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How Many Times Must It Be Said? Get Everything In Writing

by Gene Vasquez

The question of whether a verbal contract is legally binding is a good one for the most part because the answer varies by state, and people entering into an agreement need to know whether verbal promises have any substance to them. When it's time to set up the actual contract for a construction or remodeling job, however, forget whether verbal contracts are legal -- get everything in writing.

Little Changes

It's easy to set up a contract and then, in the middle of the work, end up changing your mind or finding that additional changes need to be made. You and the contractor might seem like you're on the same page regarding the changes, but you really need to write everything down, including how those changes will affect the price you pay and th time it will take to complete the project. The more you change the original contract as the project goes on, the harder it can be to keep track of cost overruns and delays. With everything in writing, you have a way to track the progress of the project because you know what's supposed to be happening and when.

The Estimate and Potential Overruns

The contractors who bid on your construction project will give you either an estimate or a fixed bid for what they think they'll need to complete the project. Not only should you get the estimate in writing, but also whether it's a binding or non-binding estmate. And, if it's a non-binding estimate, you need to set some sort of agreement about increases in costs. It's not unusual at all for a project to cost more than its estimate. However, if it costs a lot more, then there could be a problem. It's possible the estimate wasn't very truthful (so the contractor could get your project) or that the contractor isn't very good. Or that there is something very wrong with the land or project plans that needs to be revisited. In all these cases, the actual cost can soar well beyond the estimate, and you need a way to ensure you're not going to get hit with excessive bills.

Payment and Work Delivery Schedules

It's difficult in construction and remodeling to create exact schedules of when each phase of a project will be finished. But you can set up a schedule of general deadlines for different phases, as well as deadlines for you to pay a percentage of the project. This schedule ensures that you are getting your construction work done, and the contractor is getting the pay needed to purchase supplies and pay workers.

Enlist the help of a construction legal  firm, like Sauro & Bergstrom, PLLC, to get all of this in writing. The lawyer will know what agreements need to be set ahead of time without going overboard.

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