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4. Payment will be made as follows:
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The contract price, which is the exact dollar amount the contractor will be owed at the
completion of all work, should be listed in the contract. A payment schedule that
parallels the amount of work completed, with“retention” (a percentage of each payment
or of the total job which the hiring agent will retain until the job is completed) should be
outlined in the contract.
5. A statement that all required building permits and variances required by your city,
state, and county will be obtained by the contractor (or a statement that the building
permits will be handled by the homeowner) before work is started.
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6. Insurance that is required.
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The Agreement should include a guarantee that the contractor carries general commercial
liability insurance (with installation floater and builders risk) and has either Workers’
Compensation Coverage or an Independent Contractor Exemption Certificate.
7. Clean-Up of debris, wood, nails, etc.
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A statement of what cleanup and removal of debris and materials will be done by the
contractor and other instruction regarding pets, children or areas where materials may not
be stored should be includes so both parties know who is responsible for what.
8. A right to cancel clause.
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