Homeowner Guide
Contractor Contract Checklist: 25 Must-Have Clauses
A good contract protects both parties. Use this checklist to ensure your agreement covers everything before signing.
Quick Answer
Your contract must include: detailed scope, total price, payment schedule tied to milestones, timeline, materials list, change order process, warranties, permit responsibilities, and dispute resolution. Never sign a vague contract.
Basic Information
Both parties: homeowner and contractor’s legal business name, addresses, phone numbers, license number.
Where the work will be performed (if different from homeowner address).
When the agreement is signed by both parties.
Scope of Work
Specific tasks, not vague descriptions. “Kitchen remodel” is too vague. List every element: cabinets, counters, flooring, electrical, plumbing, etc.
Explicitly state exclusions to prevent misunderstandings.
Reference attached drawings, specs, or allowances as part of the contract.
Materials
Brand names, model numbers, colors, quantities. “Granite countertops” is vague; “Level 3 Cambria Quartz, Brittanicca” is specific.
What happens if specified materials are unavailable? Require written approval for substitutions.
If using allowances (budget for selections made later), specify amounts and what happens if you exceed them.
Timeline
When work will begin. “As soon as possible” is not acceptable.
When work will be substantially complete. Include “time is of the essence” language if schedule matters.
Key dates for major phases. Ties to payment schedule.
What happens if delays occur? Distinguish between contractor delays and excusable delays (weather, permits).
Payment Terms
Fixed price or cost-plus? If cost-plus, what’s the markup percentage?
Tied to milestones, not dates. Example: 10% deposit, 25% at rough-in, 25% at drywall, 25% at finish, 15% at final.
What must happen before final payment? Punch list completion, final inspection, lien waivers.
Protect Your Final Payment
Hold 10-15% until you’re 100% satisfied and all punch list items are complete. This is your leverage to ensure quality work.
Change Orders
All changes must be in writing, signed by both parties, with pricing, before work proceeds.
What percentage markup applies to change order work?
Warranties & Protection
How long does the contractor warranty their work? 1-2 years is standard.
Manufacturer warranties should transfer to homeowner.
Contractor maintains general liability and workers’ comp throughout project.
Contractor pulls and pays for all required permits.
Dispute Resolution
Mediation before arbitration or litigation. Saves both parties time and money.
Right to cancel within 3 days (required by law in most states for home solicitation).
How either party can terminate the contract and what happens to payments.
Never Sign a Vague Contract
If the scope says “kitchen remodel” without specifics, you’re asking for disputes. Take time to add detail. A few hours now prevents months of problems later.
Planning a Home Project?
Use our free calculators to estimate costs and understand fair pricing.
Related Homeowner Guides
Free for Homeowners
Get instant cost estimates with satellite measurements before hiring a contractor.
Get Free Property Report