Top Ten Clauses to Have in Your Contract-The Contractor
By Andrea Goldman, Esq.
As a post for starting off the new year, I have been thinking about the most important clauses to have in home contractor contracts. So, in an attempt to add to the top ten lists that are generated at this time of year, here is my list for contractors:
1. ALL CHANGE ORDERS MUST BE IN WRITING AND INITIALED BY BOTH THE HOMEOWNER AND THE CONTRACTOR! Should I say it again?
2. The contract should clearly spell out the price for the job along with a clear cut payment schedule.
3. The contractor should list reasonable start dates and end dates for the project with exceptions for delays caused by unforseen circumstances or homeowner delay.
4. The contractor should include a provision that will allow him or her to collect attorney's fees if he has to pursue payment from the homeowner.
5. There should be a complete description of the scope of the work and the materials to be used.
6. The contractor should ask the homeowner to designate who the decision makers are and make that person's cell phone number and/or e-mail address available to the contractor.
7. The contractor should include a clause about what constitutes breach of the contract and what the remedy will be if the homeowner breaches.
8. Warranties should be clearly spelled out and include the items that are not covered as well as covered items.
9. The contractor should decide whether he wants to include a mediation and/or arbitration clause in the contract.
10. And finally, the contract should include a detailed description of what constitutes punch list items and how to determine when the punch list is complete in order for final payment to be made.
I am sure there are more, but these are what come to mind for how contractors can best protect themselves. Tomorrow I will list my top ten from the homeowner's side.
“Pay When Paid” vs. “Pay If Paid” Clauses: Mystery vs. Myth A "Pay When Paid" clause provides that payment to the Subcontractor will be made within a certain period of time after the contractor has been paid by the owner, rather than within a period of time after the subcontractor has performed its work...
Design Contract’s Enforceability of Limitation of Liability Provisions Designers often seek to minimize their legal liability on a project by negotiating limitation of liability (LOL) clauses in their professional contracts. An LOL clause in a design contract seeks to cap a design professional's liability for professional negligence at some specified dollar amount, often the amount of the designer's fee...
Great New Article on Morals Clauses I've always found morals clauses in player and endorsement contracts to be interesting. Morals clauses give the employing team/company the right to suspend or terminate a contract with a player who engages in "immoral" conduct...
Libertarians Supporting More Governmental Regulation This post at Kipesquire provides a remarkable example of bribery that can never be proven in a court of law. Here's the summary: The government entered into a contract with a contractor that would cause the government to lose money...