contractors contract

First, check with the better business bureau and make sure that there are no complaints against this contractor. Make sure he gives you references and you check them thoroughly. Make sure you do not get too far ahead in paying him and that when he says he is paying someone, they actually got paid. Make sure you iron out how change orders will be handled and what it will cost you. How long is his work guaranteed for? Put everything in writing. I learned the hard way that the contract that they give you protects them, not you. Make sure you know exactly what you are getting and when. Quality standards can be very different. If they get your deposit and go out of business, there is very little you can do, unfortunately. These are tough times indeed.

Biggest thing to IMO is to make sure there are appropriate milestone payments. Translation - GC gets paid at different intervals based upon their progress.

X amount at signing, Y amount after completion of rough work (framing, plumbing etc., Z amount at substantial completion and down to something like 10% when you get to the punchlist. I think my contract had four or five different installments defined.

This way if your contractor disappears after they have completed only 50% of the job theoretically you have only paid for that amount of work. If your GC skips town you are always screwed but this is designed to mitigate the financial loss and incentivise them to stay on through completion.

Contract should reference the amount of insurance coverage they have and the fact they will name you and the building as an additionally insured party. They should also verify they have worker's comp insurance. Your building's alteration agreement probably calls for a specific amount.

Like the previous poster made mention of --get everything in writing.

Take advantage of the fact that GC's are struggling for work and be explicit and demanding about what you want and expect.

Critical that a contract directly reference a specified set of drawings as being included. EVERYTHING in those drawings is to be incorporated into the contract price. This assumes you are investing in proper architectural drawings that specify every last detail and fitting. Detailed drawings make for a happier job with fewer disputes and change orders. About 8 payments will be sufficiently incremental for a 4 month job.

If you do not take this advice, your job will run way over budget--I promise. WAY over. And when it is over you will find you possess the capacity to hate a human being (your GC) more deeply than you ever knew you could.

So true, Kylewest. So true.

this is what I recieved - seems pretty vague - appreciate your help

THIS AGREEMENT made this Friday January 14 2010, by and between
________, hereinafter called the Contractor, and
__________, hereinafter called the Owner.

WITNESSETH, that the Contractor and the Owner for the consideration named herein agree as follows:

ARTICLE 1. SCOPE OF THE WORK

The Contractor will render all labor for the project described in the attached estimate. Unless otherwise indicated in estimate, all the material will be provided by the Owner as it pertains to work to be performed on property located at:

ARTICLE 2. TIME OF COMPLETION

The work to be performed under this Contract shall be commenced on or before, February 19, and shall be substantially completed on or before May 31 2010. Time is of the essence.

ARTICLE 3. THE CONTRACT PRICE

The owner shall pay the Contractor for the labor to be performed under the Contract the sum of Dollars, subject to additions and deductions pursuant to authorized change orders.

ARTICLE 4. PROGRESS PAYMENTS

Payments of the Contract price shall be paid in the manner following: 30% of contracted price at commencement of work then 2 payments of 30% and 10% upon completion of final work.

ARTICLE 5. GENERAL PROVISIONS

1. All work shall be completed in a workmanship like manner and in compliance with all building codes and other applicable laws.

2. To the extent required by law, all work shall be performed by individuals authorized to perform said work.

3. Contractor shall furnish Owner appropriate releases or waivers of lien for all work performed or materials provided at the time the next periodic payment shall be due.

4. All change orders shall be in writing and signed by both Owner and Contractor.

5. Contractor warrants it is adequately insured under all applicable cities, county and state laws and adequately insured to itself and is employees and other incurring loss or injury as a result of the acts of contractor or is employees.

6. Contractor agrees to remove all debris and leave the premises in broom clean condition.

7. In the event Owner shall fail to pay any periodic or installment payment due hereunder, Contractor may cease work without breach pending payment or resolution of any dispute.

8. All disputes arising in connection with this contract, the parties hereby consent to good faith mediation in accordance with the American Arbitration Association. In the event that mediation fails to resolve the dispute, the parties consent to binding arbitration in accordance with the rules of the American Arbitration Association.

