What Are Some Possible Legal Considerations?

   For a large remodeling job that involves many subcontractors and a substantial financial commitment, you should protect yourself from liens against your home in the event the remodeler does not pay subcontractors or suppliers. Depending on local laws, you should add a clause to your contract requiring the remodeler, subcontractors and suppliers to furnish a release of lien. If you have obtained financing for your project, the bank or lending institution might require the contractor to verify that subcontractors and suppliers have been paid before releasing funds for subsequent phases of the project.

   Some contracts offer an arbitration clause to settle disputes. Inserting an arbitration clause in your contract is a reasonable precaution and could enable you to resolve disputes and enforce your warranty without litigation.

   You may have legal rights and remedies beyond those referred to in this guide. If your remodeling job involves a substantial sum of money or if a legal problem arises, you may want to contact an attorney for advice.