As a customer entering into a car restoration contract, several beneficial clauses can help protect your interests and ensure a successful restoration project. A restoration to high standards on just about any car can begin at about $50,000 and can easily climb into the millions on many exotic cars. Most of the cars that we drive will be in the $50,000 – $100,000 range, not including the cost of the car. This is a substantial amount of money, yet I regularly hear from people who contact me when they discover that they have written out $150,000 in checks for a restoration that was supposed to cost $50,000. And the worst part is that it has been two years since work began and the car is still not even back on the frame.
There is no way to guarantee that any restoration will be completed on time, and on budget. But without a written contact, I can guarantee it will not. This is the case even with an honest shop, and a customer willing to keep the cash flowing. That is because a restoration is a complicated undertaking, and unless things are reduced to writing, the expectations of both the customer and the restoration shop will be different. These expectations can apply to the payment schedule, the work schedule, and the level of quality of the work to be performed.
Here are some key clauses in a car restoration contract and why they are beneficial:
Scope of Work
This clause defines the specific scope of the restoration project, including details such as the extent of work to be performed, the parts to be restored or replaced, and any modifications or upgrades requested by the customer. A clear and comprehensive scope of work helps prevent misunderstandings and ensures that both parties have a mutual understanding of the project requirements.
Timeline and Milestones
This clause outlines the expected timeline for the restoration project, including key milestones and deadlines for completion. Having a timeline helps keep the project on track and allows the customer to monitor progress and anticipate project milestones. It also provides recourse in the event of delays or unexpected setbacks.
Cost and Payment Terms
This clause specifies the total cost of the restoration project, including any upfront deposits, progress payments, and final payment terms. It should also outline the payment schedule, invoicing procedures, and any penalties for late payments. Clear payment terms help establish expectations and prevent disputes over payment issues.
Warranty and Guarantee
This clause outlines any warranties or guarantees provided by the restoration shop for the work performed and parts installed during the restoration project. A warranty ensures that the customer has recourse in case of defects, errors, or failures that occur after the completion of the project. It provides peace of mind and reassurance that the restoration work is of high quality and will stand the test of time.
Change Orders and Variations
This clause establishes the procedure for handling changes or variations to the original scope of work during the restoration project. It should specify how changes will be documented, approved, and priced, as well as any impacts on the project timeline. Having a clear process for change orders helps prevent scope creep and ensures that both parties agree on any modifications to the project.
Dispute Resolution
This clause outlines the process for resolving disputes that may arise during the restoration project, such as disagreements over project scope, quality of workmanship, or payment issues. It may specify methods of dispute resolution, such as mediation, arbitration, or litigation, and the applicable jurisdiction for resolving disputes. Having a dispute resolution clause helps provide a framework for resolving conflicts quickly and efficiently, minimizing the risk of costly legal battles.
Finally
Expect the restoration to go over budget to some degree, perhaps 10%. After all, we are talking about cars whose ages are measured as a percentage of a century and the truth is that a restoration shop will not really know the true extent of the work to be completed until they disassemble the car. Expect it to take longer than planned by a few months. Expect to make scheduled visits to verify that the work that you are getting billed for is getting done. And expect to pay those bills on time and in full if the work is progressing as expected. You will not be disappointed with your experience if your expectations are realistic.
Overall, including these beneficial clauses in a car restoration contract helps protect the interests of both the customer and the restoration shop, promotes transparency and accountability, and ensures a successful and satisfying restoration experience for all parties involved.
