Contract Help

Cashking63

i am looking for a remodel contract that leaves it open for extras and other charges due to unforseen events. Does anyone have anything that they care to share?


jandjcustomcarpentry@verizon.net

Royal-T

Address the forseen and make a clause that no unforseen work will be performed until payment for said work is discussed and added to the contract. DO NOT perform any work that is not under contract, Give an inch, they take a mile!

Ponce

Because it is law here in CA, this is the clause we have in all of our contracts. Hope it helps.

Any Change Orders issued towards this job will be DUE & PAYABLE upon acceptance by Homeowner. In the event that the building department, engineering, or other governing body requires a change or modification, the Contractor may make that change prior to receiving written authorization in order to comply with building codes. The change in the Contract Price caused by such Additional Work Authorization shall be as agreed to in writing. Note that Change Orders may also increase the time within which the contract is to be completed. If such a delay occurs more than the quoted time on this contract it takes for completion of project, please be aware that contracted prices of material costs may need to be adjusted because of industry material cost increases occurring in the current market.

CA Contractor

Hi - we have two clauses in our contracts to cover these areas. 'Any unforeseen items to be relocated, replaced, removed or repaired shall be done at time & material cost plus ___% overhead.' 'Any changes/additions to this contract requires Owner to sign Work/Change Order with 1/2 payment due @signing & balance at completion of change.' We do high end remodels & most clients are excellent, not complaining about add'l charges, however all you need is that one ho that will make your life miserable. And so the reason we have change orders signed & payment made @ completion.

TigerFan

Here's some language we have (2 responses)

1- This section says all changes will be in writing. Then it also defines an "automatic" change order, which is when the HO walks through the house and says to one of the workers "hey can you come help me move these 10 bags of quickrete to the backyard"?

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4. All changes and deviations in the work ordered by the Owner must be in writing, the contract sum being increased or decreased accordingly by the Contractor. Unless immediate circumstances warrant a verbal change order, any claims for increases in the cost of the work must be presented by the Contractor to the Owner in writing, and written approval of the Owner shall be obtained by the Contractor before proceeding with the ordered change or revision. NOTE: All change orders are to be paid in full prior to initiation of work on the change order. Verbally directed change orders needing immediate attention are binding and due immediately. Notice of this change order type must be presented to the project manager, who will initiate a change order confirmation from the office and a bill will be delivered via email to the owner.

Change Order Explanations:

Automatic (Verbal) Change Orders
In the event Homeowner requests the service of a Contractor staff member which departs from the scope of the project, services rendered will be issued on a time and materials basis and added to the contract cost through an automatic change order process and shall be paid in full upon written presentation of the change order.

Pre-Approved Change Orders:
Additions and subtractions from the contract are handled through written change orders presented to the Homeowner within a reasonable timeframe of request.
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http://www.bayoucontracting.com

TigerFan

2- Then this section says "if you hire one of my guys on the side to paint those extra 5 rooms that weren't part of our scope of work, I'm billing you for it anyway."

I've had alot of fun with this one

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13. In the event the Owner requests the service of Contractor’s staff members, contractors, subcontractors or other Contractor related third parties which departs from the scope of the project, the services rendered for that former staff member, contractor, subcontractor, et all will be billed on a time and materials basis and added to the contract cost through and Automatic Change Order process and shall be paid in full upon written presentation of the change order to Owner.
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__________________

http://www.bayoucontracting.com

d-rez

I am not trying to be smart here- just trying to help with wording: many proper contracts (AIA) refer to the unseen or unknown as 'hidden conditions'. You can purchase AIA contracts at your cities AIA office for about $10. They will also provide you with a list of other construction documents they have for sale. Remember though: AIA docs are written by lawyers hired by Architects, that is the first party the docs will protect. The second party the docs will protect is the Architect's client: the HO. Lastly is the lowly Contractor. I suggest reading through and editing the docs, and retyping them. They are very thorough, covering most anything imaginable aside from Martian attack. -Chris
Post script-I would never allow a verbal Change Order, get everything in writting!