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Renovation Contract with a Contractor: Key Clauses, Deadlines, Warranty

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Renovation Contract with a Contractor: Key Clauses, Deadlines, Warranty

📝 Why a written renovation contract matters

A written contract protects both you and the contractor. Verbal agreements often lead to disputes over scope, cost and timing. A clear contract sets expectations, reduces misunderstandings and makes it easier to resolve issues if they arise.

🔑 Core clauses to include

1. Scope of work and technical specification

Describe in detail which rooms and systems are included, the exact works (demolition, plastering, electrical, plumbing, finishing), and whether fixtures and appliances are included. Attach plans, drawings or photos. The more precise the specification, the fewer later disputes.

2. Deadlines and schedule ⏱️

Specify start date, milestone dates, and expected completion date. Add a simple notification process for delays and a clause describing corrective steps. Avoid rigid penalties unless both parties agree — aim for a balanced approach that encourages on-time delivery.

3. Price and payment terms 💵

Record the total price and what is included. Define payment stages: deposit, payments after milestone approvals, and final settlement after acceptance. Require signed acceptance certificates or work completion acts before major payments.

4. Materials and quality standards 🔧

List required brands or minimum quality levels, or state that materials must meet local standards. Clarify who purchases materials and who inspects deliveries. This prevents substitution with cheaper alternatives.

5. Warranty and defect correction ✅

State warranty periods for works and installed equipment, and a process for reporting and fixing defects. Be specific about response times for urgent defects and about what falls outside warranty coverage.

6. Acceptance procedure and acts

Define how work is inspected and accepted: by checklist, signed acts, and photo documentation. Retain a retention or reserve until final acceptance to ensure finishing of punch-list items.

7. Change orders and additional works

Require written approval for variations in scope, including an updated price and timeline. This prevents informal ‘extras’ that inflate costs.

8. Liability, insurance and safety ⚠️

Clarify responsibility for damages to property, site safety, and waste removal. If necessary, request evidence of insurance covering workers and third-party damage.

9. Force majeure and dispute resolution

Define force majeure events and notification steps. Include a step-by-step dispute resolution path: negotiation, mediation, and, if needed, legal proceedings.

✅ Practical tips before signing

  • Ask for a written project and a timeline. Detailed documents save time later.
  • Use photo records at every milestone and require signed completion certificates.
  • Avoid paying the full sum up front; keep part of payment until final acceptance.
  • Check references, licenses, and previous work.
  • Keep all messages and emails — they can be important evidence.

✅ Quick acceptance checklist

  • Clear scope and plans
  • Agreed timeline and milestones
  • List of materials and supplier responsibility
  • Payment schedule and required documentation
  • Warranty terms and correction procedure
  • Acceptance protocol and punch-list timing

Common mistakes and how to avoid them

  • Vague scope leads to cost disputes.
  • No material specifications allow substitutions.
  • Skipping formal acceptance makes it hard to require fixes.

If a dispute arises

Document everything: photos, messages, and signed acts. Consider an independent assessment for major defects. Many issues are resolved faster through mediation than court.

If you're looking for a property to renovate or an investment, we can help you choose and advise on contract matters: https://buyhome.ge/en/apartments

Contact BuyHome if you'd like assistance reviewing a draft contract or preparing an acceptance checklist — we can help protect your investment.

Date added: 04.01.26

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