9. Contractor shall not be liable for any delay due to circumstances beyond its control including strikes, casualty or general unavailability of materials.

10. Contractor warrants all work for a period of six months following completion.

ARTICLE 6. OTHER TERMS
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________

Signed this day of , 20 .

______________________________ ______________________________ Contractor name Signature

______________________________ ______________________________ Owner name Signature

Be careful if he's using subcontractors. Make that if you pay the contractor and he fails to pay the subcontractors, that you aren't on the hook to the subcontractors.

Yeah, that contact is very vague. Look at the AIA's owner-contractor agreements. They're relatively short and sweet and will cover you pretty well.

While Kylewest said is critical. The payment schedule needs to have milestones attached. You also will want to clarify what the GC means by "final work" and if that means all punchlist items. ~5% of the contact amount should be held until all punch-list items are completed. Also the contract needs to reference all the drawing numbers and their date. Otherwise I guarantee you'll hear "that wasn't included in my written estimate, I'll give you a change order."

I am licensed NYC contractor. There are few items missing from that sample posted(The list below is just off the top of my head):

1. His HIC license number
1.5 Specific scope of work, what will be completed, and cost attached to each item, with both labor and materials as separate line items
2. Notice of cancellation - You have 3 business days to rescind the contract once it is signed at no penalty to you
3. Proof of workers comp insurance
4. Proof of liability insurance
5. Any subcontractors that will be involved in the project need to submit all of the above as well

The place to obtain a "standard" HIC contract is the Department of Consumer Affairs. All contractors are licensed through this agency. The website has sample contracts and other information posted. Electricians and Plumbers are licensed through the Department of Buildings and have separated guidelines. Please remember that the BBB cannot help you in any way unless the contractor is a registered BBB member.

Hi,
This is the long version of what Kyle West said, have a detailed agreement.

I agree that the proposed contract seems incredibly vague which can only lead to misunderstandings when things are not clear. I have copied the most important parts of my contract below (still 6 pages however it was 27 pages in its entirety). Yes it took me 2 weeks to write off and on, however the most valuable 2 weeks I could have spent. Not only did I get exactly what I wanted by really thinking about the specs it also came in exactly on budget because there was no additions that I had forgotten, plus it also came in on time because the contractors knew exactly what they had to do and the penalties could have helped, plus there was a clause for bonus for finishing on time.

This agreement, made on the…………. shall set forth the whole agreement, in it’s entirety, between Contractor and Homeowner.
Contractor;…………
Contractor’s company ………………….
Contractors address; ………………..
Contractors Phone numbers ………. cell
Contractors License;……………….
Contractors Liability Insurance;…………….
Contractors Workers Compensation Insurance.............( Plus any other subs on the job)
Owner; ………………., referred to herein as Homeowner.
Homeowners company;………………….
Homeowners phone numbers; …………….. cell ………………
Job Name; ……….. residence.
Job Location: …………………………………………….
The Homeowner and Contractor agree to the following:

GOAL
Is to have a smooth, enjoyable well planned and executed experience. Where we work together to find creative and practical solutions for the challenges that will come up so we get our goal of creating a beautiful crafted home on budget. Thank you for providing yourself and your team for this.

QUALITY OF WORK
The quality of the work is to be gauged by the test of would the contractor be proud to show the work to new clients and say this represents me and or would he be satisfied if a contractor did it in his home.

I would also be very happy to have any of your future clients see your work in the apartment and or for you to have copies of the professional photo’s I will have taken of the apartment for your work completed book.

SCOPE OF WORK
Contractor shall perform all work as described below and to provide all building/construction materials. Owner to provide all the other fixtures as addressed in the “materials” section.
All work is to be completed by the contractor in accordance with the plans that were emailed and specifications. Said attached plans have been acknowledged and signed by the Homeowner and Contractor.

An outline of the work is as follows, this work is only part of the work, and all work referenced in the attached plans and specifications will be completed to the Homeowner’s satisfaction.

The following is an outline of the overall work to be performed. Please see more detail at the end of the contract.

