Basements may be abandoned as a storage room for most homes and usually shut down, but basements can be a pretty cool area to renovate and take advantage of extra space to use as an extra room of the house. By renovating the basement, a person who plans to sell their home will increase its quality. If you’re planning to renovate your basement, you may need to call on a construction company to help you do the renovation. But before you get to start working, a contract should be made first to ensure that everyone involved in the project knows what is expected of them to comply. Read the article to know how to make a basement renovation contract.

5+ Basement Renovation Contract Samples

1. Basement Renovation Contract Template

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2. Lobby & Basement Renovation Contract

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3. Basement Renovation Project Contract

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4. Hospital Basement Renovation Contract

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5. Basement Buildout Renovation Contract

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6. Construction Service for Basement Renovation Contract

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What is a Renovation Contract?

A renovation contract is a type of home improvement contract that outlines important aspects of a remodeling job in real estate. A construction company or general contractor draws up this type of legal contract to provide specific details about a job and to layout remedies for problems that could arise when the work is being done.

How to Make a Basement Renovation Contract

  1. Description of the project: Include a project description that outlines all of the work, materials, products, and costs that will be included in the renovation job.  You also need to include what will be demolished, what will be constructed, what will be disposed of, what necessary permits need to be obtained, and what is covered by liability and compensation insurance for the workers.
  2. Payment Terms: State the following details in this section: the total project price or the expected cost of the whole renovation job, installment payments based on project milestones, initial payment or deposit details, payment plans, and how payments should be made by the client.
  3. Projected Start and Completion Dates: Include the start and end dates of the project. The dates don’t necessarily state the exact dates of when the work will be completed but it’s important to include an estimated date when the work will be finished so both you and your client can adjust your schedules for the renovation project.
  4. Liability Clause: A liability clause should be included to place on the damages that you might be forced to pay in case something goes wrong. An indemnification clause needs to be included to also shift liability for any damages off from one party and onto another.
  5. Warranty: State if you offer any warranty on the work or materials used on the renovation job.
  6. Signatures: Conclude the contract by including the signatures of yours and your client and the date of when the contract is signed.

FAQs

Is it worth it to renovate a basement?

Yes, it is worth renovating a basement because it increases the value of one’s property. According to Remodeling.HW.net, the standard return is 70% of the cost of your basement renovation.

How much deposit should a client pay a contractor?

Generally speaking, a standard down payment is between 10% and 25% of the project cost. You might also give 30% of the total cost as a deposit for smaller jobs, such as paying professional house painters. Those dealing with more costly projects, like general contractor down payments, tend to be closer to the 10% price range.

How much does it cost to renovate a basement?

Estimating the exact amount of renovating a basement depends on the area, materials, labor, and project management. However, the average cost of renovating a basement is around $250,000 to $500,000.

Once you’re done making the draft of the contract, make sure to review it first and check to see if there are any errors or wrong information being input, and revise those mistakes before printing out the official copy of the contract. Discuss it first with your client and reach a mutual agreement with the contents of the contract before signing it. To help you get started making the contract, download our free sample templates above to use as your guide!

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