Renovation contract: what it must include

Why a written contract

An explanation by a sworn advocate on LV portāls states that an oral contract for work can be valid, but the customer has to prove the contract and the payment, for example with a receipt or correspondence. If the work is done badly, it is hard to prove without a written agreement what quality and scope were required.

The Construction Law defines the party carrying out construction work as a construction company that builds for its own needs or under a written contract, or as a builder. If you later need an independent expert's opinion on quality, a written contract with an estimate lets you compare what was done with what was agreed.

Renovation contract: template in points

This is not a legal document but a list of points that a renovation contract must contain. A lawyer can prepare the exact text for each situation.

1. Parties: the customer and the contractor, with name, registration number and contact person.
2. Property: the address of the apartment and the rooms where the work takes place.
3. Job list: the estimate as an annex, with the work, quantities (m², units) and unit prices.
4. Materials: who chooses and buys them, how they are accounted for and whether they are separate in the estimate.
5. Price: the total according to the estimate and the way additional work is calculated if the scope changes.
6. Deadline: start and end dates, the main stages.
7. Payments: the advance, if there is one, payments by stages, the final payment after acceptance.
8. Documents: who prepares the construction notice or the explanatory memorandum and who agrees the work with the building manager.
9. Acceptance: how the work is accepted, the report and the list of defects.
10. Remedying defects: how and when the contractor remedies the non-conformities found.
11. Termination of the contract: what happens if a party is late or refuses.

The job list and the estimate are the core of the contract

A dispute can start with the question of whether a job was included. So in the estimate write not just “bathroom renovation” but also demolition, waterproofing, tiling and plumbing installation, with quantities. Also write what is not included: materials, construction waste removal, documents.

If additional work comes up along the way, for example a damaged base under the tiles, agree on it in writing before it is carried out: an e-mail or message with the work and the price is already proof. On the estimate: renovation estimate.

Deadline and delays

The Consumer Rights Protection Law provides that if no deadline has been agreed, the service is provided within a reasonable time. If the provider is late, the consumer gives an additional deadline, and if that is not met either, can withdraw from the contract; the money must be refunded within 14 days. A specific date in the contract makes this process simple.

When writing the deadline, take into account the drying of materials and the documents. Work with an explanatory memorandum may only start after the building board's mark. More: how long an apartment renovation takes.

Consumer rights if the work does not match the contract

• A claim for non-conformity with the contract can be made within two years of receiving the service; it must be submitted within two months of discovering the non-conformity.
• First the consumer demands that the non-conformity be remedied free of charge. If that is not possible, they demand a price reduction or a refund; the right to compensation for losses remains.
• The consumer can ask the Consumer Rights Protection Centre (PTAC) or the Consumer Disputes Resolution Commission to assess the provider's conduct.
• An independent expert's opinion can be evidence of quality.

These are rights given by law, not any company's promise. In the contract they can be supplemented with a specific procedure for remedying defects.

What to check before signing

• If the company provides construction work, it is in the Register of Construction Merchants: Register of Construction Merchants.
• The estimate is attached and contains quantities.
• The size and terms of the advance are clear: renovation advance payment.
• For work on common property (risers, radiators, load-bearing walls) the association's consent is provided for, and the work is agreed with the building manager.

Price in the contract

Prices are for labour. Materials are calculated separately in the estimate. Write unit prices in the contract, not only the total. For example, a 1-room apartment of 33 m², full renovation: 33 × €280 = from €9,240 (labour); if the floor area is specified more precisely, the total can be recalculated. We agree the price and the list of work before the job starts.