Looking for a document that can hold my contactor acountable

[Trevon Peracca]

Here's the the deal: 

I gave a $5000.00 loan to family member who need to finish rehab work on a flip. I had my attorney draft a contract for the loan and we agreed on 20% interest with the full amount of $6000 being due on September 1st. in the contract in states that after SEP 1st interest would jump to 25% annual until paid in full. So that property hasn't sold yet and here we are...

He came to me and asked if we can work out a deal for him to do work on my personal residence to pay back some of the debt. I am open to this idea, especially since i admire his craftsmanship. I do not want to do anything under the table, i want to ensure everything is on paper so that it is fair for both parties and there is no room for communication error.

I am not sure how i would write this new contract but i pretty much want it to detail all of our material costs, labor cost, scope of work, and someway to hold him accountable if the service is not delivered as detailed in the contract.

Can someone please help me out?!?!?!?

I want to get the following work done on my master bathroom: 

Tearing out old bathtub and wall tiles in bath tub area

Tear out ceramic tile floors

Paint vanity and install new countertop

New fixtures

Frame walk in shower where the tub was

Frame bench inside shower

build trench drain

install recessed lighting in shower

tile shower up to ceiling and mosaic trim

Install shower glass

tile bathroom floor

install new base boards

install new door

[James Mc Ree]

Couldn't you just write a statement of work that specifies what you want, your contractors bids it and you agree on a price and schedule?  This just looks like ordinary work.

You could then specify that payments on this new contract will be made in the form of credits on the other debt as called for in that agreement.

IMHO, 20% and 25% interest against a family member is really, really steep.  You might want to consider how this arrangement affects the family relationship if there is any stress involved in all this.

Jim.