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Contracts
Once you have chosen a contractor and agreed upon the final plans for your home improvement project, it is critical that you clarify and confirm all of the particulars with a written contract. The primary purpose of this is to provide protection for both you and your contractor in case of a dispute. Additionally, a contract will help to minimize misunderstandings and avoid any confusion about the details of the job. Here's what should be specified*:

• The contractor's name, address and telephone number (and, if applicable, professional license number)
• A thorough description of the work to be completed
• A list of any specifications on all materials that will be used, including brand name and product, quantity, size, and color
• The agreed-upon starting and completing dates
• The total cost of the job, with a breakdown of labor and material costs
• A payment schedule (and cancellation penalty if applicable)
• Any warranties covering materials and workmanship (one year is the standard industry minimum)
• Acknowledgment that you have carefully studied and approved the plans
• Details of how the contractor will protect your personal property and clean up during or after completion of the job
• A policy for any changes to the plan during the course of the project
• Terms outlining the application for and compliance with any building permits required for the job
• A release-of-lien clause to protect yourself in the event your contractor does not pay his subs or suppliers (otherwise, you could be held liable)

The finished contract should be carefully reviewed by both you and your contractor to be certain that you fully understand all of its terms and conditions before signing. Make sure that it is complete. Do not sign the contract if you notice that a specific clause or item is missing or if you disagree with any of the terms.

And don't panic. If you decide for any reason that you don't want to go through with the job, you have the right to cancel the contract within three business days of signing it (preferably via telegram or certified mail). Your contractor will let you know about your cancellation rights and provide you with any forms you might need.

* Signing the Dotted Line..., National Association of the Remodeling Industry, 1997. Tips On ...Home Improvements, The Council of Better Business Bureaus, Inc., 1997.

Permits
It's best to let your contractor apply for the appropriate building permits for your home improvement project in his name*. That way, if his work does not pass inspection, you won't be held financially responsible for correcting it. But you should be aware of what permits are required.

The Council of Better Business Bureaus suggests that you check with your local department of licensing and permits to find out about this before the job starts.

Once the job in under way, it is the contractor's responsibility to call for inspections that will verify whether or not you are in compliance with local codes and regulations.

* Tips On...Home Improvements, The Council of Better Business Bureaus, Inc. 1997.

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