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A new home or large remodel involves a lot of people with different interests who need to work cooperatively to accomplish a single goal – completing your project. This includes the owners, designer, contractor, subcontractors, suppliers, lender, and others such as town officials. The three main tools for communication among this group are the plans, specifications, and the contract.
“Take one leg of the stool away and things get murky pretty quickly. If the owner and contractor start out with different expectations about the project or the process of getting it built and paid for, conflicts along the way are likely. The phrase “I assumed…” is the source of many misunderstandings and disputes in construction projects. Assume nothing — get every detail in writing!
The phrase “I assumed…” is the source of many misunderstandings and disputes in construction projects
Without a written contract, the plans and specs are of limited value as they describe what is to be built, but not who is responsible for what tasks, how you will handle payments, changes to the plan, hidden conditions, delays, construction quality, defective work, warranty issues, and the resolution of disputes should they occur.
In fact, a well-written contract will help prevent most disputes before they occur by establishing clear ground rules for everyone to follow. Clear ground rules will help align expectations, and help keep small conflicts from growing into large disputes. While it is uncomfortable for many people to discuss these sticky issues up front, it’s far better than waiting until you are embroiled in a big dispute. While a good contract is no substitute for good relations between the owner and contractor, it’s foolish to start a large project without one.
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Nancy says
No Permit, No Contract, Big Hole, Damaged Plumbing — How to Proceed?
A foundation company I hired started the work but has now walked off demanding that I sign a contract. My yard has a big hole they dug to fix plumbing they broke. But so far there is no contract and no permits and don’t know what to do.
buildingadvisor says
It would have been much better to get the permits and sign the contract before the contractor started the work. Now that you have a hole in your yard and damaged plumbing, you have a mess on you hands.
First step would be to contact the local building department and find out if you need a permit for this job. In most cases, they will issue you a retroactive permit if non getting one was an honest mistake. Unless you are an owner-builder it is normally the contractor’s job to take out the permit. That makes them the responsible party for scheduling inspections and meeting code.
Next step is to review the contract they are asking you to sign and see if it conforms with your verbal agreement. If it does, sign it. If you are not happy with the terms of the contract, then you will have to negotiate. If you’re not comfortable doing this, try to get the help of a friend with more experience with construction.
If all else fails, you may want to contact a lawyer to review the contract and assist with negotiations.
Best of luck in working out a mutually agreeable contract.