subject: Home Improvement Contracts, Guarantees And Warranties [print this page] Homeowners taking on a home improvement idea or home renovation project receive a lot of promises. The home improvement contracts, change orders, project guarantees and product warranties which consumers must deal with all seem to have one thing in common: the goal of customer satisfaction. But what do all these documents really mean and do they all offer the protection they promise?
Here's how to sort the difference between home improvement or home renovation contracts, guarantees, warranties and service contracts.
Written contracts are the absolute bare minimum required for all home improvement projects. The written contract is the tool that spells out everyone's expectations and responsibilities for the project. Most home improvement problems do not arise from crooked contractors. Many erupt because the homeowner and contractor have different expectations for the home improvement project.
Manufacturers' warranties are also standard for products used in home improvements, and are the assurance from manufacturers that their products will work as intended under the circumstances prescribed for use. Service contracts, sometimes called extended warranties, provide additional protection when taking on a home improvement project, but are not included in the selling price of the product.
Contracts
A contract is a document clearly stating the expectations and responsibilities of each party involved in a home improvement project. It protects each party's rights, reflects a trust between the parties, and should demonstrate a thorough understanding of the budget, project details, and what the homeowner hopes to accomplish through the home improvement work being done.
A standard home improvement project contract includes sections that describe:
the scope of home improvement work, materials and equipment
the work and payment schedules
confirmation of the contractor's ability to provide proof of all required insurance
Related documents like change orders and punch lists are just as important as the initial home improvement contract. A change order is a notice describing a change to the home improvement project contract. Change orders are typical in home remodeling, either to make a change in product selection, or if the scope of the job has changed due to an unforeseen circumstance. Change orders need to include a description of the home improvement task to be performed as well as the resulting labor and materials costs. If the home improvement project completion date is impacted by the change order, it should also list the newly agreed to home improvement completion date.
Home Improvement Guarantees
While some independent contractors are now offering guarantees, they are more common from home improvement retailers, such as Home Depot and Lowe's. Guarantees add an extra layer of assurance for homeowners who are concerned about becoming another home improvement horror story statistic.
A good home improvement contract provides homeowners with a similar level of protection as most guarantees. But most homeowners don't want to think about the hassles of trying to go through the legal system to enforce a contract. A project guarantee means that the company assumes the responsibility to assure that your home improvement project is completed to contract specifications.
