When working with contractors, handymen, remodelers and even some professional home remodeling companies you should always get things in writing and have a contract between all parties involved. At a minimum it should detail the scope of work, the time frame, cost & payment arrangements and all parties involved.
Some Banks and Hard Money Lenders often require investors to have one if a major rehab is to take place before a construction bank loan or private rehab loan is issued.
Here is a FREE COPY of a standard construction contract template (editable form) that we start with before starting any new project with a contractor. Working with contractors can make or break your rehab or flip house investment deal.Use this Contractor Contract to manage your contractors and handymen on all your rehab deals.
THIS IS A MODEL DOCUMENT FOR USE IN RENOVATION OR CONSTRUCTION LOAN TRANSACTIONS. THIS FORM IS PROVIDED AS AN EXAMPLE AND IS NOT VALID AND ENFORCEABLE IN ALL JURISDICTIONS. LENDERS SHOULD CONSULT WITH LEGAL COUNSEL TO ENSURE THAT ALL FORMS USED TO ORIGINATE RENOVATION OR CONSTRUCTION MORTGAGES ARE APPROPRIATE, AND THAT ALL LEGAL INSTRUMENTS ARE COMPLETED CORRECTLY AND IN COMPLIANCE WITH APPLICABLE LAW.