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Residential Construction Contract

Create a home improvement contract covering the scope, permits, allowances, schedule, fixed price or cost-plus, milestone payments, and warranty. Preview first.

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What this document does

A contract between a contractor and a homeowner for home improvement, remodeling, repair, or a small residential construction project such as a kitchen or bathroom remodel, a deck, a roof, or a room addition, covering the scope and plans, permits, the contractor's license and insurance, materials and allowances, the schedule and delays, a fixed price or cost-plus fee, the deposit and milestone payments, change orders and hidden conditions, the owner's responsibilities, clean-up and safety, warranty, completion, and ending the contract. It is not for commercial construction, new-home purchase or builder sales contracts, or work between a general contractor and its subcontractors, and it does not contain the state-specific notices, license disclosures, or cancellation forms that many states require in home-improvement contracts.

What it covers

  • Parties
  • The Project and the Work
  • The Contractor, Materials, and Allowances
  • Schedule and Delays
  • Contract Price and Payment
  • Change Orders and Hidden Conditions
  • Owner Responsibilities and the Work Site
  • Completion and Warranty
  • Disputes and Ending the Contract
  • Additional Terms
  • General Provisions

A template you fill in yourself from your own answers. LeaseCraft is not a law firm and does not give legal advice; for advice about your situation, talk to a lawyer.

How it works

1

Answer the questions

Plain-language questions about the people, dates and terms.

2

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Read the document built from your answers and change anything before you download.

3

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Included with LeaseCraft Annual ($19.99/year).

Questions about the Residential Construction Contract

The property and a clear description of the work, whether plans are attached, who pulls the permits, the contractor's license number and insurance, any allowances, the start date and completion time, the price and how it is paid, how change orders and hidden conditions are handled, the owner's responsibilities, clean-up and safety rules, the warranty, what counts as substantial and final completion, and how either side can end the contract.

Many states do. Once the price is above a dollar threshold, a state may require the contract to state the contractor's license number, give the owner a right to cancel within a few days of signing, include a notice about mechanics' liens, or mention a contractor recovery fund, often in specific words. This document does not contain those state-specific notices. It tells the owner to ask the contractor for any that apply and to check with the state contractor licensing board before signing.

Some states cap the deposit on a home improvement contract or limit payments to the value of work completed, and some require specific notices or cancellation rights above a dollar threshold. The questionnaire warns you when the deposit is more than a third of a fixed price, and the owner should confirm the rules with the state contractor licensing board before signing.

A fixed price gives the owner a known total for the described work and puts the risk of cost overruns on the contractor. Cost-plus pays the contractor's actual costs plus a fee, which suits projects with unknowns such as older homes; you can add a not-to-exceed cap and the contract requires weekly cost statements.

You can set up to five milestone payments tied to stages such as rough-in complete, drywall finished, or substantial completion, and the contract prints them as a table with the total. You can also hold back a percentage of each payment as retention until the punch list is done and the contractor delivers lien waivers, warranties, and inspection approvals.

The contract requires the contractor to stop work in the affected area, notify the owner, and agree a change order for the extra cost and time before continuing. Suspected asbestos, lead paint, or mold is tested and handled by a qualified firm at the owner's cost unless the contractor caused the condition.

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