Paperwork…we all hate it, but it really is necessary when it comes to any renovation or home improvement project. Written proposals, price quotations, agreements and contracts will protect you and the other party. Create a paper-trail can deflect problems down the road. These should be for a larger job with a contractor, designer, or worker and not necessarily someone coming in to replace a door or fix your toilet.

Proposals, price quotations and contracts
Your proposal once signed is now your contract. Make sure all details are included such as:

  • Detailed description, services and materials provided.
  • How long is the quotation valid?
  • How extra changes and if unforeseen situations occur will be handled?
  • Guarantee or warranty on materials and labour
  • Total price and breakdown, including payment schedule: How much and when due, including deposit?
  • List of exclusions
  • Clause for penalty for late completion (optional)
  • Any changes to orders and invoices should be a written down in detail and have both parties sign.

Holding back payment
Should be documented as well, preferable signed by the other party or sent by registered mail. The reason for withholding payment must be clear, as well as the terms to release the funds. Money withheld should match the job that needs to be completed.

Here is a great guide to help you out:  Get it in Writing

As well, CMHC has created a great list to follow.

 

 

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