Having a functioning contract is very important when working with contractors. It is the formal agreement between the contractor and homeowner. But, homeowners are not helpless when a contract is breeched.
AHA gives homeowners some things that no contract should be without.
Protection Of Property And Person: The contractor is responsible for initiating, maintaining, and supervising all necessary or required safety programs. He should comply with all applicable rules, regulations, ordinances, orders or laws of federal, state, county, or local government. The contractor shall indemnify the owner for all property loss or damage to the owner caused by his employees, or his direct or subtier subcontractors.
Insurance: The contractor shall purchase and maintain such insurance necessary to protect from claims under workers compensation and from any damage to the owner's property resulting from the conduct of this contract.
Changes In The Contract: The owner may order changes, additions, or modifications without invalidating the contract. Such changes must be in writing and signed by the owner. The contractor shall provide the owner in writing the amount of additional costs or cost reductions resulting from changes ordered within 5 working days unless this requirement is waived in writing by the owner. Correction Of Deficiencies: The contractor shall correct promptly any work of his own or his subcontractors found to be defective or not complying with the terms of the contract. This warranty shall extend one year from the date of completion of the contract or longer if prescribed by law unless otherwise specified by other terms of this contract.
Termination: If the owner fails to make a payment under the terms of this contract (through no fault of the contractor), the contractor may, upon five days written notice to the owner, and if not satisfied, terminate the contract. The owner shall pay the contractor for work completed and any proven loss sustained on wages, materials, equipment and machinery, subcontractors and related costs, as well as reasonable attorney's fees. If the contractor fails or neglects to carry out the terms of the contract the owner, after five days written notice to the contractor, may terminate the contract, The owner may finish the job by whatever reasonable method the owner deems expedient, If the cost of completion exceeds the contract balance the difference as well as reasonable attorney's fees if necessary shall be paid to the owner by the contractor.
Homeowners should know their rights and the American Homeowners Association (AHA) has been helping homeowners since 1994.
Richard J. Roll, Founder and President of the American Homeowners Association (AHA) has helped over 1 million homeowners in all 50 states save money on buying and maintaining their homes. For more tools, information and resources to help you maintain your home and instantaneously save money go to http://www.ahahome.com for a special offer from AHA.
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