Remodeling contract

Yes, from both a legal and practical perspective. Legally, any work over $150 falls under the Home Improvement Act. The act applies to any contract between a ”Supplier” and an Indiana residential dwelling owner (”Consumer”), which concerns a home improvement project when the contract price exceeds $150. The act requires the written contract to contain a number of provisions in order to be legally binding. It is recommended that you have an attorney review the contract if you’re unfamiliar with legal contracts. (See the Indiana code on Home Improvement Projects IC 24-5-11-10 for more specific information.)

Practically speaking, an agreement should be signed no matter the size of the job. The agreement should properly outline the terms and work to be performed. The more descriptive the work to be performed, timing and the payment terms, the less likely a misunderstanding will occur. You should take extra time to thoroughly review the specifications (or scope of work) prior to signing the contract to make sure you are clear on the services provided.  Ask questions and request that your contractor revise the agreement with clarifications. Be sure your issues are properly represented and documented in writing.

There are generally two types of agreements, fixed price and cost plus. The fixed price agreement is a firm bid for a specified scope of work. This type of agreement diminishes the risk of unexpected cost overruns. The cost plus agreement, (or time and material agreement) while sometimes practical, often leads to disagreements due to a lack of cost controls. Be smart when entering into any contract agreement, but especially a cost plus agreement. Buyer beware - if it’s not in writing, it’s not in the deal.

Every remodeler member of the Builders Association of Greater Indianapolis (BAGI) has agreed to participate in the Builders Quality Assurance Standards as a membership requirement. These standards provide homeowners with a way to ensure the quality of the project will measure up to an industry approved set of standards.  We strongly encourage consumers to use a BAGI member as they are held to a higher standard of excellence.