DEMOLITION
[Below are some specific details to my job to give as an example]
In 2 parts (as per attached architectural plans, with existing notations)
Important to find all extra areas of space.(then drywall over anything we expose)
Important to work together with the other trades, ie the plumber will mark where he needs trenches.
2 parts divided by plastic framed.
Temporary kitchen, to be removed at the end of the job, I appreciate this.
To protect the floors as much as is reasonably possible, as they are staying.
To protect my bath tubs
Aim to get the fireplace out in one piece.
Please be careful of the door way entrance with the new wallpaper.

BUILD OUT
According to the attached diagram, some specific notes below.

We all know it is a pre war building where there probably isn’t a totally straight line and yet the build out has to look good, so included in the installation quote is solutions and preparation to get the good results.
Fixing any areas with drywall or the appropriate material where demo has occurred.
[ I have taken out most of my specific details, however left a few for examples to show that it needs to be really clear so there are no misunderstandings or expensive change of orders for things that were forgotten]

DOORS
Install and hang 5 new pre hung doors (Provided by me, 8ft tall, varying widths)
Install, trim (to fit) and hang 3 pairs of old heavy doors (The ones shown on the walk thru, with 2 pairs being wood and one being metal), so that they open and close smoothly.
To include new door frame and casing around both sides of the 3 old doors.
The 3 pairs of doors are to be set into an inset to create an alcove as shown in plans
All Hardware to be provided by homeowner and installed by the contractor (handles, hinges, any cremone bolt’s, locks etc)

THICK ARCH WAYS
As shown on drawing in red.

BUILT IN CUPBOARDS
All trim/casing/ hardware/hinges/mirror/rods/ cedar and mahogany wood provided by owner to be installed by contractor and provided by the owner.

[I am aware that a lot of contractors would provide these building materials however I am quite specific in my taste and wanted to select myself, ie how thick the mahogany or how wide the bevel on the mirror]

Master Bedroom, 4 existing mirror/curved doors, built into the alcove at the end of the room.
- 2 shelves at the top, plus 2 rods to be installed.
- Back wall lined with cedar ( provided by homeowner for all appropriate cupboards ie clothes)

1. Master Bedroom, 1 door built into part alcove (as per drawing)
- 27 In door to fit existing shelving that I have.
- Concealed door hardware provided by Homeowner,

2. Bedroom 2, 2 doors set into alcove corner, one side to form the edge for the double doors into the room.
- (Possible 56 Inches across, so possibly 2, 22 Inch doors set into 6 Inch casing each side, however wait for the demo to see if I can get bigger).

Bedroom 4, 3 door’s set into the alcove corner of the bedroom.
- 2 shelves
- Poles installed
- If we use existing doors they have to be raised (approx 10 In) from 87.5 In to meet the ceiling, minus cornice and trim.

3. Master bathroom, 2 door cupboard to be installed on the wall as per drawing.
- 1 side forms the edge of the main door coming into the bathroom.
- Approx 42 Inches wide x 18 deep.
- 4 shelves (starting at 3 foot, then every 15 Inches

4. Living room built in cupboards 20 Inch wide, the sound system one with a small ventilation area at the back, provided by homeowner. Please see drawings.
5. 15 inch door cupboard in laundry, 2 shelves

INNSTALLATION & TILE WORK in bathrooms, by contractor.
According to drawings and instruction sheet attached.
Beautiful preparation job to get all surfaces in the bathroom smooth, for a quality tile job and or for me to paint on areas that are not being tiled.
All fixtures and accessories provided by the owner to be installed in the bathroom by the contractor. (eg, shower bar, towel racks, medicine cabinets, mirrors, toilet paper holders, etc
All installation to create a beautiful finished bathroom, ie miracle sealer to protect tiles.

MATERIALS
Contractor to provide All building and construction materials.
Frame work for the 3 pairs of old doors and cupboards.
Frame for the 5 windows.

