We are in the process of building an ADU addition. Home Improvement Contracts require that start and end dates be provided. They also require specified dates for progress payments. How can I add the dates for progress payments if I don't know how long it will be until we get the necessary permits to begin work? Is there a seperate contract I can sign that guarantees we will get the job once we sumbit the applications for permits? Thank you
You can and should have the HIC signed before you submit for permits. Just estimate the date you will get permits and use that as the start date, and calculate progress payment dates from there. Your contract should also have a clause for permissible delays, including any delays in obtaining the permit that are outside your control. If permissible delays occur, its important to keep a good paper trail documenting the delay days, the reason for the delay, and providing the owner with updated schedules as needed. You would want to incorporate the delay days into a change order, and get the owner's signature on the change order, then it becomes a part of the contract. You can do this even if it is a no cost change order, however, it is appropriate to seek you increased general conditions if any occur as a result of permissible delays. If you have any doubts, you should retain a qualified construction attorney to review your HIC template and ensure it sompliant with Business and Professions Code Section 7159.