{"id":53,"date":"2020-01-30T14:56:42","date_gmt":"2020-01-30T14:56:42","guid":{"rendered":"https:\/\/www.bafcorp.com\/blog\/?p=53"},"modified":"2025-10-30T21:54:53","modified_gmt":"2025-10-30T21:54:53","slug":"key-points-that-should-be-included-in-a-remodeling-contract","status":"publish","type":"post","link":"https:\/\/www.bafcorp.com\/blog\/key-points-that-should-be-included-in-a-remodeling-contract\/","title":{"rendered":"Key Points That Should Be Included in a Remodeling Contract"},"content":{"rendered":"\n
In previous blogs, we have discussed how to hire a commercial\nconstruction company and which qualities to look for in a dependable\ncontractor. Today, we want to focus on which fundamental elements should be\nlaid out clearly and concisely in a commercial remodeling agreement. This information\nwill help you identify weaknesses and strengths in your general contractor\u2019s\nproposal, and allow you to negotiate workable adjustments to meet your overall\nproject objectives.<\/p>\n\n\n\n
Continue reading to learn the key points that should be included\nin a remodeling contract, regardless of the size or scope of the project.<\/p>\n\n\n\nIndianapolis Commercial General Construction 317-253-0531<\/figcaption><\/figure>\n\n\n\n
Remodeling Contract Basics<\/h1>\n\n\n\n
Overall, a commercial construction contract is supposed to\noutline the scope of the remodeling work. But it must be clear, precise, and as\ndetailed as possible. This is because it will be referred to by both you and\nyour contractor throughout the progression of the project. When a general contractor\npresents you with a contract, this is your first opportunity to make any adjustments\nif necessary. <\/p>\n\n\n\n
For this reason, it is important to know what to look for\nand which aspects of a remodeling project should be outlined in your agreement,\nbefore you decide to sign. Not only will this give you better decision power,\nit will also give you peace of mind knowing that you and your commercial contracting\nteam are on the same page. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Here are the top key elements that should be in a remodeling\ncontract:<\/p>\n\n\n\n
Payments<\/h2>\n\n\n\n
A commercial remodeling contract must include precise\ndetails regarding payments and payment schedules. This includes how much you\nwill pay for completed work and at which points of the project you will need to\nmake payments. It is a good sign for all payment schedules and obligations to\nbe linked to certain project milestones, such as framing, electrical work,\nplumbing installations. Additionally, the first payment should not be more than\n10% of the total project cost.<\/p>\n\n\n\n
Work Schedule<\/h2>\n\n\n\n
A commercial remodeling contract must outline the full work\nschedule, including start dates and completion dates for the entire project. Keep\nin mind that the work schedule is not an exact prediction, but merely a rational\ntime frame. It is very common, and likely, for a 10-week job to take 11 or 12\nweeks. However, if your project continues months after an agreed completion\ndate, the contract can be used to help you defend yourself in the case of a dispute.<\/p>\n\n\n\n
Project Specifications<\/h2>\n\n\n\n
The actual project specifications do not necessarily be detailed in the contractor\u2019s agreement; however, it should have the contractor\u2019s 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. <\/p>\n\n\n\n
Lastly, it should also state that the contractor is responsible for securing all necessary permits and approvals.<\/p>\n\n\n\n
Arbitration Options<\/h2>\n\n\n\n
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. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Warranty Information<\/h2>\n\n\n\n
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. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
Indianapolis General Contractors You Can Trust<\/strong><\/h2>\n\n\n\n
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