- Should be written on company letterhead
- Should contain the company’s name, address, phone numbers, and license number (if applicable)
- Should contain the consumer’s name, address (where work is to be performed), and phone numbers
- Is dated when it is written
- Includes a detailed description of the work that is going to be performed
- Provides dollar amounts associated with each task included in the project
- Includes an anticipated/estimated start and finish date
- Provides a payment schedule
- Includes a termination clause
- Contains a clause that protects the homeowner from any potential mechanics liens once you have paid the contractor in full
- Clearly states whether permits will be pulled, and who will be responsible for pulling them.
Don’t pay in full until the project is completely finished and you have completed your final inspection.
If sub-contractors were used, be sure to get signed releases from all subcontractors clearly indicating that they have been paid in full by the general contractor.
For larger projects, don’t make the final payment until you have passed the final building inspection.