Hiring a Contractor: Protect Your Project with a Solid Agreement

Want to fix your bathroom, get a new countertop, or replace cabinets in your kitchen? If you’re not wanting to DIY your home projects, real estate owners or developers have to hire a contractor to complete it for them. It’s crucial to hire a contractor you can trust. Even with a trusted contractor, having a well-structured agreement is essential, especially in the unfortunate yet common scenario where your project encounters an unexpected setback. On the contrary, you can learn more about Firing a Contractor: What You Need to Know Before You Terminate, read our article!

A common issue is when you want to fire your contractor but the contract doesn’t set forth a clear process- or worse yet, there is no contract. Without legal guidance, you risk paying for unfinished or subpar work. Having an experienced real estate attorney at GLO review or draft your contractor agreement is essential to protect your interests and make your home projects go smoothly.

What happens when, three months into your project, the price of materials skyrockets, the contractor’s employees quit, or they start to deviate from the design you gave them? The answer to any of the questions may be complex, but they all start in the same place, what does your contract say? The owners who suffer losses due to unscrupulous contractors are those who lacked a well-crafted agreement tailored to their specific project. It is crucial to safeguard yourself by seeking professional legal advice from an experienced real estate attorney.

How You Keep Things on Track

“Payment Provisions” should appear in every written contract during a construction project. Most of the time, these provisions will describe an installment payment schedule. A well-drafted “Payment Provision” clarifies exactly when payments are due and what work milestones must be completed first. This protects you from contractors demanding full payment upfront or prematurely before earning it. Without clear payment terms, a contractor might start the project, run into minor issues, and then walk away with all your money, leaving you with an unfinished job and little recourse. Ensuring that this provision is clear, unambiguous, and sets up unique markers will be the best way to protect your project.

A change order is a formal amendment to a construction contract that modifies the contractor’s scope of work. These changes are common due to the complex and evolving nature of construction projects-it's rarely possible to foresee every issue or variable from the start. Change orders are used to address design changes, plan ambiguities, cost reductions, or unforeseen conditions. To manage these adjustments effectively, it’s essential that the construction contract includes clear procedures for approving and documenting changes. A well-drafted change order clause provides a structured process for negotiating, authorizing, and pricing any modifications to the original scope.

What if your contractor delays the work, does poor-quality jobs, or makes unauthorized changes? That in large part depends on whether you have “Material Breach Provision” and “Termination and Recover Provisions” in your written contract. Material Breach Provisions include what happens if the contractor fails to complete work on time (any unexcused delays); poor workmanship; excessive change orders; executing unapproved changes; and abandonment. It is also advisable to include a “no damage for delays” clause with the exceptions of the following: delays not contemplated by the parties; unreasonable delays resulting from fraud, bad faith, gross negligence, active interference or abandonment. The Termination and Recover Provision will outline how you can fire your contractor for any of these issues, and potentially get some of your money back in a refund.

How GLo can help

GLO’s experienced real estate attorneys review, draft, and negotiate contractor agreements tailored to your unique project. We help ensure that payment provisions protect your finances, that breach and termination clauses are clearly defined to minimize risk, and that you fully understand your legal rights before signing. If disputes arise, we guide you through resolution efficiently and effectively. To learn more about working with contractors, read Fix and Flip Deals and Working with Contractors.

Working with GLO means having a personalized, legally sound contract designed to avoid costly surprises and keep your project on track. From the initial consultation forward, you’ll have an attorney-client relationship that offers consistent, reliable support. With GLO by your side, you can move forward with confidence, knowing your investment and property are protected.

Contact GLO today to to get the legal protection and clarity you need before hiring—or firing—a contractor, and ensure your project stays on time, on budget, and legally secure.