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Consumer Tips

HOME IMPROVEMENT CONTRACT

A good contract should contain the following:

  • Business Name
  • Business Physical Address
  • Business Mailing Address
  • Telephone Number
  • Owner's Name
  • Professional License Number

All agreements and oral promises regarding a home improvement project should be put in writing to protect both the customer and the contractor. If you intend to so some of the work yourself, or have another contractor to do it, this should be written into the contract as well.

The written contract should also include:

  • A complete description of the work to be done, including a specific listing and cost of materials to be used
  • Agreed upon start and finish dates
  • Total cost with a breakdown of labor and material charges
  • A payment schedule
  • Any warrantees and guarantees of workmanship
  • Jobsite cleanup: who and how it will be completed, and is it included in the total price

If the contract is done in your home or away from the business address, you must be given a three-day right to cancel. Sunday is not considered a business day.

NEVER sign a partial or blank contract! Read every clause carefully, and ask any questions you may have before signing. Keep a copy of the signed contract for your records.

The contractor should provide proof of insurance.

LIEN PROTECTION
If the contractor is using subcontractors, make sure you have a Release of Lien clause to protect you in case the subcontractors are not paid by the contractor.

WARRANTY CLAUSE
All warranties offered by the contractor should be in writing. Read the warranty carefully, and make sure you understand all the terms and conditions, including the length of the warranty. It must be clearly stated if it is a "Full" or a "Limited" warranty.

RED FLAGS
Be wary of any of the following:

  • If a start or finish date is not included
  • If a business uses only a P.O. Box as an address

 

Department of Consumer Protection /
Weights and Measures
Michael D. Bannon
Director
50 North Main Street
Doylestown, PA 18901
Phone: 215-348-7442
Fax: 215-348-4570
Canny Consumer Hotline 1-800-942-2669