Signing contracts and managing your project finances can prove to be challenging responsibilities. After doing some research, we have come up with a few tips to help make these difficult tasks a little easier.
Take a look at this advice when dealing with your contract and your money:
- Don’t sign anything until you understand and agree with everything. Ask questions beforehand, discuss the project thoroughly.
- Get it all in writing. All details of the job including time and dates to begin and end, description of work including materials and equipment to be installed, price, schedule of payments, permit fees, and all warranties, and guarantees.
- Pay 10 percent down or $1,000, whichever is less. Contractors are not allowed to ask for more, unless they provide a bond, bond equivalent, or approved joint control ensuring completion of the project.
- Don’t pay cash. It is too hard to keep records of cash payments for both parties involved.
- Don’t let your payments get ahead of the work. Since you’ve included a payment and work schedule in the contract, it should be easy to follow. Never pay for work that has not been completed.
- Don’t make the final payment until you are satisfied with the job. Once the job is completed and you are satisfied, make the final payment.
- Keep a job file. You should keep the contract, plans, invoices, cancelled checks, change orders, and pictures of the job in progress in a file that is easily accessible. Builders Rx has a Project Management toolbox available for purchase that can assist you with these needs.
We hope these tips will minimize the amount of issues that will arise as your project progresses. Making your contract clear in the beginning will help you know what to expect for the duration of your construction job. Keeping your finances in order and tracked will help you stick to your budget and payment schedule. All construction jobs get crazy and hectic along the way but Builders Rx is here to help you keep it under control.