The Importance of Contracts When Hiring a Remodeling Contractor One of the things you might hear every now and then is that a contract is a must for your protection when you work with a remodeling contractor.Coming up with a contract is the start of your business relationship with this professional.As you work out the contract details, you will see whether the person is somebody you can actually work with throughout the course of the project. If the contractor is hard to deal with at this phase, just imagine what it could be like when he already has your money. Having your attorney go through a legal document before you sign it is always favorable to you.In the total cost of a contract worth tens of thousands of dollars, adding a few hundred more to get an attorney is money well spent.This legal specialist will go through the fine print and tell you if he thinks there are important details missing. A contract will present key information regarding the contractor as well.You can use this info to know more about his business and potentially save yourself from headaches later on.For one, a reputable contractor will include a clause that indicates proof of insurance. Without this, you’ll be courting disaster.
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Another piece of information that should be on a contract is the contractor’s contact number; then you can just call the government to know if it’s a real number.Even on professional-looking contracts, you can find fake numbers, and this is a great way of knowing whether you’re dealing with a legitimate company or a scam.
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Now that we mentioned crooks, let’s discuss the “cold, hard cash” payment set-up.On top of the obvious — that a contract is nothing without proof of payment — an essential issue is paying cash to a total stranger.There’s a whole industry of con men posing as contractors.They will ask for a sizable cash down payment in exchange for saving you the problem of paying the taxes, never to be seen again. Another red flag is when a contractor doesn’t work with municipal inspectors, building permits and building code safety.The most important point here is that the homeowner, not the contractor, is the one who is legally responsible for securing the building permits.If the building department finds out that you’re doing a renovation without the required permits, they can force you to tear everything down, even if the project is already nearing completion.Your contractor just fades away. Bottom line is, a contractor is not a real contractor if he cannot present a proper contract.Make it a point to have one, and make it written.