5 Essential Contract Elements to Discuss with Your Home Addition Contractor

When embarking on a home addition project, choosing the right home addition contractor is a critical decision that can impact not only the final outcome but the entire experience of your home renovation journey. Prospect 30 Eight Construction, with years of experience building custom homes, home additions, and ADUs across the Denver Metro Area and the Front Range, understands the importance of transparency and trust in the contractor-homeowner relationship.

To ensure a smooth and satisfactory home addition project, there are several key contract elements you should discuss with your contractor.

1. Scope of Work

Detailed Description

The contract should explicitly outline the scope of work to be done, including a detailed description of the project. This section should cover all tasks that the home addition contractor is expected to perform, from demolition work if needed, to the final touches of painting. Understanding the scope ensures that both parties have clear expectations about the project’s extent.

Project Timeline

A clear timeline for the completion of the project is crucial. This should include start and finish dates, and possibly milestone deadlines throughout the project. Delays can happen, so it’s wise to discuss how they will be handled and communicated.

2. Financial Terms

Cost Breakdown

A detailed cost breakdown provides transparency and helps avoid future disputes. This should include costs for materials, labor, and any other expenses related to the project. Prospect 30 Eight Construction emphasizes the importance of honesty and providing services at a fair price, ensuring that homeowners feel comfortable and informed about where their investment is going.

Payment Schedule

Knowing the payment schedule is essential. Typically, contractors require a deposit to start the work, followed by incremental payments at different stages of the project. Ensure the payment terms are clear, including any late payment policies.

3. Licensing and Permits

Contractor’s License

Your home addition contractor must be licensed. Verify the contractor’s license to ensure they are legally permitted to undertake the work in your area.

Permits

Most home addition projects require permits from local authorities. The contract should specify who is responsible for obtaining these permits and how permit costs are handled.

4. Liability and Insurance

Worker’s Compensation and Liability Insurance

Confirm that your contractor carries worker’s compensation and liability insurance to cover any accidents or damage that might occur during the project.

5. Change Order Procedure

Handling Changes

Changes are commonplace in construction projects. The contract should have a clear process for handling changes, including how they will impact the budget and timeline.

Discussing these essential contract elements with your home addition contractor not only ensures that you’re fully informed but also helps build a foundation of trust and transparency for the project. At Prospect 30 Eight Construction, we understand the significance of your investment, and we’re dedicated to providing an honest, transparent, and top-quality service. Contact us to start making your dream home a reality, ensuring that every phase of your home addition is a satisfying and top-rate experience.

Since 2006, Prospect 30 Eight Construction has been building top-quality custom homes, home additions, and Accessory Dwelling Units (ADUs) throughout the Denver Metro Area and the Front Range. If you have any questions, please contact us for a free consultation.