Key Points That Should Be Included in a Remodeling Contract

In previous blogs, we have discussed how to hire a commercial construction company and which qualities to look for in a dependable contractor. Today, we want to focus on which fundamental elements should be laid out clearly and concisely in a commercial remodeling agreement. This information will help you identify weaknesses and strengths in your general contractor’s proposal, and allow you to negotiate workable adjustments to meet your overall project objectives.

Continue reading to learn the key points that should be included in a remodeling contract, regardless of the size or scope of the project.

Indianapolis Commercial General Construction
Indianapolis Commercial General Construction 317-253-0531

Remodeling Contract Basics

Overall, a commercial construction contract is supposed to outline the scope of the remodeling work. But it must be clear, precise, and as detailed as possible. This is because it will be referred to by both you and your contractor throughout the progression of the project. When a general contractor presents you with a contract, this is your first opportunity to make any adjustments if necessary.

For this reason, it is important to know what to look for and which aspects of a remodeling project should be outlined in your agreement, before you decide to sign. Not only will this give you better decision power, it will also give you peace of mind knowing that you and your commercial contracting team are on the same page.

More importantly, each state has individual construction contract statutes, some of which can be quite complex since there are so many numbers, estimates, and stipulations that usually take several hours to review. So, it is wise to have a licensed lawyer examine the contract and explain it to you in a language you can clearly understand. To hire a lawyer for contract review, you can expect the cost to be around $500 or so, with an additional $1,000 to $1,500 in the case that the contract is flawed and wholesale revisions need to be made.

Here are the top key elements that should be in a remodeling contract:


A commercial remodeling contract must include precise details regarding payments and payment schedules. This includes how much you will pay for completed work and at which points of the project you will need to make payments. It is a good sign for all payment schedules and obligations to be linked to certain project milestones, such as framing, electrical work, plumbing installations. Additionally, the first payment should not be more than 10% of the total project cost.

Work Schedule

A commercial remodeling contract must outline the full work schedule, including start dates and completion dates for the entire project. Keep in mind that the work schedule is not an exact prediction, but merely a rational time frame. It is very common, and likely, for a 10-week job to take 11 or 12 weeks. However, if your project continues months after an agreed completion date, the contract can be used to help you defend yourself in the case of a dispute.

Project Specifications

The actual project specifications do not necessarily be detailed in the contractor’s agreement; however, it should have the contractor’s itemized bid attached for reference throughout the project. A commercial remodeling contract should also contain change order specifications, which means that if the cost of something changes, it must be priced in writing and countersigned by both you and the contractor before any work commences. Lastly, it should also state that the contractor is responsible for securing all necessary permits and approvals.

Arbitration Options

In some cases, contractor and client might end up in a dispute. For this reason, it is wise for your commercial remodeling contract to contain specific arbitration clauses, which means you and your contractor will use an appointed arbitrator (not a judge) to solve any disagreements. This saves both time and money since court costs and lawyer fees are expensive. However, if your contractor recommends an arbitrator, be sure to research them first before signing your remodeling contract. Some arbitrators can be questionable and unethical.

Warranty Information

Many general contracting companies offer warranties with their work, but they are sometimes filled with exclusions and time controls that favor the contractor. You have the option to refuse their warranty, which might be better for you in terms of liability. However, in other cases, general contracting warranties are full-proof and highly-desirable for a client. It can go both ways. For this reason, it is vital that you hire a dependable company with a good, honest reputation. Also, a lawyer can help you review your warranty to determine if it is a good fit.

Indianapolis General Contractors You Can Trust

Contact BAF Corporation at 317-253-0531 for trusted commercial construction and design build services in Indianapolis, Indiana and its surrounding locations. Our skilled and experienced commercial general contractors serve corporate, commercial, and industrial industries in Indianapolis, and throughout Central Indiana. Request free information or to schedule a consultation, anytime.

Indianapolis Commercial General Contracting and Design Build Services
Contact Us Today 317-253-0531