Make contractors complete a written contract for each job?

[Brent Kiger]

All,

Quick question about a construction contract. I recently purchased a single family house and am having a contract repair some foundation work. I was curious how many investors make contracts complete a written contract regarding the scope of work, to include being listed as an additional insured on the the contractors insurance policy?

Curious to your thoughts, as always, thanks to the community for such timely and quality responses.

Brent

[Robert Rayford]

I own a General Contracting Co. and a Plumbing Co. in the Bay Area Ca. We carry our own contracts and any reputable contractor will have there own contracts. We have a 2 page contract for simple jobs and a 11 page contract for the large 6 figure jobs. I have had customers present their own contract but once they review mine we usually just red-line any changes they wish to include or exclude. As far as insurance, a Construction Contractor especially a foundation company should carry General Liability Insurance. This insurance covers any and all work the Contractor works on. But if you feel you need a to be added to their insurance then you would want to ask for a "certification of coverage" for the type of work and the cost limits of the policy. In most states General Liability Insurance is not a condition of licensing so protect yourself and don't assume there is coverage. What most homeowners miss is the Workers Comp insurance requirement. If a worker of the contractor gets hurt while working on your property then your as liable as the contractor. Be sure to ask for this also. If you really want to protect yourself you can contact REI Guard for a Builders Risk policy and just subtract this amount from the bottom line.