A well-drafted contract protects your interests and ensures the project runs smoothly. However, certain red flags might indicate issues affecting the project’s success. Early recognition can help you make informed decisions before committing to a contractor.
Vague project details
The contract should clearly outline what work will be done, including specific materials and deadlines. If the document lacks detail about the phases of construction or the materials used, it might be a sign that the contractor is not thorough or is leaving room for unexpected changes and charges.
No mention of permits
In Tennessee, most construction projects require permits from local authorities to ensure everything meets building codes and regulations. If your contract does not mention the acquisition of these permits or if it suggests you handle them, consider it a warning sign.
Responsible contractors manage permit acquisition themselves to guarantee compliance with local construction regulations.
Unbalanced payment terms
A balanced payment schedule usually involves a reasonable deposit and progress payments as different project milestones are reached. A contractor asking for more than 50% upfront could indicate financial instability or lack of trustworthiness.
No warranty information
Look for a warranty section in the contract that covers both materials and labor. The absence of warranty information is a red flag, as it suggests the contractor is not confident in their work quality or the materials used.
Unreasonable cancellation terms
Sometimes, circumstances change, and you might need to cancel the project. A fair contract will provide terms under which both parties can cancel the agreement. If cancellation terms are punitive or heavily one-sided, it’s a warning sign.
By staying vigilant and looking for these contract red flags, you protect yourself and ensure your construction project in Tennessee starts appropriately. Always consult a professional if you need clarification on contract terms.
