New construction and many renovation/remodeling projects require written contracts with a licensed residential or commercial contractor. Depending on the cost of the construction/renovation/remodeling, the contractor will be required to hold an A, B or C Contractor’s License issued by the Virginia Department of Professional and Occupation Regulation (“DPOR”) as follows:
Class C – $10,000 max per job.
Class B – $120,000 max per job.
Class A – Over $120,000.
Each written construction contract between the contractor and the building owner should contain the following:
I recommend having the construction contract reviewed by an attorney before you sign it. An attorney can flag specific provisions like putting the burden on the homeowner to take out builder’s risk insurance or analyzing the schedule of progress payments which may “front load” the payments.
Please contact us today to have your construction contract reviewed by Joan Fine.
If you are a contractor about to start a project, be sure your contract provides for written Change Orders, signed by the parties and enforce that provision! When you are about to start a project, be sure you have the appropriate license(s) for the work you are doing. Lenders are starting to ask for proof of contractor’s licenses and areas in which contractors are licensed, especially as that relates to mold remediation, electrical, HVAC and plumbing. Should you be a subcontractor on a project, a thorough review of the prime contractor’s contract should be performed prior to you signing it.
One pitfall I have seen repeatedly is owner (or owner’s agent) hires their own subcontractor (not under contract with contractor) to perform certain work. Contractor must state in writing that contractor will not warrant this work.
To prepare for your meeting with an attorney, be prepared to bring a copy of your license(s), a list of sample clients, which should include size of the job and special areas of expertise.
We can help you prepare or revise your contract. Please call our office at (540) 722-6800. We’re here to help.
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