Do I need to worry about insurance or contracts when contracting a home?

As the contractor, it is your responsibility to upkeep insurance and contracts. When dealing with insurance, you should be covered by more than just a homeowner’s insurance policy. You need to be sure and have enough insurance to cover all “worst case scenarios.” Consult with an insurance specialist before your work begins, and check into a builder’s risk policy, owner-contractor protective liability, general liability, auto liability, and worker’s compensation. This will cover any gaps that your subcontractors may have.

 

When dealing with contracts, make sure yours deals with situations involving the completion date and a holdback of funds until the work is done. You want your labor contracts to lay out your expectations on price, schedule, and workmanship. If you are nervous about making a contract, get a lawyer on board early who can get you through the whole contracting process. Once you have created the contract, send it with each plan that is mailed to a subcontractor. That way, if a subcontractor refuses to sign it, you can work out a compromise or find another one that will work on your terms.