Importance of Roofing Contracts
Importance of Roofing Contract Examples
Roofing contracts are of utmost importance, as they set forth the obligations and rights of both the homeowner and the contractor. They typically spell out in detail when a deposit is required, the payment schedule, how to handle any problems that may arise over the course of the project, the warranty and whether or not the contractor will be responsible for any damage to your yard or flowers. Of course this is just a short list of what a good contract will contain. It is, however, crucial that homeowners and contractors enter into a contract before any work commences. The roof protects the structure underneath it, and the contract protects the parties who enter into it. A good contract will likely spell things out in plain language, and it will be easy to read. A bad contract will be filled with legal jargon, and perhaps not be a complete agreement . A bad contract may also contain things that the parties do not understand, and that will need to be explained. A good contract will not have those provisions, or at least will put them into terms that the homeowner will understand. If the contractor is leaving the job site every day with the promise of returning the following Monday, then the payment schedule will reflect that. It should be simple, or each provision in the contract should be explained in terms that the homeowner can understand. One of my favorites are provisions that say things like, "the owner is responsible for any permits required". In many places, the contractor will be responsible for obtaining the necessary building permits. Does that mean that the homeowner is supposed to check with the city or county to verify that the contractor took out the permit? Or is the contractor the responsible party, along with assuring that the necessary inspections are performed? A good contract will make these things clear.
Roofing Contract Essentials
Regardless of your experience or your expertise in the field, you should never enter into a contract without first understanding what that contract includes. This is especially true in the following five areas of roofing contracts:
- Materials
- Timing
- Payments
- Warranties
- Liability
Always make yourself aware of the exact materials that will be used for your new roof. Do not accept a more general specification such as "architectural asphalt shingles," for example, unless you’re absolutely certain that categorization will suit your needs and match your budget. If a specific materials list is not provided, ask your contractor to review this with you prior to signing.
Before you agree to a contract, ask your contractor about the time frames for the project. In addition to the start date and completion date, find out whether you will be required to pay anything on the day your project begins. Noting these important details in writing will ensure the project’s timely completion.
You may be tempted to skip the line regarding the scheduled payments because you’re only paying in full once the work is completed to your satisfaction. But the payment schedule section is just as important for you as it is for your contractor. When you and your contractor agree on a payment schedule, you’re agreeing on the terms for when you will pay for each part of the project. A vague payment schedule may be your downfall later on when you can’t find supporting documentation related to what you paid for each distinct component.
In addition to the receipt of complete materials, many roofing contracts include stipulations related to warranties that cover both labor and materials. The terms of the warranty and the time period should be spelled out in the contract. Warranties typically cover both workmanship and materials for a specified period of time, and typically cover any replacement of faulty items, but will not cover consequential damages caused when a fault is found. On the other hand, a materials warranty can cover any damages caused by the faulty materials. Whenever a materials warranty is offered, find out where the materials were obtained so that you can pursue warranty repairs directly if needed.
This section addresses the level to which the contractor is responsible for its workers and subcontractors. Typical wording in this clause states that the contractor is responsible for the actions of any employees or subcontractors it hires to work on the job. This generally means that the contractor must carry liability insurance at a specified level for certain kinds of accidents that the job may create, and that the contractor must indemnify you as the customer against any claims or lawsuits arising from the job.
Roofing Contract Examples and Templates
There are different examples of roofing contracts that can be used by contractors to get approval for roofing projects. When it comes to residential roofing projects, the contracts are generally standardized. However, commercial roofing projects need to be discussed before-hand, especially when it comes to costs, as these can quickly escalate. Different templates are provided to contractors for residential roofing contracts, based on the services to be provided.
Basic information required in an example of a roofing contract would include details about roofing plans, materials, services to be provided, project timeline, payment structure, labor required, warranties and signoffs, among others. In addition, general clauses that govern the process will also be included in the contract.
In most cases, the contractual obligations of the contractor will be completed when all the deliverables have been fulfilled. For example, if the contractor has promised to submit the designs, doing away with the old shingles and installing new shingles as per specifications, this will be considered a successful deal upon satisfaction. In most contracts for residential construction, there is an agreement between the parties that the contractor will obtain the necessary permits. While some homeowners do not want to spend the extra money on permits, it is a good idea to have them and also make sure that the contractor goes through with the entire scope of the work. It is also the duty of the contractor to ensure complete liability insurance coverage, and any problems relating to damage to property should be settled as per the conditions of the project contract.
Obligations of the contractor are not rigidly defined and may be altered. In this sense, many types of roofing contract examples can be used in residential roofing projects. Most of the time, basic information about the project as a whole will be included in the contract. In addition, there may also be individual conditions included for compliance.
Roofing Contract Language Deciphered
Roofing contracts often contain legal jargon which is confusing for homeowners, and even for some contractors. Here are snippets of some common legal terms that are often used in roof contracts, and what they mean in plain English:
Co-insurance
Legalese: "Co-insurance" means "a co insurance clause in a policy may apply deductions upon partial loss to a building of $10,000.00 or more; after a possible co insurance clause is applied, depreciation calculated on the entire sum insured may apply."
