Where can I find information pertaining to home improvement contracts?
Full Question:
Answer:
Home improvement contracts are a tool to make sure that contractors and consumers agree on the work to be performed: how it will be done, when it will be done, what materials will be used, and how much it will cost. A well-written contract is also a tool that helps ensure enforcement of the agreement, if necessary. A contract can be oral or written. Home improvement contracts over $500 must be written. In almost all cases, it's best to put a contract in writing. It shows that there was a contract, and it proves what you and the other party agreed to do. All contracts should include the price agreed upon for the work.
Home improvement is the repairing, remodeling, altering, converting, modernizing or adding to residential property. Examples of home improvement are the construction, erection, replacement or improvement of: driveways, swimming pools, including spas and hot tubs, terraces, patios, awnings, storm windows, landscaping fences, kitchens, baths, porches, garages, basements and other structural improvements on land adjacent to a dwelling. In no particular order, here are frequently seen problems with home improvement contracts:
Excessive down payment requested.
Equipment to be used or installed not detailed, and materials to be used not described specifically enough.
Notice to owner regarding liens not included.
Job to be completed is not clearly stated and described.
Bid not figured out carefully and/or completely.
Change orders not included.
Old notices used with old addresses and noncompliant language.
Start and stop dates not included
If the payment schedule contained in the contract provides for a down payment to be paid to the contractor by the owner or the tenant before the commencement of work, it is recommended that the down payment not exceed one thousand dollars ($1,000) or 10 percent of the contract price for home improvements, excluding finance charges, whichever is less. A home improvement contract should include the schedule of payments showing the amount of each payment as a sum in dollars and cents. It should be specifically referenced to the amount of work or services to be performed and to any materials and equipment to be supplied for that payment. If the contractor has not begun the work within 20 days of the contract start date, the payment schedule specified in the contract should be postponed for the period of time equivalent to the time between when substantial commencement was to have occurred and when it actually occurred.
