Roofing Contracts 101: Everything About Roof Replacement & Repair Contracts
All Weather Roofing
So you’ve made the decision to get a new roof for your home before the rainy season starts. You’ve picked out a trusted company with affordable roofing contractors who have a reputation for doing excellent work and providing good customer service.
What’s the next step? What paperwork is involved?
The roofing contractor or his HIS salesperson will look at your roof, take measurements, and find out what type of roofing materials you want for your new roof. Then he will create a contract for you to sign that includes the details of your roofing project. The roofing contractor or his salesperson will also sign the contract.
What is a roof replacement (reroof) contract?
The contract is a legal agreement between you and the contractor that documents the scope of your roofing project and the price you will pay.
Getting things in writing is always a good idea to prevent misunderstandings and to make sure you and the contractor agree on the details of your roofing project.
In California, there are several legal requirements for roofing contracts (generally referred to as “home improvement contracts”). You’ll want to make sure that your roofing company includes all of these requirements in your contract.
If you are like most of us, you don’t look forward to having to read the details of contracts or other legal documents. You wish you could just sign the contract and move on without having to wade through the details.
But never fear, this article will walk you through a typical roofing contract item by item.
That way, when you read your roofing contract you’ll know exactly what you’re agreeing to. You can also make sure the contractor didn’t forget to include important details in the roofing contracts.
What’s included in a roof replacement contract? Here’s a quick checklist:
Roofing Contractor Information This includes the contractor’s business name, address, phone number, and license number (roofing contractors are licensed by the California Contractors State License Board).
Salesperson Information This is the salesperson’s name and his Home Improvement Salesperson (HIS) registration number (registered by the California Contractors State License Board).
Description and Scope of the Project This is a detailed description of the project scope, including items such as the materials and labor required for your new roof, removing and disposing of the existing roof, arranging for permits and inspections, and a warranty for any faulty workmanship. The roofing product being installed should be specified, especially when you have requested a certain product.
Contract Price This is the total contract price with the amount in dollars and cents. The price includes all of the items listed in the “Description and scope” section of your contract.
Down Payment Amount On a residential project, California law permits a down payment prior to the project start of either $1,000 or 10 percent of the total contract price, “whichever is less.”
Progressive Payment Schedule The contract may specify payments to be made throughout your roofing project that correspond to specific work or milestones that have been met. For example, when your new roofing materials are delivered to your home, payment may be due. NOTE: No payment except the down payment should be made before the item in your payment schedule is completed (e.g., the specified materials have been delivered or the specified work has been done).
Dates The contract should specify the Approximate Start Date and the Approximate Completion Date for your roofing project.
Insurance The roofing contracts should describe the insurance that the contractor carries, such as general liability insurance. Workers' compensation insurance is required for roofing contractors.
Mechanics Lien Warning This explains the circumstances that allow a contractor to record a mechanics lien on a property, and how a homeowner can protect themselves from this situation. The primary reason for mechanics liens is to protect the contractor from nonpayment.
Three-day Right to Cancel Notice This notice explains what you can do if you decide within three days that you do not want to move forward with your project. The three-day period begins when the roofing company gives you a copy of the contract that both you and the company salesperson have signed. NOTE: If you are 65 or older (and are the one who signed the contract), you have a five-day “right to cancel” your roofing contract.
Roofing companies will not start your roofing project until after the “right to cancel” period has ended.
But I have a roof leak and I can’t wait three days to get it repaired!
Not a problem. If you need an emergency repair and you call the roofing company to initiate the repair work, your three-day right-to-cancel period is waived. That means that the roofing contractor can begin the work as soon as you both agree on the contract terms and sign the contract.
In this case, the contract amount for the materials and labor cannot exceed $750. This type of contract is called a service and repair contract. No down payment will be required, and you’ll pay for the work after it is completed.
Roofing contractors wish they had x-ray vision, but…
When you replace your roof, your roofing contractor will most likely be doing a “tear off,” which means that the roofers will remove your old roof materials before installing your new roof. After the old roof is removed, the roofing contractor sometimes finds that there is underlying damage such as dry rot that must be repaired before installing your new roof.
What happens then? When damage is found the contractor will estimate the cost of the repairs and create a change order. The change order will describe the scope of the extra work, the additional cost to you, and any adjustments the change order will have on your payment schedule.
The change order will be signed by both you and the contractor. A change order becomes an addendum to your initial project contract.
If you haven’t found a good roofing contractor yet, read on…
Your roof replacement or reroof project will be far less stressful if you hire an experienced roofing contractor with a good reputation.
For tips on how to choose a professional roofing contractor, see our blog article Tips for Choosing the Best Roofing Contractor for Your California Roof Replacement (Residential & Commercial).
Before long you will have a beautiful new roof. Then it will be time to kick back and enjoy. Just picture yourself in your backyard with your family and friends—cold drinks, lots of laughter, and your friends telling you how great your new roof looks!
All Weather Roofing.
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