiations worked out. Good luck with the project! Our is creeping along slowly and we have 3 bathrooms at the tiling stage.