8. A well-written contract should include the contractor’s name, address,
phone number and license number, if required. It also should specify:
■ A. the payment schedule for the contractor, subcontractors
and suppliers
■ B. an estimated start and completion date
■ C. the cancellation policy
■ D. how change orders will be handled
■ E. all of the above
9. A change order is a written agreement to change the work described in the
original contract. It could affect the project’s cost and schedule.
■ True ■ False
10. In most circumstances, oral contracts are as enforceable as written agreements. Oral contracts related to real property are an exception to this rule.
■ True ■ False
11. If you sign the contract in your home or at a location that is not the
seller’s permanent place of business, you have three business days to
cancel the deal.
■ True ■ False
12. You should expect to make payments when you:
■ A. sign the contract
■ B. get a regular invoice weekly, monthly or at milestones
■ C. sign a change order
■ D. order a custom-made item
■ E. all of the above
13. You should avoid making the final payment or signing an affidavit of final
release until you are satisfied with the work and have proof that subcontractors and suppliers have been paid.
■ True ■ False
14. If you get a loan for your home-improvement project, you should have the
lender make out the check to the contractor.
■ True ■ False
15. If you use your home as security for a home-improvement loan and you
don’t repay the loan as agreed, you could lose your home.
■ True ■ False
