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Making a Remodeling Contract
Before your contractor's sledgehammer makes contact with the wall, make sure you've drawn up the details for making your dream a reality in a Remodeling Contract. If you are a contractor, a detailed Remodeling Contract offers the best protection against potential misunderstandings with a property owner. Whether the project is to remodel a family home or a commercial space, signing a Remodeling Contract will help make sure that everyone is on the same page.
Rocket Lawyer's free Remodeling Contract document can be used if:
Making a Remodeling Contract gives you the opportunity to outline the expectations of both parties to the agreement. Contracts define the scope of the work, how much the job will cost, when payments need to be made, and how disputes are to be handled. If you do not have the agreement in writing, disagreements or misunderstandings may arise.
A general rule of thumb for construction contract deposits is somewhere between ten and fifteen percent of the estimated total cost. However, the amount you should expect to pay upfront depends on where you live, as some states have limitations for the maximum upfront payment that a contractor can require. If the contractor has to order certain materials in advance, that also could affect the payment required before work gets started. You can conduct online research in your specific market or speak with other people who have had similar work done to find out what the market rate is.
Contractor rates are highly sensitive to their local markets. You can generally find information about rates by doing some geographically-specific research.
If either party cannot fulfill their end of the agreement, you should first attempt to resolve things amicably. You could explore amending the initial contract to meet your changed needs. If altering the contract is not an option, you'll want to review the original contract to see what options for canceling the contract are outlined in the original agreement. You may be able to get out of a contract without legal consequences if both parties agree as to how to proceed. If both parties cannot agree on how to solve the problem, you will likely need to consider mediation or small claims court.