5 Home Renovation Contract Clauses That Can Resolve Miscommunications

by Rossy Figueroa 07/25/2021

Homeowners and contractors sometimes grow frustrated because of miscommunications. Even with what appears to be a well-crafted remodeling agreement, people interpret things differently. That's why it’s essential to include mutually agreeable dispute resolution clauses in your contract.

How to Minimize Potential Disputes

Understanding how the project rolls out often proves enlightening. It's not uncommon for a construction company to juggle multiple projects. Outdoor projects require good weather and contractors capitalize on it. Many pivot to indoor work, such as a kitchen remodel when it rains.

Because of this, contracts usually include a reasonable timeline that should be followed. Employing the following best practices may help improve communication:

      • Read the contract and take a few days to think through it.
    • Identify areas that could prove problematic.
    • Negotiate any portions that make you feel uncomfortable.
    • Consider whether the timeline works with your lifestyle needs.

    Understanding timetables, workflow, materials, products and reasonable noise help property owners navigate the process. Reading the contract is always wise, but a keen appreciation of all the moving parts keeps people on the same page.

    Dispute Resolution Tools to Put in Writing

    When people involved in a construction contract become unhappy, communication can become emotional. That tends to only heighten the problems otherwise good people want to resolve. Without mechanisms in your agreement to help you, your only recourse might be to hire an attorney and litigate. Consider the following alternatives:

    1. Negotiation: Including a clause that requires parties to engage in fair negotiations may resolve misunderstandings. It may be worthwhile to outline a specific process such as electronic communication.
    2. Mediation: Agreeing to work with a designated third party offers both sides a neutral opinion about facts and reasonable ways to move forward.
    3. Expert Evaluation: Another process that is generally not binding involves enlisting a construction expert. This mutually agreed upon person can provide a concise opinion that highlights commonly adopted industry standards and how they might be applied.
    4. Adjudication: This process formalizes mediation and can be legally binding to some degree. A neutral party with experience resolving construction contract disputes renders an opinion both parties agree to follow.
    5. Arbitration: This process usually involves paying a lawyer, but it may prevent expensive courtroom litigation. An impartial arbitrator reviews facts and documents submitted by both sides. The language in the contract can make the arbitrator's decision legally binding.

    Make sure to consider these things for your next project Renovation contracts that include ways to settle disagreements out of court protect homeowners and contractors alike.

About the Author
Author

Rossy Figueroa

 

“Real estate” means so much more to me than simply buying or selling property...I believe it’s all about the people behind those transactions. A house would never be a home without them. That is why my first question to you will always be “what are your goals and how can I help you get there?”

Helping someone to plan and achieve their goals is just as important as listening to what they are. I know first-hand from over a decade of experience just how much it can take to make it happen. With honesty, diligence, and resilience, however, no hurdle is unconquerable. I can guide you through the entire process, always making you feel comfortable, informed, and in control. Like I said before, you are always the first priority.

I chose to partner with Berkshire Hathaway HomeServices Real Time Realty because, just like me, they realize that real estate agents are much more than salespeople. Every person and every goal is just as important as the last - and Berkshire Hathaway has all the tools and resources to get the job done.

It’s been an absolute privilege to meet some of you and help you achieve your goals. I can’t wait to meet the rest. Whether you’re looking to buy, sell, or both, I am confident that I am the last agent you’ll need. A better future awaits...give me a call and let’s get started!