What the Contract Should Include

The following excerpt is from “Contractor to Consumer; the Truth About Heating, Air Conditioning, and Home Comfort Systems” recently written by Joe Gorman of JP Gorman, Inc., Rocklin, CA.

The contract is your agreement between you and your contractor concerning the products you are purchasing, the work that the contractor will perform, and how much money you will be parting with for those products and services. Always get a complete contract with as much detail as possible. Get it in writing, get before the work is started, and save it in a safe place. If you have a problem, miscommunication, or disagreement with your contractor, you will need the contract.

At a minimum, a good contract will be in writing and should include the following:

• Names, addresses, and phone numbers of both parties
• Contractor’s license number
• Contractor’s insurance company information
• Contractor’s Workman’s Compensation insurance company information if the contractor has employees
• Contractor’s bonding insurance company information
• Description of the work being performed and all the work agreed to
• Description of the major equipment being installed, including the manufacturer’s brand and model number
• Payment terms including a payment schedule if multiple payments are going to be made
• Financing terms and payment schedule if the work is going to be financed
• start date of the work to be performed
• Completion date of the work to be performed
• A list of warranties and guarantees and a written explanation of what they mean

Photo credit: Advanced Home Energy www.advancedhomeenergy.com

Any state requirements, including special inclusions and language. All states have different requirements for home improvement contracts. These requirements can be found on your state’s contractor license board website or your state government’s consumer information website.