Owner to provide. (more the finishes)
3 pairs of old doors plus 5 new ones pre hung doors
All tiles
All hardware, including hinges for all doors.(let me know what specialty ones you want for the heavy doors)
All trim, decorative casing, crown, baseboard
All accessories/items for the contractor to install. (eg door stops, mirrors)
Only exception to “all building and construction materials” that the contractor is providing, which the owner will gladly provide because they are extra’s is,
* All materials for the heater boxes.
* Cedar lining to line the clothes cupboards.

COMMENCEMENT AND COMPLETION SCHEDULE
The work described above shall be started with in 5 days of being given permission by the Body Corporate. (Sooner if contractor available)
The Contractor shall complete the above work, in a professional and expedient manner and to code requirements.

PART 1
Contractors date to totally finish part one of the job ………
PART 2
Contractor to start on …….
Contractors date to finish…….

Contractors promise of word and writing that he will prioritize this job once we have an agreement to put his efforts and men on this job to get our goal of a quality job in the shortest amount of time to completion.

Time is of the essence regarding this contract. No extension without the homeowner’s written consent. If the contractor does not complete the work in the time allowed, and if the lack of completion is not caused by the homeowner, the contractor will be charged $200 per day (plus what ever fees are charged by the Body Corporate), for every day not finished, beyond the completion date. This charge will be deducted from any payments due to the contractor for work performed.
Delayed Dates for the Body Corporate.
We will start as soon as given permission by the body Corporate, which should be as soon as we get the insurance and at the latest Monday the 22nd of Sept 2008 otherwise the additional day’s we will add to your completion time.

CONTRACT SUM
The homeowner shall pay the contractor for the performance of completed work, subject to additions and deductions, as authorized by this agreement.
The total contract sum is for $.............

PROGRESS PAYMENTS
This is to encourage time is of importance and to get the job finished in a timely manner.
The homeowner shall pay the contractor a sum listed below in 4 equal payments.
Part 1 - $..........
$ ……..2 days before the demolition work is started
$ ……..The day the build up is finished.
$ ……...The day the tiling is finished on the bathroom & medicine cabinets, mirrors and accessories in.
$ ………With in 14 days after the punch list, if no problems occur (or if they occur and are corrected). I appreciate and would like to accept your offer of coming in at a later date before I sell and fixing any small imperfections.

Part 2 - $...........
$ ……… 2 days before the demolition work is started.
$ ……… The day the build up is finished.
$ ……….The day the tiling is finished on the Master bathroom, guest bathroom &laundry
And accessories in.
$ ……. With in 14 days after the punch list, if no problems occur (or if they occur and are corrected). I appreciate and would like to accept your offer of coming in at a later date before I sell and fixing any small imperfections.

All payments are subject to a site inspection and approval of work by the homeowner, that all expenses, related to this work have been paid and no lien risk exists on the subject property.

WORKING CONDITIONS
Working hours will be 8am to 5 pm Monday thru Friday, in accordance with the building rules (no noisy work before 9am, and no unusual loud noises before 10am). Contractor is required to clean their work debris from the job site on a daily basis, and leave the site in a clean and neat condition. Contractor shall be responsible for removal and disposal of all debris related to their job description. Plus work in agreement with the body corporate ie put down the boards to protect hall carpet.

CONTRACT ASSIGNMENT
Contractor shall not assign this contract without the written consent of the homeowner.

LAWS
Contractor is responsible for all required laws and to build to code the work stated herein.

WORK OF OTHERS.
Contractor shall be responsible for any damage caused to existing conditions in this property or the building (ie the buildings newly wallpapered hallways, or any neighbors property) thru the actions of his workers.
This work shall include work performed on the project by other contractor’s. These repairs may be made by the contractor responsible for the damages or another contractor, at the sole discretion of homeowner. If a different contractor repairs the damage (ie broken window) these charges may be deducted from any monies owed to the damaging contractor by the homeowner.
If no money is owed to the damaging contractor, said contractor shall pay the invoice to the homeowner within 7 days.
The damaging contractor shall have no rights to lien the homeowners property for money retained to cover the repair of damages caused by the contractor.

CHANGE ORDERS
Written agreements eliminate the source of confusion. Change orders must be written (ie verbal will NOT be valid). Please see attached blank change order.

