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PREVENTING AND RESOLVING DISPUTES WITH A HOME IMPROVEMENT CONTRACTOR
May 20, 2009

MILWAUKEE, WI - When remodeling, the most important document a homeowner should have is a well-written contract between the homeowner and the Remodeler.  To ensure the project runs smoothly and has a successful outcome, the Milwaukee/NARI Home Improvement Council, Inc., the area's leading home improvement and remodeling industry resource for more than
47 years, offers advice about a properly worded contract and resolution should a dispute arise.

Before a project begins, a written contract should be in place and detail the following:

• Legalities such as the contractor's name and address, homeowner's name and address, and the project location;
• The contractor's and homeowners' responsibilities (start and completion dates, protection of household goods, survey and utility costs, hook up fees, temporary power poles, port-a-potties, dumpster fees, and job site clean-up)
• Construction plans approved and identified within the contract;
• Provision in the event of unforeseen problems such as asbestos or other hazardous materials found within the house;
• Material specification (size, color, weight, model, brand name, quantity, and product);
• Financial terms (the price of the project, payment schedule, and cancellation penalty);
• Terms and conditions (full or limited warranty coverage, insurance covering workman's compensation, property damage and personal liability, change orders and a contractor's lien right).                

The State of Wisconsin also requires the inclusion of the "Contractors Right to Cure," which outlines procedures on how to deal with situations such as defects or incomplete work. These procedures include the provision that at least 90 working days before taking legal action against a contractor for an alleged defect in construction, the homeowner must provide a written notice to the contractor, who then has the opportunity to offer to repair or settle the claim, inspect the defect, or reject the claim.

If the dispute is not resolved in this manner, Milwaukee/NARI offers a "Grievance Procedure" - the goal of which is to resolve the homeowner's concerns with a Milwaukee/NARI member in a timely manner, utilizing mediation and binding arbitration.

To proceed with the Grievance Procedure, the first step for a homeowner is to contact the Milwaukee/NARI office to learn more about the grievance procedure and, if necessary, begin mediation.  Often, a third party's impartial intervention can solve the problem.  However, if this does not work, then the homeowner needs to file with Milwaukee/NARI a formal written list of concerns including all written contracts and documentation for a review process by the Association's Ethics Committee.

Using an industry standards manual as a guideline, an ethics committee mediator will try and resolve the situation for the homeowner and contractor.  If the concerns are unable to be resolved through formal mediation, then the process moves to binding arbitration.

Binding arbitration includes a hearing before the entire Milwaukee/NARI Ethics committee with both parties present, agreeing to abide by the committee's decision.  Both parties pay a fee and any money due on a project is placed in escrow pending the outcome.

The Milwaukee/NARI Ethics Committee has always been committed to resolving customer concerns in a logical and timely manner," said Tom Weiher, CR, CKBR, Milwaukee/NARI president.  "All Milwaukee/NARI members pledge to subscribe to the Association's code of ethics, which includes high standards of honesty, integrity and responsibility in the conduct of business."

The Milwaukee/NARI Home Improvement Council was chartered in July 1961, as a Chapter of the National Home Improvement Council.  In May of 1982, the National Home Improvement Council merged with the National Remodelers Association to form NARI - the National Association of the Remodeling Industry.

The Council's goals of encouraging ethical conduct, professionalism, and sound business practices in the remodeling industry have led to the remodeling industry's growth and made NARI a recognized authority in that industry.  With over 900 members, the Milwaukee Chapter is the nation's largest.

For more information or to receive a free copy of an annual membership roster listing all members alphabetically and by category, and the booklet, "Milwaukee/NARI's Remodeling Guide," call (414) 771-4071