When you decide to undertake a home renovation, no matter the size, a contract is for your protection. However, a contract is only worth what you able to spend in attorney fees to defend it in court.  Without a contract in place, if something goes wrong during the execution of your project, you don’t stand a chance.  What happens if your contractor decides to close the company, only to reopen the next day with zero assets to go after and a new business name?  Unfortunately, cases like these have happened and will continue, so you must be sure your contract is detailed, specific, and enforceable.   

The Contract

A consistent practice of providing a detailed contract is your first clue that the contractor is professional.  If you’ve talked to a contractor and they want to give you a verbal agreement, or start work before the specifics have been agreed upon in writing by both parties, RUN.  Not only are you opening yourself and your family up to potential financial disaster, should something go wrong, your property insurance will most likely be null and void in the event of a problem.   

Learn About Your Contractor

Drafting a contract is just the beginning of your renovation project. When you’re ironing out the details, you’ll discover if this contractor is easy to work with, transparent, and honest.  If you find the contractor to be dodgy or difficult to work with before a single hammer has been lifted, what might be at risk once demolition is underway and they have your hard earned money? 

Review With Your Attorney

Be sure to have your attorney review and approved any legal document before agree or sign anything. Think about this – it may cost you a few hundred dollars to have an attorney review your contract, but if you’re set to lose tens of thousands in the event that the contract is not enforceable, it’s well worth the initial cost.  

Insurance

Even if you have full confidence in your contractor, and they have hundreds of testimonials from happy customers, a contract is still a must.  This should go without saying, but ask for proof of insurance before you even begin to think about a contract. A few other must-have details you’ll need in a contract are: 

• The contractor’s business number (BN) – this 9-digit number should be verified with the government that it belongs to the named contractor. 
• A traceable payment plan or agreement with a verifiable money trail.  Never pay cash “under the table”.  Even if you will be providing an upfront down payment, or decide to pay all at once, use a credit card, cheque, or e-cheque that can be disputed and/or reimbursed if the contract is broken. 
• Be sure your contractor knows how to obtain all necessary permits and agrees to do so before work is done. 
• Require the contractor to be up on the latest building codes and agrees to complete all work accordingly. 

Alair Homes London is committed to providing ironclad contracts before we start working on each and every project to ensure your peace of mind.  For more information on how we protect you from unforeseen issues, check out this video. 

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