In the first part of this series (October 2013), I explained what a contract is, how to draft and interpret contracts, how bad contracts can lead to collections nightmares, and the importance of revisiting contracts on an annual basis to confirm that they comply with new law. In the second part of this series (December 2013), I explained “home improvement” laws, some of the special rules that apply to contracts for residential work, and the most valuable legal parts (MVLP’s) of a restoration contract. In this part, I show how a contract can be a vital risk management tool.
Covering your backside is as much art as it is science. Knowing the law is not enough. It requires an understanding of how restoration projects play out and the obstacles commonly faced by restorers. Drafting an enforceable restoration contract that provides good protection to the restorer requires a series of delicate judgment calls.