Home renovation is an important step in creating a warm family environment. However, some renovation companies may engage in false advertising, breach of contract, project delays, and material fraud, and even some unscrupulous merchants may exploit loopholes in renovation contracts for personal gain, infringing on consumer rights. Many people may have had such experiences? When the renovation is completed, you enter your new home with great anticipation, only to find wall cracks, fallen tiles, water and electricity facility leaks, and other problems flooding in, leaving you wanting to cry.

To help everyone better protect their interests, we have specially prepared a guide on matters requiring attention in household renovation contracts. Through this guide, you will be able to understand the details to pay attention to, the terms that must be clarified, and how to avoid falling into the pitfalls of renovation contracts. Now, let us learn together about the potential risks in household renovation contracts and understand relevant legal knowledge points, so that you can be more cautious when signing contracts.

1. Principles for Drafting Renovation Contracts - Be Detailed and Specific:

Renovation contracts should include detailed information such as renovation scope, engineering quality standards, project duration, payment methods, and breach of contract liability. Before signing the contract, be sure to carefully check the contract content and fully communicate with the renovation company. Avoid vague and unclear terms that may lay hidden dangers for later cooperation.

(1) Contracts should be in written form; remember that verbal promises are not included in the contract

A resident, Xiao Li, in a certain city agreed with a renovation company to use a certain high-end brand of flooring and paid the corresponding fees. However, during the renovation process, he discovered that the renovation company actually used a lower-end brand of flooring. Xiao Li communicated with the renovation company, but the company stated that the verbal promise of high-end flooring was merely an exaggerated statement by the sales personnel, not the content of the contract.

According to Article 469 of the Civil Code: "When parties enter into a contract, they may adopt written form, oral form, or other forms." Oral contracts are also legally effective. However, oral contracts cannot fully protect the owner's rights and are highly prone to disputes. In this case, because the verbal promise was not written into the contract, Xiao Li found it difficult to rely on the verbal agreement to protect his rights. Although oral contracts are legally effective, the lack of written evidence makes rights protection difficult. Therefore, to avoid such situations, the author strongly recommends that everyone insist on written form when signing renovation contracts and clearly include all important terms and verbal promises in the contract. Only in this way, when disputes arise between both parties, can there be clear evidence to support one's rights claims.

(2) What contents should be included in household renovation contracts?

Article 24 of the Measures for the Administration of Interior Decoration of Residential Buildings (2011 Revision) issued by the Ministry of Housing and Urban-Rural Development stipulates: "The renovator and the decoration and renovation enterprise shall sign a written contract for the interior decoration of residential buildings to clarify the rights and obligations of both parties. The residential interior decoration contract shall include the following main contents: (1) Name or unit name and residential address and contact telephone number of the client and the contractor; (2) The number of rooms and construction area of the residential interior decoration, the decoration and renovation project, methods, specifications, quality requirements, and quality acceptance methods; (3) The commencement and completion dates of the decoration and renovation project; (4) The content and duration of the warranty for the decoration and renovation project; (5) The price of the decoration and renovation project, pricing, and payment methods and time; (6) The conditions for contract changes and termination; (7) Breach of contract liability and dispute resolution methods; (8) The effective date of the contract; (9) Other terms that both parties consider necessary to clarify."

Housing and construction committees or market supervision and administration bureaus in various regions have also issued some household renovation contract templates for reference. For example: "Shanghai Residential Interior Decoration and Renovation Construction Contract" formulated by the Shanghai Administration for Industry and Commerce and the Shanghai Municipal Commission of Housing and Urban-Rural Development (URL: https://cont.12315.cn/View?id=61ea328e-37f2-484c-8d83-50eb749d42df). The content of these official templates is universal and can be filled in according to actual renovation situations to protect the owner's rights. In addition, owners with conditions may sign more professional household renovation contracts with the help of professional lawyers, so that the owner's interests are fully protected.

2. Watch out for Hidden Costs! Pay Attention to Price and Change Terms:

There is a common phenomenon in the household renovation market: even if a household renovation contract is signed with a quoted price, the final execution price often exceeds the budget. Be careful of those hidden charges, be careful of those seemingly insignificant terms, which may cause you to unknowingly spend a lot of extra renovation costs!

