This form is designed for use between Framing Contractors and Property Owners and may be executed with either a cost plus or fixed fee payment arrangement. This contract addresses such matters as change orders, work site information, warranty and insurance. This form was specifically drafted to comply with the laws of the State of Washington.
Washington Framing Contract for Contractor
Category:
State:
Washington
Control #:
WA-00462-2
Format:
Word;
Rich Text
Instant download
Description
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FAQ
If the contractor requests a large sum of money before work has begun, Mozen says you should ask specifically what types of work or materials those payments are covering.Contractors sometimes have other motives, other than purchasing materials, when they ask for large amounts of money in advance, Fowler says.
Step 1: File Suit. Unfortunately, there is no simple claim process. Step 2: Serve L&I. Under RCW 18.27. Step 3: Show the Surety. This step is not mandatory, but extremely helpful. Step 4: Obtain Judgment. Step 5: Collect Disbursed Funds.
Excise tax reporting: Gross receipts from prime contracting on a custom construction job are taxable under the Retailing B&O tax classification and are subject to retail sales tax unless a specific exemption applies.
Avoid companies that require an upfront deposit of more than 10 percent. Try to include language in the contract that holds back a percentage of the total price, called a retainage, until you're sure the work was done well. A 10 percent retainage is common for residential remodeling work.
A: It's not uncommon for contractors to ask for a down payment up front to secure your spot on their schedule or purchase some of the job materials in advance. Asking for more than half of the project cost up front, though, is a big red flag.I recommend tying payments to progress made during the job.
You shouldn't pay more than 10 percent of the estimated contract price upfront, according to the Contractors State License Board.
Estimates, generally, must be professionally reasonable. A 10-20% overage might be considered reasonable, especially if the contractor discovered issues along the way that he couldn't have been aware of initially (for example, mold or flooding).
Independent contractors must register with the Department of Revenue unless they: Make less than $12,000 a year before expenses; Do not make retail sales; Are not required to pay or collect any taxes administered by the Department of Revenue.
You need a license if you meet one or more of the following criteria: Your business requires city and state endorsements. You are doing business using a name other than your full name legal name. You plan to hire employees within the next 90 days.