Legitimate. Reputable. Responsible. Professional. These are adjectives that every home improvement business should want to describe their company. At HFS Financial, we want to help your business attain the highest standards of legitimacy so you can have a stellar reputation. You can start by making sure your paperwork accounts for every detail and foreseeable issue that might arise during your client’s project. They should get hard copies, and you need to keep the originals organized and safe. Here are 4 documents you should always provide your home improvement business clients.
If you try to write your own construction agreement contract from scratch, you are definitely going to be skipping important details and legal jargon. You can find standard contract documents online or hire a lawyer to help you make a custom one. There are several important parts of a construction contract, and a few of them are listed below.
Scope of Work
Include as many details about the project as possible. Then, stipulate for a change order process. The customer should know that there could be additions to the final price or extensions to the timeline if they change their mind or want to add something new.
Differentiate between hard costs (the current price of labor and materials) and soft costs (anything besides labor and materials). Soft costs can include anything from taxes and permits to accounting and office fees.
Break the project down into phases and estimate when you will be able to complete each phase. Stipulate for extensions in the case of bad weather, if applicable.
In addition to signatures on the contract, it does not hurt to get signatures on blueprints and rendering printouts. This will ensure that you and the customer are on the same page.
By the way, nothing says “legitimate” like showing your client their project using 3D rendering software, so think about investing in it if you haven’t already. Not only will it impress potential customers, but it will help you both catch mistakes before the work begins.
Proof of License, Insurance, and Bonding
If you are not licensed, insured, or bonded yet, you need to get that taken care of first. Yes, it costs money to do these things, but clients are generally willing to pay more to get the quality and protection that comes with licensing, insurance, and surety bonds.
If your customers have done their research, they will know to ask for proof of your license, insurance, and bond. You might as well have copies of the proof ready to go. Even if they were not going to ask, offering it will still make you look extra professional.
Contractor Financing Instructions
Within your contract, after the cost estimate pages, you should include instructions for how your clients can take advantage of your contractor financing. After you have partnered with HFS Financial, it is as simple as directing the customer to our 60-second application right from your own website. They will get the best home improvement loan options, and you will get project funding up front. When it comes to contractor financing, at HFS Financial, “You Dream It, We Finance It!”