WARRANTY
Contractor warrants to the homeowner all work for one year from the final day of work performed.

INDEPENDENT CONTRACTOR AGREEMENT
I the contractor understand that as an Independent Contractor I am solely responsibly for my actions, health, taxes (payment of with holding taxes, FICA and other tax deductions on any earnings or payments made, and the Homeowner shall withdraw NO such payroll tax deductions from any payments due. The undersigned agrees to indemnify and reimburse the Homeowner from any claim or assessment by any taxing authority arising from this paragraph, insurance, transportation, and any other responsibilities that may be involved with the work I will be doing as a contractor, along with the independent contractors I am bringing in.

DOCUMENTS INCLUDED IN THIS CONTRACT.
Attachment 1; Contract.
Attachment 2; Demolition Drawing.
Attachment 3; Build up Drawing.
Attachment 4; Ceiling, New Soffits.
Attachment 5; All surface preparation and tiling of 3 bathrooms
Attachment 6; Change Order Form

INDEMIFICATION
To the fullest extent allowed by law, the contractor shall indemnify and hold harmless the Homeowner and all of their agents and employees from and against all claims, damages, losses and expenses.

This agreement entered into on the………… shall constitute the whole agreement between the homeowner and the contractor.

……………………………. …………………………….
Home Owner Contractor

Both initial the bottom of every page including attachments to having been read.

............................................................................................
CHANGE ORDER

This change order is an integral part of the contract dated……………….., between ………………….., and the contractor……………………..., for the work to be performed. The job location is………………………………………………………...
The following changes are the only changes to be made. These changes shall now become part of the original contract and may not be altered without written authorization from all parties.
Changes to be as follows;……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

These changes will increase/ decrease the original contract amount.
Payment for these changes will be made as follows;……………………………………
The amount of change in the contract price will be;…………………………………….
The new total contract price shall be…………………………………………………….

The undersigned parties hereby agree that these are the only changes to be made to the original contract. No verbal agreements will be valid. No further alterations will be allowed without additional written authorization, signed by both parties. This change order constitutes the entire agreement between the parties to alter the original contract.

…………………………………. …………………………………
Homeowner Contractor
Date Date

thanks - we do have the scope of work broken down and also have his liability and workman's comp certificates as well as a signed indemnity statement - luckily these were all required by the building. He has also signed the house rules. I have requested the insurance from the subs as well - thanks for that.

Will add some things from your contract Gabrielle - thanks for sharing

The good news is that he has done work for some friends and is meticulous, on time and honest. Once my work is completed - I will let you know if he is a winner to recommend. Have also met his electrician and plumber and was impressed with both.

Thanks again.

Hi, some things that jumped out at me, that some of the other writers are also making a big point of because it is really important.

Article 2...Time of Completion...what is "substantially finished" ?????? who wants that to chase up a contractor to finish all the details once you have paid him/her.
Plus what happens if they don't "substantially finish" what is the clear per day penalty. I don't have a problem making them accept a penalty, as if they tell you that is the date they will finish what are they doing lying to get the job?...just add a little buffer so both are comfortable and put an exact date for total completion. Plus on the otherside I do like to give a bonus for completing before the date.

Article 4....Progress payments...I don't like or would never do a last payment of 10% as I have heard of too many contractors leaving the 25% of work and the piddly 10% payment. To protect myself and to motivate the contractor to move if there is 4 payments, I make them all 25%, plus I make the payment for the third installment after at the final completion of the work, and the 4th installment 14 days are the completion so you have time to assess everything and for any small faults to show.

Point 6. Not that clear..Remove Debris... is this on a daily basis or weekly ? Plus the manner in which it is to be done ie, masonite or paper in the hallways, double bagging rubble to protect dust getting in the hallways, depending on your building.

Point 7...too open

Like everybody is saying put in absolutely everything or you will probably pay for it financially and emotionally.
Good luck it can go smooth.