Xiao Wang agreed with the renovation company in the renovation contract that the total project price would be 300,000 yuan, and clearly stipulated the payment method and schedule. However, during the construction process, the renovation company required Xiao Wang to pay additional costs for water and circuit maintenance work, claiming this was not included in the contract items. Xiao Wang had not originally considered that water and circuits might have problems, so this part of the cost was not specifically agreed upon in the contract. However, the renovation company raised additional costs during the construction process and pointed out that this was necessary repair work. To avoid project delays, Xiao Wang had to agree to pay the additional costs. In this case, because the contract did not clearly specify the costs for water and circuit maintenance work, Xiao Wang had to bear the additional costs.

When signing a renovation contract, we should pay attention to possible additional project costs and clearly stipulate them in the contract to avoid later disputes and cost increases. In addition, another possible situation is material cost overruns. In the contract, the renovation company may quote a fixed material cost, but in reality, if material costs exceed the budget, the renovation company may require additional payment. Therefore, when signing the contract, be sure to ensure that material cost agreements are clear and detailed to avoid unexpected cost increases. In summary, to avoid potential disputes and additional costs, we should clearly agree on the total project price, payment method and schedule in the contract, and pay attention to whether various taxes and unexpected additions are included. In addition, possible additional project costs and material cost overruns should also be clearly agreed upon to protect our interests.

3. Be Alert to Contract Loopholes, Pay Attention to Engineering Quality and Acceptance Terms:

Exploiting contract loopholes has become one of the profit-making methods for some renovation companies, such as vague contracts and not specifying specific models of building materials. Renovation contracts should clearly stipulate engineering quality standards, such as the brand, specifications, and quality of materials used. During the acceptance process, check each item of engineering quality against expectations and require the renovation company to make necessary corrections.

Xiao Li signed a renovation contract with the renovation company, clearly agreeing to use certain brands of flooring, wall paint, tiles, and other materials. However, during the renovation process, the renovation company used lower-end flooring and wall paint, and also used cheaper tiles for the walls, leading to decreased engineering quality. After discovering the problem, Xiao Li raised a rectification request with the renovation company. However, the renovation company refused to admit using lower-end materials and pointed out that the contract only specified the brand, not the specific model. The renovation company stated that they had completed the project according to the contract requirements and was unwilling to make corrections. In this case, the renovation company used vague contract terms to charge additional fees and used lower-end materials to reduce costs. This shows that when signing a renovation contract, attention should be paid to details such as the brand, model, and quality of each material, and these should be clearly agreed upon in the contract. In addition, during the acceptance process, each item of engineering quality should be checked against expectations to ensure the renovation company makes necessary corrections.

In summary, the issues of vague contract terms and "tyrant terms" in renovation contracts require consumers' attention. When signing contracts, contract terms should be carefully read, with clear specifications of material brands, specifications, and quality, and various hidden fees and contract termination terms should be carefully considered. In addition, during the construction process, acceptance should be carried out and necessary corrections made to ensure the engineering quality meets expectations.

Is everything done after renovation is completed? What matters is agreeing on clear warranty terms!

When renovating the house, Xiao Zhang signed a renovation contract with the renovation company and agreed to a one-year warranty period. Two years after the renovation was completed, Xiao Zhang discovered obvious cracking on the floor and the wall paint started to peel off. He immediately contacted the renovation company, hoping to receive free after-sales repair service. However, the renovation company rejected Xiao Zhang's request on the grounds that the warranty period had expired. Xiao Zhang was very disappointed and when reviewing the contract, found that the warranty terms in the contract did not clearly specify the specific scope of responsibility and repair methods.

The warranty terms in the contract are very important for consumer rights. When signing a renovation contract, consumers should pay close attention to details such as warranty period, warranty responsibility, and warranty deposit, and try to clearly agree on specific scope of responsibility and repair methods. If the warranty terms in the contract are vague or have loopholes, consumers can rely on relevant laws and regulations to safeguard their legitimate rights and interests.

