Looking to upgrade your home? Home renovations are filled with both excitement and stress. You feel excited because finally you’re going to get a dream kitchen, bathroom, or complete home and you’re stressed as well because there is a lot of work to manage.
Make sure to hire the right contractor who gets the Job done right in a timely manner and make sure to have a home renovation agreement in order to legalize everything. A lot of confusion and issues could arise related to the work and payments, so always ensure to have an agreement so both parties knows what their duties or responsibilities are.
In this guide we have provided home renovation agreement template for FREE download and we have covered an important information related to this agreement. So let’s get started!
Understanding Home Renovation Agreement
It’s a written contract between a home owner and the contractor or the company which is doing the renovation work. The agreement outlines the details of work to be done, estimated budget, timeline, payment terms, payment method, responsibilities, and more. This is a formal written contract that is prepared between the homeowner and the contractor.
It’s important to have an agreement in place because things can get out of control whenever money is involved, so pay attention to the agreement in order to save your legal rights. It’s equally important for both homeowner and a contractor.
This is how Home Renovation Agreement looks like:
This is a simple home remodeling agreement template. Let’s breakdown the elements of this agreement for your understanding:
Agreement Day, Date & Year: In the start of this agreement, you need to mention the day, date, and year in which this agreement is prepared.
Service Provider Information: Here you need to enter the name and contact information of a service provider i.e. contractor or company which will handle the remodeling project.
Buyer’s Information: The name and contact information of the buyer or homeowner is written in this section. Ensure to write the correct information only.
Services: List down all the services or work that is required to be done. Make sure to list all the work clearly, mention the number of projects and the price for each project. The services part should be very clear to the contractor so there is no confusion later.
Price: Mention the amount that the buyer will pay to the service provider for the completion of work.
Payment: Mention the payment method through which payment will be made i.e. cash, credit or debit card, wire transfer, etc. Choose the method that is convenient for both the parties.
So these are the most common and important elements that you can find in almost every home remodling agreement template. We have shared a FREE home renovation agreement template later in the post, do check it out.
Purpose of Using a Home Renovation Agreement
Many a times we do this mistake of start a remodeling work just on the verbal agreements. Never do this mistake. Does not matter how small or big the renovation is, make sure to have a written agreement in place.
People often neglect an agreement when they’re friend or family with the contractor, never do this. Always prepare a home remodel agreement even if the contractor is your friend or family. The whole purpose of having an agreement is to secure your legal rights.
Here are some of the reasons why you should make a home renovation agreement:
Clarify Expectations: Small mistakes here and there can create huge conflict. Therefore, make sure to have a written agreement that ensures everyone is on the same page.
Prevents Disputes: Always remember one thing “Disputes can happen easy when a money is involved”. Have an agreement in place to clearly define the scope of work, payment schedule, payment timeline, payment method, etc.
Set Professional Boundaries: It is important to set professional boundaries specially when you’re working a friend or family. Miscommunication can happen, which may even lead to issue in a relationship. Always have a formal agreement and work professionally.
Serves as Legal Proof: This is one of the most important reason why an agreement should be prepared. It serves the legal rights of both the parties and it could be used an evidence to resolve disputes.
Who Should Use This Agreement?
- If you are a homeowner who is working with independent contractors or handymen then make sure to have an agreement in place.
- If you are a friends or family who is helping with the renovations then have an agreement.
- If you are a renter who is doing approved renovations with landlord permission then have an agreement
- Have an agreement for all projects whether it’s small or big i.e. painting, deck repairs, or cabinet installations, etc.
Downloadable Home Renovation Agreement Template
Creating a home renovation agreement is a whole lot of work and only professionals can do it. But no worries, here is the quickest way, we have shared the easy to edit and use printable agreement template here for FREE download in PDF or Word format.
Using an agreement template is one of the easiest ways to create a home renovation agreement quickly without any errors or mistakes. So what are you even waiting for? Check out the template here and download it for your use.
Editable Template: Download Home Renovation Agreement Template in Word
Final Thoughts
We often mistake Home Renovation Agreement as a mere formality specially when you are working with someone who you trust. But always remember that disputes can happen whenever money is involved. Renovation is a complex process, even small misunderstanding can cause delay in work, cost may overruns, etc. So always have a formal agreement in place.
Complete the formal agreement work in beginning so you can focus on having a dream renovation in your home. Keep checking grabprintables.com for more such useful templates.