Make sure everything is in writing - assume nothing!

Although you might assume that a "contract" should look like a contract, anything you sign could be used by a contractor as authorization to go forward with your project. This means that any bid you sign may become the contract. Do not sign anything until you completely understand what you are signing and agree to all the terms.

Be sure to ask questions until you fully understand the contract and what the work will look like. Before signing anything, you may wish to discuss the proposed contract, plans and specifications with an attorney.

Have it in writing

One of the best ways to stop problems before the job begins is with your contract. The contract binds you and the contractor to the project. Since a written contract protects both you and the contractor, all agreements should be put in writing. It should include everything you have agreed upon and the extent of the work to be done. Get all oral promises in writing, and spell out exactly what the contractor will and will not do. If you intend to do some of the work yourself or hire another contractor to do it, this also should be written into the contract. Be as specific as possible.

Never sign a blank or partially blank contract. Get a copy of the contract as soon as you sign it, and keep it for your records. Both you and the contractor are bound by everything set down in the contract, so read it carefully before you sign. If you have any questions or don't understand something, ask before you sign. (See booklet "Home Improvement Contracts: Putting the pieces together")

Be sure the financial terms of the contract are clear. The contract should include the total price, when payments will be made and whether there is a cancellation penalty. On any home improvement job you should expect to make a

California law requires that the amount of the

Make sure everything you are paying for is in the contract

The contract should specify all materials to be used, such as the quality, quantity, weight, color, size, or brand name as it may apply For example, the contract should say "install oak kitchen cabinets, manufactured by Company XYZ, model 0381A, as per the plan," not just "install kitchen cabinets."

Make sure your contract includes everything you feel is important to the job, including complete cleanup and removal of debris and materials, and special requests like saving lumber for firewood or saving certain materials or appliances. Also give instructions regarding pets, children or areas where materials may not be stored.

After you have a signed contract, and even after work has already begun, your contractor may offer suggestions that will change your original ideas for the work. The contract should clearly state your final agreement and accurately reflect everything involved in the work being done by your contractor. If you have discussed added work, substitutions of materials or equipment, or changes in the completion date, make sure that clearly worded and signed "change orders" reflect this. (See page 30 for the items your contract should contain.)

Your down payment may not exceed $1,000

or 10% of the contract price,

excluding finance charges,

whichever is less!

Three-day cancellation period

The law requires a contractor to give you written notice of your right to cancel a contract within three business days of signing it, provided that it was solicited at some place other than the contractor's place of business or appropriate trade premises (your home, for instance) Use those three days to review the contract again. If something bothers you, don't be afraid to cancel the contract. If you do cancel, by all means call the contractor; then make sure your cancellation is in writing. Sending the cancellation to the contractor by registered mail will give you a record of its mailing date and of its receipt by the contractor. Thereafter, you can work out the problem with your contractor and sign a new contract, or you can get a different contractor if you prefer.

If you have any concerns, see an attorney right away. Make sure all the contract terms are in writing and that you understand and agree to everything in the contract.

Warranties

Be sure to get any warranty offered by the contractor for labor and materials in writing. It should specify which parts of the work are covered and the duration of the warranty. You should also request any written warranties offered by the manufacturers of materials or appliances installed by the contractor. For patent or readily observable defects, California law limits the period within which a complaint may be filed against a contractor to four years from the date when the act or omission occurred. This statute of limitations may be extended if there is an express, written warranty issued by the contractor. If such a warranty has been breached by the contractor, the CSLB has authority to act on a complaint during the entire duration of the warranty. However, the CSLB has no authority to enforce a warranty given by a manufacturer or material supplier. A ten year statute of limitations exists for certain latent defects in the construction.

Scheduling the work

Your contract should specify an approximate starting date and completion date for your project. However, external factors such as the weather or the availability of supplies might cause delays.

Scheduling the payments

Make sure the payment schedule is based on the contractor's performance. Never let your payments get ahead of the contractor's work, and make sure the contract provides for a "retention." A "retention" is a percentage of each payment or of the total job, ordinarily 10 percent, which you retain until the job is completed.

Never sign a completion certificate until all the work called for in the contract has been properly completed. Lenders usually require a signed completion certificate before they will release the last payment.