When you are about to get a remodeling team to work on your commercial property, you should prepare for every type of situation imaginable. Aside from the regular negotiation process, you should look into BBB ratings, contact clients for referrals and even check court records to learn if any lawsuits have been filed against the company in question. If you feel confident this crew is right for the job, you can begin looking at the contract for the work. Make sure the following protections are laid out before the project starts.
Insist on milestones for work segments and accompanying payments. Contractors often juggle several projects. They need to commit to working on your property or you may find yourself waiting while they complete someone else’s work. The only way to be sure you’ll get your work done on time is to lay it out in writing. Peg payments to the established milestones so you can withhold money until the work is complete. This system protects you clearly and is definitely the best way to move forward. Insist on accountability of this nature.
Refuse simple contracts that offer you next-to-no protection. There are two-page documents that say little except which parties are signing and what is the work being done. Don’t agree to use one of these contracts when hiring a remodel team. The AIA offers several standard contracts that protect you when hiring commercial work. For one thing, any changes to the work detailed in writing will have to become amendments to the contract or they are deemed unacceptable. For clients of commercial roofing contractors there is another provision which states that the final payment not be released until all work is satisfactorily complete. It’s the ultimate protection.
Know the process following abandonment of your project. While the chances that a contractor will walk out on the job are slim, you should know what would happen following such an event. Can you get your money back in full? Make sure the contract makes mention of this prospect. While it is a worst-case scenario, you’ll feel comforted that it is explicitly addressed.
Understand how to proceed should a contractor turn out to be unlicensed. Unlicensed contractors in the commercial remodeling business are rare, but expired licenses are not the most far-fetched concept. If you have a major problem and it turns out there was no valid license in the remodeling team’s hands, you may have the opportunity to recoup your money and move on. Getting proof of licensing and insurance is essential before beginning.
Deciding upon a contract for primary commercial work includes risks; however the detailed deals accessible can protect you on many amounts. Don’t sign an agreement except if you’re positive you’ll have recourse when a team abandons the project.
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