Who would have thought that the trade association for the Remodeling Industry aka NARI doesn't have a standard home remodeling contract for each State. I was actually told by NARI headquarters that each State has different requirements and that I should contact the NARI Chapter nearest me for assistance.

First time remodelers may find the lack of a standard contract disconcerting. In contrast, the National Association of Realtors and their state associations have done a splendid job of helping to standardize real estate contracts. Sure you have to still read them, but there is some comfort in using a contract that millions of people have used. Also, there is a standard form for everything, from home and pest inspections, financing, rent backs, radon testing, etc.

NARI should do the same for remodeling contracts. It would help consumers and their members as well. NARI caveats the guidelines by saying that their advice is no substitute for legal advice. In other words, "we're not lawyers and you should consult one to eithe look at a contract or have one draw one up for you."

Remodeling Contracts- Details Matter
Remodeling contracts are quite detailed. In addition to the information suggested by NARI under what should go into a remodeling contract, construction drawings and schedules that specify sizes, manufacturer, and finshes are required. Homeowners and the contractor have to sign and date the contract. Homeowners also have review and sign off on the construction drawings and schedules since they are part of the contract. You may also want to review or have some review your construction drawings if you are not detail oriented or don't have the time.

Keep the following things in mind regarding remodeling contracts:

1) If something is not written in the contract, it does not not exist.
2) A contract will not ensure that you will not have problems. It will help you and the contractor to work through them though.
3) The contract defines key terms like "substantial completion."
4) The contract will describe your obligations as well as the contractors for the project.

Many people use AIA Contracts
The closest thing that we have seen for a standard home remodeling contract is the American Institute of Architects (AIA) contract. If you use an AIA architect, she will probably suggest that you use this contract since it contains the necessary clauses, definitions and detail that improve the chances of a successful project. Of course you could pay a lawyer to prepare a contract specifically from scratch for your project.

You can still use an AIA contract even if you are not working with an Architect. All AIA contracts are available from AIA's local distribution centers and normally will cost about $10. You just have to find the specific contract that is pertinent to your needs.

To use the AIA contract, you will have to strike out every place in the contract where an architect is mentioned. By going over the contract and doing this, you can quickly see what the role of the architect is. These duties have to be assumed by you or shared by a third person. Even if you do that, you may want to bring the document to your lawyer and have them look it over.

Our Experience with the AIA Contract
We used the AIA contract on one of our remodeling projects where we did not have an architect. We had big problems with the contractor and he eventually walked off the job. The AIA contract contained specific language in it that covered non-performance of duties and we were able to use it to legally terminate things and protect ourselves from this character. An attorney who looked at the contract was reasonably satisfied with it and helped us to write a letter that exercised our right to terminate the contract.

Some contractors don't care for AIA contracts. They say that they are biased against them and benefit the Architect. There may some truth in that, but the same can be said for a Real Estate Sales contract that is prepared by Realtors or for that matter the contract that your contractor wants you to use.

I think that using an AIA contract is better than using a contractor's two pager or hiring a lawyer to start from scratch. AIA claims that their contract documents are fair. In its contract documents, the AIA seeks to reflect an industry consensus, obtained from the advice of practicing architects, contractors, engineers, owners, surety bond producers, insurers,and attorneys. AIA contract documents balance the interests of all of the parties. This ensures a fair distribution of rights and duties without bias toward any one party, including the architect.

If you use the AIA contract, we think you'll be better off. However, you need to read the contract carefully and assign the duties of the architect to yourself or a third party. If you use a contract provided by the Contractor, take it to an attorney who is familiar with construction and remodeling contracts  and have it reviewed. This is good money spent to make sure you are not signing something that does not protect your interests.

Resources
1) Video on AIA Contract documents- very helpful since it describes the process of awarding a contract.
2) List of AIA Contracts for Sale [PDF]