I used a very reliable, reputable GC. Our deal was 8 payments: 20%, 15%, 15%, 13%, 10%, 10%, 10%, 7%. Each was tied to a percentage of the job being completed. I used an architect who would decide if a payment was warranted as part of her construction oversight. There was never a dispute though. 3 payments is absolutely unacceptable. That it would even be proposed concerns me. Are you having an architect involved? They should be guiding you on this. Of course, if it is a small job, I understand not having an architect. I just felt like, how the heck do I know if the wall is being built properly or if the GC is legit in telling me x or y can't be done the way we thought without added expense. I wasn't comfortable embarking on a reno without a pro at my side as my advocate. The $21,000 I paid an architect for design, extremely detailed drawings, board approval process, bid and contract review, expediting, and construction oversight was the wisest money I ever spent. Her fees were fixed to each phase of service and not based on percentage of costs of the job (percentages seem too open ended to me and I don't like them).

gabrielle - if you could give me some suggestions for points 2,4 & 7 would appreciate it.

I think 8 payments is a bit much - 3 or 4 sounds reasonable

leelaura: you will obviously choose to do what you are comfortable with. I do not know the scope of your work. I speak about renovations involving substantial work: plumbing, electric, floor refinishing/patching, reconfiguring to some degree, gutting of bath/kitchen, etc. In such jobs I respectfully disagree that 4 payments is appropriate. It is, in my experience, a path toward losing control of your own job. Smaller payments are both commonly found arrangements and largely viewed as completely acceptable in the industry. If what we are talking about is a relatively smaller job--say $40K--yes, I would change my position and agree that 4 payments is more than ok. I suppose this is an example of how bright line rules are hard to come by.

Work for friends etc is nice, but it has little to do with a fair contract. I wouldn't place too must reliance on that. He comes highly recommended and that is why you are hiring him--it has nothing to do with what your legal agreement ought to cover.

Full disclosure: I am a pain in the ass to work for, a stickler for detail, and very demanding in terms of quality. That said, I'm also IMO extremely fair, pay instantly upon receiving a request, give out gift cards for local lunch places to the crew, and express appreciation often and generously. But in the end, business is business and with the dollar amounts involved in reno in NYC, and the fact that staying on budget was essential to me, the contract terms, incorporation of the approved drawings into the contract (GC actually initialed each page of the contract drawings), the payment schedule, and involvement of an architect were key. My job finished on time (well, 1.5 weeks late on a 4 month job) and within 3% of budget. Take or leave what I share above, but that's a major accomplishment in NYC so I must have done somethings right.

What KW and LL said.

Having said that, I've gone the "wing it" approach 3 times now, and it hasn't been too bad money or time-wise because 1) I'm very hands on, inspect site daily 2) dole out payment in VERY small doses - say 20 payments 3) I have a technical background. But I suspect I also have a higher tolerance for pain than KW.

Great suggestions above - I would just add that if you don't want the workers smoking in your apartment, that should be agreed in writing. We had an issue with this and was told, "If they can't smoke in your apartment, the job will take much longer as they'll waste time on smoke breaks." How many cigarettes do they need a day??? You may also wish to search "vodka" for another post we had about tipping contractors. Kyle and Gabby had good insight there too.

thank you all for your suggestions - I have incorporated many of them into the contract.

This is a huge gut renovation - 2000 sf ripping out everything from the kitchen to 3 baths and floors, knocking down walls and building a laundry room, electrical, plumbing etc.

we are very excited and appreciate all of your input along the way from the negotiations to now

In light of the scope of your job, I cannot emphasize enough how important an architect being retained for construction oversight is. If you are not going this route, at least take a step back and consider what this will mean in practical terms. You will be the one who must bring problems to the GC and resolve them while maintaining a working relationship. If you understood things one way and the GC sees them another way, there will be no intermediary to assist in resolving the situation. An architect will stand behind his/her drawings if they are worth their salt and be very forceful with a contractor as to what the drawings state if the GC disagrees if the architect is retained for construction oversight. There were times in my job that I thought something wasn't right but the GC disagreed. I was out of my element and having the architect step in to confirm my view got virtually every conflict resolved in my favor.

