Ideally, these are the elements and general points that should be in any contract.

1) The parties entering into an agreement. The legal property owner and the person or representative of the legal entity doing the work.

2) A scope of work statement. Which is a description of the work to be done, in as much detail as possible. Make reference in the contract to drawings and specifications as applicable. If you, the homeowner, or another entity are doing part of the work (such as site preparation), spell it out. Spell out all materials, appliances, fixtures, model numbers, etc. to be provided.

3) How will changes in the scope of work be handled? Some changes are inevitable. How are new charges to be billed?

4) Price and payment schedule. What the total cost will be, and when you are going to make payments. What will be the percentage of work completed before a percent of the total cost is paid? And how will that percent of completed work be measured? You might pay 25% down, and another 25% at the halfway point, another 25% at the ¾ point, and then the balance after completion. There are many payment options. Don’t make final payment until you are satisfied. Or at the least, hold back 10% until all corrections are made.

5) Are there important dates and project milestones to be noted in writing? What is the start date? The completion date? What will be done if there are delays? Are there penalties if work isn’t done on schedule?

6) Specify who will obtain and pay for city building permits?

7) Specify the Board’s insurance requirements and that the contractor will meet them. Contractor usually must have personal injury, property and worker’s compensation insurance. The contractor usually has to be approved by the Board before he or she is allowed in the door. So the contract is contingent on that approval.

8) Is there a time period in which the contractor will fix problems that appear after work is completed? Are there warranties?

9) Can you spell out a mechanism for dispute resolution to ward off a worst-case scenario (litigation)?

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