Any venture is by definition risky.  Some endevours are more so than others.  Where do home renovations fall in the spectrum?

The larger and more complex the anticipated work, the more inherent risk.  Undefined risk, not an oxymoron, can have a huge negative impact on your project.  When undefined risk meets reality, it surfaces as a surprise.  As previsously suggested, Surprise = Cost, therefore, Risk = Cost.

Well drafted contracts define and allocate risks to the party best able to deal with it.  There is a premium to have a contractor assume risk and you will pay for the pleasure of not having to worry about a specific risk event.

Who do you think ends up shouldering the risk without a contract?  My guess it’s . . . YOU!

- Frank Soellig