Designing Kitchens: Schedules & Contracts

Schedules

Professional contractors with years of experience in this field rarely start hands-on work on a remodeling job until they have everything in hand. Although they know they will have to make extra stops, they try to avoid this. So go down your list of materials and determine which items will take the longest to get. For instance, if shipped from another state, cabinets might take eight weeks or more. Leave a margin for error or for late items. Decide which items you’ll need first and make sure you order them earlier than products you might not need until later. Don’t think “ship in eight weeks” means a firm date. This could mean only “ready to ship.” To avoid de livery delays, ask for precise estimates of the dates you will have items in hand.

Installation dates. Draw up a rough estimate of the installation schedule. Determine which step will have to come first, which second, and so forth. For instance, a tiled counter will go in before a self-rimming stainless sink, but after a recessed porcelain sink. A tile or hard wood floor might go in before the cabinets, but a vinyl tile or sheet flooring will go in after the cabinets. Naturally, each step will vary in length. Ask the various installers how long they will take to accomplish their tasks, or estimate your own time for doing it. Plot all this out on a calendar and see which weeks you will have to hang around the house waiting for deliveries and which weeks you’ll be working. Always allow some flexibility. Some kitchens can be installed in a few days. Others have been known to take weeks or months longer than scheduled. But you can try to get some sort of agreement among your various professionals as to when you should expect certain things to happen. Some of these dates will become part of any contract you draw up.

Temporary warehouse. Get some space ready in which to store the items that will be delivered— wrapped-up cabinets, cartons containing sink and faucets, and boxes of hardware. Store them so you have access to what you will need first.

Check every delivered item. Check out each item and inspect every piece of equipment to be sure you have received the correct model number, style, color, finish, size, and quantity. And make sure everything is in working condition and undamaged. It is frustrating to receive a cracked sink, but it is far worse if you don’t discover this until you are about to put it in place. When you are satisfied that you have received the correct item and that it is ready to install, repack it and put it away.

Contracts

No matter what the size of your project or how much you trust the professionals you have chosen, it is wise to write up a contract. A written contract will ensure that all the terms you have agreed upon will be remembered, acted upon, and fulfilled.

Work Arrangements

There are many ways to work with a contractor but they generally fall into two main categories: Total Price and Time and Materials.

Total Price. A total-price arrangement means the con tractor charges you a bottom-line figure that includes everything. It can be one amount for the entire project or individual amounts for separate phases of the project. The advantage of this approach is that you know how much the job is going to cost before you start. The disadvantage is that the total will include a hidden mark up—as much as 25 percent—to cover unforeseen problems. This is not refunded even if the job goes smoothly.

Time and Materials. A time and materials arrangement means that the contractor charges you an hourly rate for labor, the cost of materials, and a standard mark up (usually 15 percent) for overhead and profit. The advantage of this approach is that you pay only for what you get. Your invoice clearly shows the amount of time worked, the cost of materials, and the markup. The disadvantage is that you don’t know exactly how much the remodeling will cost until it is finished.

If you work on a time and materials basis, make sure you are clear about what the 15 percent markup includes and what it doesn’t. For example, if you do the running around and pick up the materials but charge them to the contractor’s account, will you still pay the markup fee? If you pay for COD, materials ordered by the contractor, are they subject to the markup? Is consultation time charged separately or is it included in the overhead amount? Will workers supply all necessary tools or will you be charged a rental fee? Are plans included in the markup? Does the overhead figure cover the cost of replacing faulty materials discovered six months after the remodeling has been completed? Try to think of all the gray areas and make sure that they are understood and agreed upon by both of you.

Contract Forms

Most professionals have forms of their own. Some of these may say “Proposal” at the top. This is fine for an estimate, but should you ever find yourself in a legal dispute, a signed proposal is not a binding contract. Even if you must change the heading, make sure you sign a contract, not a proposal. Although the language used on some forms may sound overly legalistic to you, it has probably been worked out to protect the professional. It may even follow an industry standard drafted by the professional’s trade organization. You can request explanations of any parts you don’t readily understand; you can attach supplemental sheets written in your own words, indicating that the attachments are to be included as part of the contract signed; or you can decide to write your own contract.

