HIRING A CONTRACTOR
What Should be Included in a Contract?
I have received bids for work and every contractor seems to write their proposal differently. Some are just hand written on a sheet of paper, some say proposal, some contracts are 10-12 pages long and have a boiler plate of information. What should be included in a contract to protect me as the homeowner?
Ed, this is a great question and so often is the basis for issues and problems. Arizona statutory law requires that all construction contracts over $1,000 contain at a minimum the following items:
• The name and business address of the contractor
• The contractor’s license number
• The name and mailing address of the owner
• The jobsite address or legal description
• The date the owner and contractor signed the construction contract
• The estimated date of completion of the work
• A description of the work to be performed
• The total dollar amount to be paid to the contractor for all the work, including all taxes
• The dollar amount of any advance deposit paid or scheduled to be paid to the contractor by the owner
• The dollar amount and stage of construction for any progress payments to be made to the contractor
• Specific information, prominently displayed, explaining how to file a written complaint with the Registrar of Contractors
• And it is also important to ask for copies of liability insurance and workers comp coverage