Building or even renovating a home can be a fraught process, and both contractor and homeowner benefit from the protections afforded by a written and detailed contract. Even if the parties trust each other, building a home is so complicated that well-meaning people can simply forget what they agreed upon from one day to the next. Here are things that are necessary for a contract:

First, the Contract Needs to be in Writing

Putting the contract in writing cuts down greatly on the risk of misunderstandings.

The Contractor Must Have a Brick-and-Mortar Address

The contractor needs a real, physical place of work, as is true of contractors like Alair Homes Calgary. Correspondence must arrive at this place and not at a post office box. The place of work as well as the contractor should be easily reachable by telephone, e-mail or text.

Contractor Must be Licensed

During the bidding process, the homeowner should ask to see the contractor’s license. Since in some locales a license is rather too easily obtainable and has little to do with the skill of the contractor, it helps if the contractor belongs to a professional organization. While this isn’t strictly necessary, a license is.

Insurance and Worker’s Compensation

The contractor must have insurance, for if one of their workers is injured on the job, the homeowner can be on the hook for damages. Worker’s Compensation is a must if the contractor has employees.

What Needs to be Done

What exactly needs to be done to build or renovate the house needs to be put in writing and agreed upon by the contractor ad the homeowner before work begins. If the homeowner has conferred with an interior designer, the plans of the designer need to be studied and understood by the contractor and should be part of the final contract.

How Long the Job Will Take

The job will probably take longer than the parties think it will, so a start date and an expected end date should be in the contract. An open-ended work schedule only causes anxiety as well as a ballooning budget.

How Much Everything Will Cost

Experts recommend that this part of the contract be as detailed as possible. The cost should include the cost of nuts, bolts, screws and drawer pulls. Experts also warn homeowners to add about 15 percent over the budget because of the inevitable unforeseen costs.

Schedule of Payment

A general contractor is responsible for paying their workers, and the homeowner is responsible for paying the contractor. The complete payment for the job should not be given all at once, but should be parceled out when certain milestones are met. For example, the contractor can be paid when the foundation slab is laid or when the plumbing is roughed in.

EPA Certifications

Houses that were built before the 1980s sometimes have lead or asbestos in the paint, insulation, tiles or other structures. Unless the contractor is trained in lead and asbestos removal, specialists may need to be called in to remove these dangerous materials.

Even though most contractors are trustworthy, contracts are necessary to make sure that the contractor and homeowner are on the same page. This relieves a great deal of anxiety and makes the renovation or building process go as smoothly as possible.