Owning a home is an extremely valuable asset and upgrading your home may improve its overall value. However, if construction is not properly completed, you may suffer financial and emotional frustration. Whether work performed by a contractor is of poor quality or does not adhere to proper building codes and regulations, it’s important to protect yourself and understand your contractual rights before signing with a contractor.
What To Do Before Signing with a Contractor:In Illinois, home repair or remodeling contracts exceeding $1,000 requires a written, signed contract. The contract must state total cost, parts and materials, and any charge for an estimate. The Attorney General suggests that before signing a contract, the agreement should contain: (1) Contractor’s full name, address, and phone number (2) Description of work to be performed (3) Detailed list of all materials (4) Total cost of work performed (5) Oral promises made (6) Description and process of change orders (7) Starting and completion dates (8) Payment schedule (9) Warranties or guarantees | Before Hiring a Contractor The Attorney General recommends consumers follow at two-step process before hiring a contractor: (1) determine the scope of the work to be completed; and (2) create specifications for the home improvement you want completed. Determining the scope of the work needed is as easy as writing down the necessities you want completed. By doing this, you avoid a contractor pushing unnecessary work on you. Write down specifications, such as, the time frame of the job to be completed, materials you want used, how you wish to make payment(s), and use of subcontractors. Three Day Right to Cancel Home Repair If you hire a contractor, you have the legal right to cancel the contract within three business days. The unique aspect of this provision is that the contractor has no legal right to take away your three day right. Generally, you are allowed this right, but exclusions like emergencies and prior contact by the consumer may apply. For more information, visit: http://www.illinoisattorneygeneral.gov/consumers/ 3dayright.pdf |
Key Things to Look Out For:
DO NOT “pay up front”: Instead of paying a contractor “up front,” devise an installment plan in your contract to pay the contractor after work is completed in detailed segments.
Estimates: Receive a few estimates from other contractors to evaluate what needs to be completed. Remember, receiving estimates or price quotes are usually not offers, however, you may want to consult an attorney before signing documentation.
Lawsuit: Check with your insurance company to determine if you are covered for any injury or damage that may occur while the contractor is working. You may wish to discuss personal injury liability with your attorney before signing a contract.
Full Integration: Before signing a contract, insist on a complete, written, signed contract (full integration) to have specificities in writing. Reducing your writing to a full integration may legally help you via the Parol Evidence Rule if problems arise.
Subcontractors: Do not let a “mechanic’s lien” be placed on your home. If your contractor does not pay the subcontractors, you may be held liable.
Protect Yourself: There are specific conspicuous phrases Illinois law requires in a home improvement contract. Contact your attorney to make sure specific clauses are in your contract before signing.
Keep a log: Keep record of all phone conversations, discussions, and correspondence with your contractor. If problems begin, documentation may assist you.
“Notice of Cancellation”: Illinois law requires a “notice of cancellation” clause in your contract that allows you to cancel the transaction at any time within three days.
Estimates: Receive a few estimates from other contractors to evaluate what needs to be completed. Remember, receiving estimates or price quotes are usually not offers, however, you may want to consult an attorney before signing documentation.
Lawsuit: Check with your insurance company to determine if you are covered for any injury or damage that may occur while the contractor is working. You may wish to discuss personal injury liability with your attorney before signing a contract.
Full Integration: Before signing a contract, insist on a complete, written, signed contract (full integration) to have specificities in writing. Reducing your writing to a full integration may legally help you via the Parol Evidence Rule if problems arise.
Subcontractors: Do not let a “mechanic’s lien” be placed on your home. If your contractor does not pay the subcontractors, you may be held liable.
Protect Yourself: There are specific conspicuous phrases Illinois law requires in a home improvement contract. Contact your attorney to make sure specific clauses are in your contract before signing.
Keep a log: Keep record of all phone conversations, discussions, and correspondence with your contractor. If problems begin, documentation may assist you.
“Notice of Cancellation”: Illinois law requires a “notice of cancellation” clause in your contract that allows you to cancel the transaction at any time within three days.
You are not alone! Over 20 percent of complaints received by the Office of the Illinois Attorney General involve home repair contractor disputes. If you or someone you know has questions involving a home improvement project, call or email Neal C. Zazove & Associates to review and advise you of your rights before signing with a contractor.
Resource to Use Before Signing with a Contractor:
http://www.illinoisattorneygeneral.gov/consumers/finanhomerep0404.pdf
Resource to Use Before Signing with a Contractor:
http://www.illinoisattorneygeneral.gov/consumers/finanhomerep0404.pdf