(1) The warranty period can refer to Article 40 of the Regulations on the Quality Management of Construction Projects: "Under normal use conditions, the minimum warranty periods for construction projects are: ... (2) For roof waterproofing engineering, bathrooms and rooms with waterproofing requirements, and exterior wall waterproofing and leakage prevention, the period is 5 years; (3) For heating and cooling systems, it is 2 heating periods and cooling periods; (4) For electrical wiring, water supply and drainage pipelines, equipment installation and decoration projects, the period is 2 years. The warranty periods for other projects shall be agreed upon by the employer and the contractor. The warranty period of a construction project shall be calculated from the date when the completion acceptance is qualified." For other renovation contents besides these, it is recommended to agree on a warranty period of no less than 1 or 2 years.

(2) It is recommended that warranty responsibility include free repairs by the renovator during the warranty period; after the warranty period expires, the renovator may provide repairs for a fee (a certain amount of labor and material costs may be charged).

(3) It is recommended to agree on retaining a certain percentage of the total renovation payment as a warranty deposit (generally 5%), which will be settled with the renovator after the warranty period expires. What if the renovator runs away or fails to fulfill warranty obligations? In this case, the warranty deposit can be withheld, and a third party can be commissioned for repairs, with repair costs deducted from the warranty deposit. If the repair costs exceed the warranty deposit amount, claims may be made against them in accordance with the methods agreed upon in the contract.

4. Breach of Contract Liability:

Xiao Li signed a renovation contract with the renovation company, agreeing on the project completion time and quality requirements. However, during the project, Xiao Li found that the renovation company delayed the completion and the construction craftsmanship had obvious defects, causing a series of quality problems. Xiao Li was very dissatisfied and believed that the renovation company violated the contract's agreed project duration and quality requirements, causing great trouble and losses to his daily life. In the contract, Xiao Li found that the breach of contract liability and compensation methods for both parties were clearly agreed upon. According to the contract agreement, if the renovation company fails to complete the project on time or the engineering quality does not meet the standards, the consumer has the right to require the breaching party to bear corresponding responsibilities and claim compensation. Xiao Li decided to defend his rights and raised a claim for breach of contract liability with the renovation company. He required the renovation company to bear the additional costs caused by the delay and to rectify and compensate for the quality problems. The renovation company initially ignored this, believing that Xiao Li would find it difficult to effectively defend his rights. However, Xiao Li pointed out that the contract stipulated the method for resolving disputes, namely choosing to file a lawsuit with the people's court. Faced with Xiao Li's firm attitude and the breach of contract liability agreed upon in the contract, the renovation company finally agreed to negotiate and bore the delay costs and the rectification and compensation for quality problems. Through this case, we can see that in renovation contracts, clearly agreeing on the breach of contract liability and compensation methods for both parties is very important. Consumers should carefully read and ensure that specific details are clearly expressed before signing the contract, especially regarding agreements on breach of contract liability and compensation methods. At the same time, choosing the method and place for resolving disputes is also an important factor to consider. By clearly agreeing on breach of contract liability and compensation methods, consumers can more effectively defend their rights.

Finally, remind all resident friends to be sure to do the following before signing renovation contracts:

1. When selecting a renovation company, owners must carefully inspect its business license and relevant qualification certificates and choose merchants with good reputation.

2. Sign a standardized written contract, fully understand the contract terms, including construction scope, construction standards, material specifications, engineering quality standards, acceptance procedures, payment deadlines, etc. Contract terms should be specific, detailed, and operable.

3. Owners should fully communicate with the renovation company and clarify the expectations and requirements of both parties;

4. Corresponding written and electronic evidence should be retained. The performance cycle of renovation contracts is long and cumbersome. The renovation contract, change agreements, quotation sheets, WeChat chat records, etc. should be properly kept, and the site should be documented by taking photos and videos for emergencies.

A legally compliant renovation contract is an important tool for protecting your rights. It is hoped that the above information can help you avoid unnecessary risks and disputes during the renovation process. Wishing your household renovation a smooth and pleasant experience!