Advice for Using Home Repair Contract Templates with Clients
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For those who operate home repair businesses, having a customized contract for the various tasks they may complete may feel cumbersome. That is why more home repair professionals depend on home repair contract templates to use with clients.
What You’ll Find Here:
- When Home Repair Contracts are Not Applicable
- Critical Terms to Include in Home Repair Contracts
- Making the Most of Home Repair Contract Templates
- Impact of Local Laws on Home Repair Contracts
- Additional Resources
When Home Repair Contracts are Not applicable
Surprisingly many contractors and subcontractors are unaware there are times when home repair agreements or contracts are not able to be used or enforced. The specific instances include:
- For new home construction
- When a project will cost less than $500
- When the contractor is installing burglar or fire systems
For all other types of repairs, alterations, home improvements, or remodeling jobs a home repair contract template can help. Projects like replacing a driveway, improvements to the inside or outside of the home, adding a swimming pool, patio, or porch, or when a basement is being turned into livable space should always have a contract in place.
Critical Terms to Include in Home Repair Contracts
As with any contract, there are some basic features which you must include in a home repair contract to ensure it is enforceable. A home repair contract template will contain these general parts which can be customized to fit your needs. These parts include:
- Name and address of homeowner and contractor
- Length the contract is expected to run (start to finish of project)
- Details of the repair or renovation to be completed
- Estimated cost of the total project
- Plan for payment (down payment, schedule, triggering events)
- Responsibility for obtaining permits
- Termination clause
- Liability protection clause
- Remedies in the event of default
- Signatures of both parties to the contract
Making the Most of Home Repair Contract Templates
A home repair contract template usually provides contractors with additional clauses which will be helpful when working with clients. Some of these clauses include:
- Contractor’s Status — makes clear the contractor is an independent contractor and not an employee.
- Insurance Coverage — details the type of insurance you carry as a contractor and what it protects the homeowner against.
- Warranty of Work — provides information to the homeowner regarding the steps they must take if any part of the work is unsatisfactory
- Liens Pending Payment — this clause can be important if a homeowner fails to pay for work you have done. This prepares the homeowner for the potential of your placing a mechanics lien on their home.
- Changes to Contract — what is required to modify the contract and what changes may be acceptable or unacceptable.
Contractors should also ensure there are details contained in their contract in the event some of the work is to be completed by sub-contractors. Additionally, if your schedule of completion of certain items depends on the homeowner’s contract with another party, this should be detailed in your contract in the event the other party fails to perform.
Impact of Local Laws on Home Repair Contracts
Before you finalize any home repair contract, including when you are using a home repair contract template, you must check local laws. Many states have specific language which must be included in any home repair contract. A couple of examples include Massachusetts which requires specific terms be included in a home repair contract, and California which also has specific requirements which must be addressed in every home repair contract. Failing to take local requirements into consideration and including them in your contract, even when using a home repair contract template could create legal problems later.
Finalizing a Home Repair Contract
Once you have verified the home repair contract template you have used meets all of your needs and have verified it meets all local requirements, you are ready to get it signed. Rather than spend more time visiting the homeowner is person, you can have the contract executed securely right from your office.
To get your contract signed in the timeliest manner, you can use Nitro Sign to get any of your contracts or important documents signed. You and your client will have instant access to the fully executed agreement.