Home Construction Contractors: No Contract? Big Problem!

So while you might prefer to work with just a proposal, an estimate of the scope of work with a price, or maybe even a good ole’ handshake, these approaches are risky. 

Because if one thing goes awry – there’s a disagreement with the homeowner, they didn’t understand your scope, or they thought you said “this” when you really said “that” – without a contract, the law may not be on your side. 

(And the State of Ohio is -very- protective of homeowners within its legislation.) 

Look, nobody wants to do extra paperwork. But to stay on solid ground in any residential project, you need a contract that details the parties, the price, the scope of work to be performed, and the time period when the work will be performed. 

For home construction work valued at more than $25,000, your contract must document these 10 things: 

1. The builder’s name, contact information, and Employer Identification Number (EIN)
2. The homeowner’s name and contact information
3. The address of the project
4. A description of the project work
5. The planned start and finish dates, or the anticipated duration of the work
6. The price of the work, or estimated cost
7. Any costs that are not included in the contract
8. An “excess cost” provision per the HCSSA for extra costs that go beyond the original scope of work
9. The builder’s certificate of insurance, showing coverage of at least $250,000
10. Signatures of both parties, with dates