Contracts exist to protect you and to protect your demolition contractors. Many people look on contracts as unnecessary. Why should I worry about a contract? I trust the guy. My common retort is, that’s exactly why you need a contract. Contracts spell out the Who, What, When, and Whys of a demolition contract. So what are some of the elements every contract with a demolition contractor needs?
1. Description of Work to Be Performed and a Time Frame
The description of work to be done by your demolition contractor is fairly obvious. This should be a fairly detailed section about what type of demolition work is to be done (i.e. pool demolition) and how it will be done. A time frame is simple an estimate of when a job will start (job will commence April 1, 2014) and when it will be completed (April 7, 2014). Some States in the U.S. require that all contingencies that could delay a job (bad weather for instance).
2. Payment Schedule
This is a section that spells out how a demolition contractor gets paid. Typically demolition contractors get paid in stages or tranches. I.E. a certain amount of money paid up front, a certain amount of money paid at the beginning of a project, a certain amount of money paid at the end of a project.
3. How Any Changes to the Work Will Be Handle
Typically contractors will require a dual signature on a work order to change any aspect of the demolition project. One from the contractor, one from the person who hired the contractor
4. Required Inclusions
Depending on the state there are certain required inclusions that must be included in every contract. Inclusions like warranties, resolution of disputes, and a notice of right to cancel. Check to see what inclusions are necessary in your state.
5. Choice of Law
A clause outlining a choice of law basically outlines how disputes will be handled should they arise, and whether and which court of law will handle a dispute.
You may wish to consult with a contract attorney before signing a full contract with your demolition contractor. Especially if you have a particularly intensive or complex demolition contract.
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