Translation: A co-insurance clause states that if you don’t properly insure your building for its full replacement value, your insurance company can partially avoid paying you for your loss.
Indemnification
Legalese: "Contractor shall indemnify, protect and hold harmless from any claims of any nature whatsoever project owner and their employees, agents, servants and officers from any liability, loss or damage, including attorney’s fees, court costs and expert fees, for damages to persons or property due to, resulting from, the negligence of the Contractor, its employees, agents, subcontractors and sub-subcontractors."
Translation: If you screw something up, you pay to fix it, not us- so don’t even think about suing us.
Subrogation
Legalese: "In the event of any payment under this agreement, contractor hereby subrogates project owner and their agents from all right of recovery they may have against any person or entity."
Translation: We get your money before you do if it’s anyone else’s fault.
Release of Claims
Legalese: "Contractor and project owner and their agents hereby mutually release each other from all claims, demands, obligations, costs, expenses, and liabilities arising from or in connection with the work, or any act or omission of the other party and/or their agents."
Translation: We won’t bother you if there’s any problem so don’t bother us.
Termination of Agreement
Legalese: "Contractor or project owner may terminate this agreement for cause after providing written notice to the other party of default hereunder and affording to such defaulting party 14 days to cure such default."
Translation: We can stop working but you have to keep paying us.
Roofing Contract Negotiations
It’s essential to note that not every roofing contract is set in stone. Depending on what it is you find with your contract, you should be able to negotiate towards a better deal. If you find some discrepancies, or if you wish to have some of the contract’s terms listed differently, then you may want to discuss your issues with the contractor. You want to make sure everyone is happy with the terms of their contract before signing on the dotted line.
Janet M. McMahon is a consumer attorney who specializes in construction law . She comments that "It is always prudent to try to negotiate terms in a contract that are favorable to you, like how liabilities are apportioned or what happens if things go wrong. There may be items that the contractor is unwilling to negotiate, such as price, but you can still negotiate provisions in the contract like payment schedules."
If the contractor is unwilling to negotiate the material terms of the contract for any reason, then you may have no choice but to either shop around or take the contract as is. In either case, you will want to examine the terms of the contract closely, and stand by your instincts that a roofing contract seems off-base.
Roofing Contract Review and Signing
Regardless of whether you are a commercial organization or a residential homeowner, once you have selected your preferred provider of roofing services, it is time to turn your attention to the final phase of the process: signing a contract. While we all might be tempted to hastily sign a contract in hopes of getting the ball rolling and making progress, doing so is never advisable. Instead, it is critical that you walk through the following steps prior to finalizing your roofing contract.
Ensure that the following details are included in your final agreement: a comprehensive analysis of the work that will be completed, a list of the materials that will be used, an estimated time frame for completing the project, and a detailed explanation of how and when payment will be made, including the causes for any additional costs. At this point, a well-respected contractor should agree to the inclusion of these details and will be hesitant to proceed with the project if they are unable to answer any questions or concerns that arise during this discussion.
Make sure to review the following details: the start and end dates of the project, payment terms, any limitations of liability stated in the contract, the contractor’s insurance coverage, warranties for the materials that will be used, and warranties for the work that will be done.
For example, the contract should stipulate the longest amount of time that the contractor will take to complete the project, as well as the amount of time that owners and occupants of the building will have to notify the contractor of the need for repairs needed following the completion of the project. Similarly, the amount of time that the contractor has to notify the owner of manufacturing delays should also be listed.
Roofing projects are not completed without problems, so the best way to avoid these scenarios is to detail them in the contract. Consider incorporating the following into your final agreement: a list of items and services that will not be provided as part of the contract, but may be the result of the project; the process for notifying the contractor of issues or required changes that were not caused by the original plan; and how any additional costs will be documented and agreed upon.
Regardless of how certain you are of the details addressed in your agreement, it is always wise to consult with legal counsel to make sure that your final agreement is complete and fair to both parties involved. This is particularly true for commercial organizations with more at stake than just the roof over their heads.
Roofing Contract Disputes
When disputes arise under the contract, mediation is the first step. Mediation is usually a non-binding procedure whereby you and the contractor meet with a neutral third party to evaluate the merits of your claim. The mediator will not mandate a decision but will offer suggestions, and the process usually occurs within 30 days after the mediation request. The contractor pays the cost of the mediation. If mediation is unsuccessful, you can either sue or investigate Alternative Dispute Resolution (ADR). ADR is a forum where the dispute is placed before an independent third party for a binding resolution. Unlike arbitration , the court does not have to approve the referral to the ADR process. Before you can sue or file a lien, you must make a demand for mediation. This process is also beneficial for a contractor, because everyone wants to avoid going to court and incurring a lot of costs to reach a decision. If you and the contractor are unable to resolve the dispute, you may begin the service of the complaint on the contractor at its principle office. The complaint must be filed within two years from when you discovered the problem.