Question: We are going to add a large family room and a bathroom to our house. What protection should we include in the contract with our architect and contractor?

Answer: I receive a number of questions on this topic every year. It is an area where an ounce of prevention can make a significant difference to the homeowner, and yet it always amazes me that homeowners will hire contractors for major renovations to their homes having only a loosely written one-page "letter agreement" or nothing in writing at all.

It is absolutely essential to have a written contract with your home improvement company (the contractor) that spells out all of the terms and conditions of the proposed renovation.

We lawyers are always concerned with the "horrible hypotheticals," because all too often these turn out to be real situations. If you can anticipate the problems in advance, you can avoid unhappiness and extra expense later.

As a result of the inflated costs of real estate nowadays, more and more homeowners are opting to improve and add onto their residences in lieu of buying new homes.

Selecting a good licensed contractor is often a difficult task. Ask every contractor you interview for references. Keep in mind that most contractors will only give you favorable references; thus, you should also make arrangements to inspect the contractor's previous work to assure yourself that he or she is right for you. It is also important to make sure that the contractor is licensed in your jurisdiction.

As I have said, once you have selected a contractor, it is extremely important to enter into a written contract spelling out in detail all of the terms and conditions under which the remodeling or renovation job will be done. Do not rely on good faith, promises or a handshake.

Here are some suggestions for mandatory provisions in any contract that you sign:

Published: December 1, 2003

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