Dealing with contractors and paperwork

Everything needs to be in writing. It’s important to have good forms when you’re dealing with contractors. Most are honest and they will work hard. There are things that are unexpected that happen. Many contractors go week to week with cash flow.  Really good communication and good paperwork that explains how you will handle certain situations, like draws, will help you avoid problems in the immediate future.

Scope of work

Example

FAQs Independent Contractor – Scope of Work

Example Company, LLC Contractor FAQ

1. What is the scope of the project?

This project involves the rehabilitation of a property located at 123 Main Street, Atlanta, GA 30303. The Contractor is responsible for completing all aspects of the rehab, including both exterior and interior work. This includes but is not limited to:

Exterior:

• Prepping and painting the entire house, including caulking, priming, and painting siding, trim, doors, soffits, fascia, shutters, gutters, and downspouts using a 3-color paint scheme.
• Painting/staining the front and back decks.

Interior:

• Demolishing the entire interior, including cabinets/vanities and flooring.
• Painting the entire interior (ceilings, walls, trim) using a 3-color paint scheme.
• Replacing plumbing fixtures/finishings throughout the house, including sinks, faucets, and toilets.
• Replacing all lighting/fan fixtures.
• Replacing interior and exterior doors.
• Installing appliances (refrigerator, stove, microwave, dishwasher, washer, dryer).

2. What is the payment schedule for the project?

The total payment for the project is $5,800.00. This will be paid in installments based on the completion of specific milestones:

• $800.00 upon signing the contract.
• $2,000.00 upon substantial completion of all exterior work.
• $2,000.00 upon substantial completion of all interior work.
• $1,000.00 upon completion of specified punch list items.

3. What is the deadline for project completion?

The Contractor agrees to substantially complete the project no later than March 1, 2010.

4. What happens if the project is not completed by the deadline?

For every full week past the deadline, the Contractor will pay the Company a fee of $200.00, which will be deducted from the final payment. This fee is a reasonable estimation of damages the Company will suffer due to the delay.

Exception: No penalty will be assessed if the delay is due to the Company’s mis-scheduling of contractors.

5. What expenses will the Company reimburse the Contractor for?

The Company will not reimburse the Contractor for any out-of-pocket expenses incurred in connection with the Project.

6. What is the duration of the Scope of Work (SOW)?

The SOW will be effective from the date first written above and will continue until the entire project is completed and paid for or until terminated as set forth in the Independent Contractor Agreement.

7. What tools and materials is the Contractor responsible for?

The Contractor is responsible for supplying all tools, instrumentalities, and building and installation materials for the project at their own expense. This includes, but is not limited to, paint, sheetrock, tape, mud, framing materials, insulation, patching materials, Durock, green-board, Drylock, mortar spacers, decking boards, and cleaning supplies.

8. What is the Company responsible for providing?

The Company is responsible for procuring all the finishing materials for the project.