Business & Finance Taxes

What Should a Job Proposal Contract Contain for a Kitchen Renovation?

    • 1). Draft an introduction that contains the company name, business address and your state and local license information. If your company employs union workers, include the name of the labor union that represents your employees. Provide the name of your insurance company, coverage limits and bonding details. Include insurance information for general liability as well as workers' compensation for your employees.

    • 2). Describe the kitchen renovation project. Distinguish between a total kitchen renovation and a partial renovation, and list the specific areas that will be replaced. For a total kitchen renovation, it's not enough to simply indicate "total kitchen renovation." Include every step of the kitchen renovation in your description.

    • 3). Prepare a timeline, beginning with a start date and anticipated completion date. Include a disclaimer in case you encounter delays. Define what delays will be attributed to the contractor and which ones are attributed to the customer. If there are delays caused by the contractor, describe what, if any, concessions or accommodations will be made. If the delays are the fault of the customer, include a statement about how you adjust the timeline due to customer-related delays.

    • 4). Provide details about the scope of work. Indicate if a total demolition is necessary, or if demolition will occur in stages. Customers can plan continued use of their kitchen if the demolition occurs in stages. If a total demolition is necessary, estimate the length of time your customer will be unable to use the kitchen.

    • 5). List all of the materials and supplies for the kitchen renovation. Flooring supplies will include the amount of tile, hardwood or carpet materials required for the project. Include the amount of cabinetry, the composition and whether it's custom-made or store-bought. If you include custom-made cabinetry, factor that into your renovation timeline, as well as details about potential delays. Describe the type of countertop materials, measurements and installation. Importantly, indicate if the contractor or customer is responsible for purchasing materials and supplies.

    • 6). List all appliances that will be installed. Customers typically purchase their own appliances and arrange for delivery and installation. The kitchen renovation job proposal should state the approximate window of time during which appliances can be delivered and installed.

    • 7). Describe all legal processes such as permits and dispute resolution. Some jurisdictions require that homeowners and contractors obtain permits for indoor electrical or plumbing work. In the event of a disagreement or customer dissatisfaction concerning the work, indicate how disputes are resolved. Some contractors use mediation or arbitration -- if that's the route you choose, indicate the state laws you follow for dispute resolution.

    • 8). Itemize every step in calculating the cost of the renovation. Provide separate costs for demolition, flooring, cabinetry, countertop, electrical and plumbing work, installation and any other jobs in the renovation. Describe your payment plan, methods of payment accepted and penalties for late payment or nonpayment.

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