Ohio Builder Contractor Agreements: 3 Things to Include

If you have hired (or are in the process of hiring) a contractor to do work to your home or business establishment, there are some important elements that you’ll want to include in your written agreements. Overlooking even one could result in an undesirable situation.

Here are three important things that you need to include in your written agreements with contractors.

1. Change Orders, Vendor Contracts, & Satisfaction Orders

Any changes must be in writing and signed by both the contractor and you. You also need to reserve the right to review all vendor contracts. In addition, your contractor must ensure and promise you that all vendors used for the project will be bonded fully through a performance bond. The contractor should assure you in writing that all vendors will perform work in a workmanlike manner and shall guarantee the workmanship in a reasonable time. Remember, time is of the essence.

2. Insurance

Your contractor must provide you with a copy of their general business liability policy that provides adequate insurance of the type and on the terms and conditions set forth by you. The cost of insurance must always be included in the guaranteed maximum price that you negotiate with your contractor. All subcontractors must be bonded with a performance bond.

3. Mediation / Arbitration

All claims, disputes, and other matters in question between you and your contractor should contain a mediation provision. In the event the dispute is unresolved, an arbitration provision should also be included.

For help crafting the right mediation and / or arbitration provisions, please contact our office. We’ll be happy to provide you with some sample material.

Dealing with an Unreliable Contractor?

Is your family or business struggling to deal with an unreliable contractor in the Columbus, Ohio area? The Law Office of Tom Somos, LLC is here to help. Contact our firm to schedule an in-person consultation at our local office.

Ask Tom a Legal Question »

Sign up for our Newsletter

Get some great content emailed to you