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How to Write a Contract

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This story is a tough one.  There's no way both sides can be telling the truth.  The only way anyone would know who was being honest would be by looking at the contract.  Unfortunately, this is one of those times that no contract was ever drafted.

So before you let anyone begin on a home repair project, write up a contract.  It can be handwritten, but it needs to include some key pieces of information. 

The Federal Trade Commission has put out some tips, and through my experience, they are useful ones:

The agreement should be clear, concise and complete. Before you sign a contract, make sure it contains:

  • The contractor's name, address, phone, and license number, if required.
  • The payment schedule for the contractor, subcontractors and suppliers.
  • An estimated start and completion date.
  • The contractor's obligation to obtain all necessary permits.
  • How change orders will be handled. A change order - common on most remodeling jobs - is a written authorization to the contractor to make a change or addition to the work described in the original contract. It could affect the project's cost and schedule. Remodelers often require payment for change orders before work begins.
  • A detailed list of all materials including color, model, size, brand name, and product.
  • Warranties covering materials and workmanship. The names and addresses of the parties honoring the warranties - contractor, distributor or manufacturer - must be identified. The length of the warranty period and any limitations also should be spelled out.
  • What the contractor will and will not do. For example, is site clean-up and trash hauling included in the price? Ask for a "broom clause." It makes the contractor responsible for all clean-up work, including spills and stains.
  • Oral promises also should be added to the written contract.
  • A written statement of your right to cancel the contract within three business days if you signed it in your home or at a location other than the seller's permanent place of business. During the sales transaction, the salesperson (contractor) must give you two copies of a cancellation form (one to keep and one to send back to the company) and a copy of your contract or receipt. The contract or receipt must be dated, show the name and address of the seller, and explain your right to cancel.

For more information on home improvement projects, check out this link:

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