I also engaged in once or twice daily site inspections and my architect was on sight once or twice a week too for conferences and progress checks--her involvement was specified in our contract. When I thought we were falling behind schedule or work wasn't progressing quickly enough, she let me know if that was just the nature of the job stage or if I was right in my concern. where I was right or even just raised a question about it, she'd reach out to the GC and iron it out. She was a way of keeping the heat on the GC without him coming to hate ME.

A huge value in my daily involvement is that a punch list was kept very very short since little things were getting picked up and correctly as they arose. In the end our punchlist was tiny things mostly relating to painting and some minor spackling issues.

A final piece of unsolicited advice: nail down as many exact specifications as you can NOW. Everything you leave "to be determined" will cost you money no matter what kind of allowance is built in or what anyone tells you. Each item to be decided later will invariably result in the GC telling you that what you eventually choose is more difficult to install, requires more extra material, is more costly than the "place-holder" amount in the budget. I specified things down to the hinges. Where I didn't know what my choices were, my architect would provide a couple options and I would research them and then choose. For example, I didn't know the first thing about recessed lighting products. The architect told me Contrast Lighting was a good source, I looked at the models at Lighting By Gregory, and the exact fixtures and finish plates were then specified in my drawings which the GC had signed and incorporated into our contract. Thus, when the GC later installed what I deemed an inferior brand, there was no dispute about whether it was better or worse since the drawings said "Contrast Lighting Model 3201A" and did not permit substitutions. He had to replace them all and we didn't have to go back and forth about whether they were 'just as good.' When the GC wanted to charge extra for laying a particular tile, I just pointed at the drawings which specified the layout and which he had signed. Same with radiator covers--they were clearly in the drawings and the expense of fabrication costs weren't my problem.

It is said that they'll get you one way or another if they underbid the job. That may generally be true, but it is hard if you have no change orders. Each change order you have is another opportunity for the GC to recover costs for items he underbid intentionally or inadvertently. Eliminate change orders and you will stay on budget.

My job was to pay on time and provide exquisitely clear expectations for the details of the job. I did that by investing in a fantastic set of construction drawings that cost me a bit more but were worth every penny. The GC's was to evaluate those expectations as embodied in the drawings and carry them out. If the GC didn't carefully read all the details in the drawings and missed something, that wasn't my problem. A fixed bid price was important to me for this reason. I didn't want some free floating labor and materials formula for the job. I said here's the job--figure it out now anyway you want using whatever formula you have and if the bid is acceptable you get the job, but you will be held to your bid so make it one you are confident of. I prefer doing business in a way that everyone's expectations are very very clearly set out and removing all that is possible from any doubt.

I'll stop now unless asked anything else on this. I guess I share all this because many people's nightmare stories about renovations are the result of poor planning on their part and could have been avoided if things such as I've written here had been more carefully considered up front.

Hi everyone,

according to poster Mpancheri and I've seen the same advice from many other websites that a contract must include cost of every item, labor and materials. I've had 4 contracts from 4 different contractors and none of them list cost of specific items. The contract generally list the price for each stage, like demolition and its cost, works to be done in kitchen and its cost, works to be done in bathroom and its cost .. so on.

question to Kylewest and NYREnewbie, did your contractor list specific price/cost for each items of work to be done for your renovation?

Thank you for yr time! Nancee

nancee: The costs of material and labor is only relevant if you decide to go with a "costs+materials" contract. I rejected that because I didn't want to become the contractor's piggy bank. I also didn't find percentage of total job fee arrangement acceptable. Too much incentive for GC to increase costs, or at very least not contain them. That is why I am a strident advocate for fixed fee contracts. Provide the GC with construction drawings of exquisite detail specifying every finish and fixture. So long as there are no change orders, his bid should be based on those drawings and then the drawings should be incorporated into the contract. This way, it doesn't matter if the electrician is $1 and the plumber is $40,000. All that matters is the bottom line amount the GC bid. Make no changes and he's locked into the bid.

If you go with time+materials, then obviously if you want some idea of how much the job will cost you, the GC will have to include the breakdown for you or you are flying blind.

Kyle,
Could you kindly share info on your architect and GC.
Thank you !