Home Renovations- Understanding The Contract

What to Look for In a Contract

Putting a contract (or agreement) in place for any home repair, renovation or home build job is very common practise. The reason for this is to protect you and the trade business when working together.

You obviously want to make sure you get the job done to an expected quality level and within a certain time frame. The trade business wants to ensure they get paid for their time, labour, costs and effort.

The contract should form a key part of the discussion with any tradie you are planning to use.

We list below some of things you want to ensure are covered in the contract.

Tradie Contracts Watch-Outs

1. Contract Essentials

The written contract should contain the tradie’s business name, business address, contact number and license number.

If materials and appliances are part of the quote, make sure they are all listed including their model numbers and brand names.

This may not just be applicable for builders but even for contracted work with painters, cabinet makers, plumbers or electricians.

And very importantly, ensure the contract includes a detailed list of the scope of works, plus what is “excluded” from the scope of works to avoid confusion. For example, certain things that a tradie may exclude could include: rubbish removal.

2. Completion and Payment Schedule

Ask your tradie to provide estimate dates for each stage of completion from start to finish. Ask also for any possible reasons for delays to help you anticipate problems and work around them.

Be careful about the payment schedule. The contract should state the payment terms, amount and conditions for each stage. It is your responsibility to ensure it is delivered to the quality you expect before you release each payment.

Specify when the final payment will be done and under what condition: a specified date or upon completion?

3. Other Contract Considerations

• Avoid any verbal agreements. May sure everything is done in writing.

• Check your state department Fair Trading and Consumer Affairs website to see if a written contract of works is needed for the type and size of job you are doing. These do vary by states.

• Read the entire contract before you sign anything. Ensure that you understand all the stated terms before proceeding with the project.

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