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Contracts

At this point you should have reviewed bids from three different general contractors. Before hiring a contractor and signing any contract, check each of the contractor's references and look at their current and recently completed jobs. Once you have chosen a contractor that has proven experience in the scope of your kitchen project, and with whom you feel comfortable, you can review their final contract for approval.

There are two popular types of contracts--fixed-price and cost-plus. These types refer to the way the project is quoted.

Fixed-price simply means the contractor has set a price based on the agreed upon plans and materials known at the beginning of the project. Situations may arise that require unexpected changes. Changes usually require more time and expense, so the contractor will need to add the extra cost to the original "fixed price." It is advisable to have a "change order" clause in the contract and agree to the added price in writing. This reduces the likelihood of a dispute at the end of the project.

Cost-plus is also referred to as "time and materials." This is used when the project is not completely planned at the beginning and/or major revisions and additions are anticipated. This method can be a "budget-buster" as the total project cost is not known up front and additional expenses add up quickly. You are also at the mercy of the contractor/subcontractor's work efficiency. You will be paying by the hour and may not be satisfied with the amount of work that is accomplished each day.

We received the following request from a concerned homeowner that illustrates the absolute need for you and all of your kitchen professionals (designers, general contractors, and architects, etc), to sit down together and go through your contract(s) and subsequent order(s) line item by line item. The products and appliances (with Quantity, Model, Style, Size, and Material/Finish/Color) listed on your contract are what you should receive and the prices listed are what you should pay. Please see the items listed on our Include Details topic page for additional details to review and include in your contract(s) and/or order(s).

"What if there are still disputes between the home owner and kitchen remodeler? For example a trimline refrigerator was not placed as was noted in my contract? The contractor refuses to take back the new refrigerator stating a trimline refrigerator will not fit in the space he allotted for the refrigerator. How do I settle this?

The contractor stated he would take $500.00 off the balance. He said to place a trimline refrigerator would require tearing down cabinets and even reordering new ones--which he will not do. He said because I wanted a larger cabinet that there was no room for a trimline refrigerator, but he never informed me that a larger cabinet would not allow for a trimline refrigerator. Instead he just ordered a smaller refrigerator without telling me (although he said he did, he really did not inform me!!) my contract states refrigerator--trimline. No other specification with regard to this.

I asked an appliance store and they also said that a trimline would not fit in the space. So what do I do now? Do I go to small claims court? The contractor refuses to discuss it with me and is asking for his balance due which is $2000. Should I continue to withhold the $2000? He said things would "get nasty" if I did give him his balance due minus the $500."

Whether you are working with one person or several, save everyone potential aggravation by reviewing the contract and order details before any orders are placed. When either the homeowner or contractor changes something according to the contract, a "Change Order" must be agreed upon between the parties and said "Change Order" must be drawn up for whatever changes are necessary (see our Change Orders page for more details). This is intended to keep both parties in the communication loop and avoid such misunderstandings. If something happens that can’t be resolved easily between the parties, see our Conflict Resolution page for some ideas about how to resolve the problem.

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Additional Links:
StartRemodeling.com - "Home Owner Hints”
Delta Faucet Co. - “Signing a Contract”
ImproveNet.com - "Project Planning Guide - The Contract"

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