We often advise general contractors and subcontractors on construction law and litigation matters. Now that our economy is strengthening, it is plain to see that there is an increasing amount of residential and commercial construction projects being undertaken. This also includes residential remodeling.
The purpose of this letter is to provide some useful information to guide you when entering into a contract for construction. Every contract between a contractor and a property owner for services of $1,000 or more must be written and must contain certain information, as set forth in A.R.S. § 32-1158(B). The required information is:
- The name of the contractor and the contractor’s business address and license number.
- The name and mailing address of the owner and the job site address or legal description.
- The date the parties entered into the contract.
- The estimated date of completion of all work to be performed under the contract.
- A description of the work to be performed under the contract.
- The total dollar amount to be paid to the contractor by the owner for all work to be performed under the contract, including all applicable taxes.
- The dollar amount of any advance deposit paid or scheduled to be paid to the contractor by the owner.
- The dollar amount or any progress payment and the stage of construction at which the contractor will be entitled to collect progress payments during the course of construction under the contract.
- Notice that the property owner has the right to file a written complaint with the Registrar of Contractors for an alleged violation of A.R.S. § 32–1154(a). The contract shall contain the registrar’s telephone number and website address and shall state that complaints must be made within the applicable time. As set forth in A.R.S. § 32–1155(a), the information in this paragraph must be prominently displayed in the contract at least 10 point bold type, and the contract shall be signed by the property owner and contractor or the contractor’s designated representative. This paragraph does not apply to a person who subject to and complies with A.R.S. § 12–1365.
As with any substantial agreement, we urge you to obtain the advice of legal counsel. We are happy to speak with you regarding any such contract.