Points to Cover in a Contract

No matter what form you use, any contract should include:

• a complete list of jobs to be performed and who will do them
• complete list of materials and fixtures to be in stalled, who will purchase what, and delivery dates where possible starting date(s) for the project(s)
• completion date(s) for the project(s)
• list of liability provisions, including liens, and warranties on work or materials
• an outline of how changes in plan will be handled D a schedule of payments

Jobs to be performed. If the professional will be covering all phases of the project, then all steps should be spelled out in the contract. Your list will vary, of course, depending on your particular remodeling job, and on how much work you plan to do yourself. If you are working with several subcontractors, you may have several contracts, each spelling out only those jobs that will be performed by that particular contractor. Determine who is responsible for supplying the building department with the correct documentation, for buying the necessary permits, and for arranging for inspections. Dealing with the building department can be time consuming, so if your time is short or if your project is quite complex, you may prefer to let the contractor do this.

Materials and fixtures. All your materials will be specified on your final materials list, l there may be some you want to spell out in the contract as well, particularly if the professional will be ordering them. Specify materials in the same detail provided on your materials list. If you are having cabinets custom-built, you may want even more detail. Be sure it is clearly understood (in writing) who will purchase the materials, who is responsible for making sure deliveries are made, and to whom these materials will be charged.

Starting dates. You can’t hold the professional responsible for late delivery on materials ordered, and it may be wise to schedule everything after delivery of all materials. The relevant portions of your contract might read something like this: “Dismantling to start on February 25, 201_, or upon delivery of (brand-name) cabinets and (brand-name) tiles.”

Completion dates. These can be a bit trickier, so the terms should be clearly understood. “Days” can make a work period sound a lot shorter than it actually is. A con tractor may work only four days a week, or may take off rainy or snowy days, holidays, vacations, and sick days. One family did not understand this and was unpleasantly surprised when a “90-day” contract actually took six months. Include some approximate dates by which certain phases of the project will be completed. If your contractor won’t agree to include deadlines, try to find out why. Professionals should have a fairly good idea of how many days a job will take, and they can always add a “fudge factor” to cover any unforeseen difficulties. If you can only agree on an approximate completion date, include a clause stating that someone will be working on the job every day.

You can also insert a penalty clause specifying the amount of money to be deducted from the final payment for each day or week that work continues past the deadline date. If the contractor won’t agree to such terms but you know from your reference-checking that he is responsible about deadlines and finishes jobs on time, you may not wish to pursue the penalty clause.

Special conditions and provisions. Hopefully you won’t have a fire that destroys all the lumber that was just delivered, but you should be prepared for unforeseen problems and accidents. If you should have a fire, who is responsible for replacing the damaged items? Ask your contractor for certificates of insurance. If he does not carry any, you can buy your own for the duration of the project. Make sure the contractor carries workman’s compensation — this is his responsibility.

You can also spell out any other special conditions you want. For instance, you may wish to stipulate that you will not be responsible for liens against the contractor arising from the contract. This would protect you from being responsible for bills unpaid by the contractor. Warranties on the work should also appear in this section of the contract. You may wish to have a one-year warranty on the remodeling that includes free repairs and coverage for additional damage due to faulty materials or negligence. For instance, if a water heater is in stalled incorrectly and causes a fire or flood, you want to ensure that the contractor will repair or replace the hot water heater and repair any other areas of damage— at no cost to you.

It may be difficult to secure such terms in your con tract. If you are willing to put out the money for highly reputable firms that have been in business for many years, you may be able to order the contract your way and feel confident it will be strictly followed.

Changes are the most common cause of misunderstanding and dissatisfaction. However carefully you have thought through your project, there are bound to be things you didn’t think of and things you want to change when you actually see them. Be sure to agree in advance on how you will handle any changes in plans. This is especially important if you are working on a total-price basis: The smallest change can release the contractor from the original agreement. One method of dealing with such situations is to agree to make formal mini-contracts for each change as it comes up. There will be few disputes ii everything is down on paper.

Payment schedules. Payments vary according to hourly or flat fee rates and the type of professional with whom you are working. However, you can generally expect to pay in stages. You might make a first payment early in the ordering or designing process, a second at the time materials are delivered or installed, and a final payment upon your acceptance of the finishing work. You may want the contract to specify the exact time that the final payment comes due: “Final payment of $X,XXX will be due 30 days after completion and acceptance of the work.” The “acceptance” may be your only lever age if the contractor will not put in a clause stipulating penalty payments for late completion. If there are things not yet completed to your satisfaction, you can withhold this final payment until you are satisfied.

Don’t be put off by the effort it may take to arrive at a sound contract. You don’t need a contract that runs on for endless pages, but make sure both you and the professional understand and agree to all aspects of the project.