Construction Contracts

Construction law oversees agreements and disputes between homeowners and builders. When establishing a contract certain clauses should be inserted to clarify results. It is recommended the contract include a stipulation that if the job is not done completely or correctly, payment is allowed to be withheld. In addition, a written condition should be included for the homeowner to withhold money if a material supplier or subcontractor files a claim against them.

The contractor is not bound by an estimate. If it does not specify that it is a binding contract, nothing is set in stone. Inquire as to what exactly the estimate includes. Many will often only include labor costs without adding the costs of materials. Ask who will get the materials. If the contractor volunteers, see if any extra costs are involved for the time spent as well as whether you will be charged the retail or wholesale price.

When selecting a contractor ask for references. Call the former customers and see if the contractor's prices were relatively accurate, comparing the estimates to the final charge. Keep in mind additional and unexpected costs are often involved in construction projects. Also, changing contractors can be very expensive as well.

If there is a large discrepancy between the estimate and the final bill which you cannot account for, action can be sought through the Better Business Bureau and the local contractor's guild. If the above action fails or if fraud is suspected, contact a business lawyer at Slater Kennon & Jameson, L.L.P. by calling 512-472-2431.