One of the major reasons for disputes over renovation work is the lack of a
contract. The best way to avoid this is to draw up an agreement describing
the work to be done and the cost of this work. This contract becomes a legal
document, binding both parties once they have signed it. Don’t sign
anything until you are fully satisfied it describes exactly what you want and
contains everything you have agreed upon.
According to Canada Mortgage and Housing Corporation’s (CMHC)
About Your House fact sheet, the contract should include:
The correct and complete address of the property where the work
will be done;
Your name and address;
The renovator’s name, address and telephone number;
A detailed description of the project, plus sketches and a list of
materials to be used;
The type of work that will be subcontracted;
The right to retain a construction lien holdback as specified under
provincial law;
A clause stating that work will conform to the requirements of all
applicable codes;
Start and completion dates;
An agreement stating whether it is the homeowner or the renovator
who is responsible for obtaining all necessary permits, licenses, and
certificates;
The requirement that the renovator be responsible for removing all
debris as soon as construction is completed;
A statement of all warranties; explaining exactly what is covered
and for how long;
A statement of the renovator’s public liability and property damage
insurance;
Price and terms of payment
No matter how well you plan your project, changes will probably be
necessary. These can result in increased and cost delays. To protect yourself
and the renovator, changes should be made only through a written change
order detailing what’s involved and the associated cost differences. Do not
accept verbal assurances; always have it documented in writing.
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