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Residential Construction Contract

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The contractor

For a business, use its registered name, including "LLC" or "Inc." if it has one.
Used for written notices under the agreement.

The owner

For a business, use its registered name, including "LLC" or "Inc." if it has one.
Used for written notices under the agreement.

The project

Say what will be built, removed, or replaced, room by room if it helps. Anything not described here is not part of the contract unless it is added by a change order.
Attach them to the signed contract. If you have none, the description above is the whole scope.
Most remodeling work that touches structure, plumbing, electrical, or gas needs a permit. The contractor usually applies for it; the fee can be included in the price or passed through at cost.

License, insurance, and supervision

Many states require contractors who do home improvement work to be licensed or registered and to state the license number in the contract, often once the price is above a dollar threshold. The owner should check the number with the state contractor licensing board before signing. Leave blank if the contractor has none; the contract will say so.
The coverage limit on the contractor's policy. Ask for a certificate of insurance; the contract lets the owner request one.
The person on the contractor's side the owner talks to about the work. It can be the contractor personally.

Materials and allowances

One item per line. The contractor supplies everything else. The contractor's warranty does not cover owner-supplied items.
An allowance is a budgeted amount for an item the owner has not yet chosen, such as tile or light fixtures. If the item costs more or less than the allowance, the price is adjusted by change order. Enter 0 if there are none. Up to 5.

Schedule

The day work is expected to begin on site. The contract says "on or about" this date.
Local noise rules or a homeowners association may limit hours; check them before you choose.
Leave blank and the contract states that no penalty applies to delay. If you enter an amount, the contractor credits it to the owner for each day substantial completion runs past the completion time, after a grace period, as an agreed estimate of the owner's loss rather than a penalty.

Contract price

A fixed price covers the described work for one amount. Cost-plus means the owner pays the contractor's actual costs plus a fee, usually with a cap.

Payment schedule

Many states limit the deposit a contractor may collect on a home improvement contract before work starts, and some require specific notices or cancellation rights once the price is above a dollar threshold. Check with your state contractor licensing board before signing. Leave blank for no deposit.
Payments due when a stage of the work is reached, such as "demolition and rough-in complete" or "drywall finished." Enter 0 if the whole price is paid at the end. Up to 5.
Counted from the day the owner receives the invoice. Enter 0 for payment on receipt. The same period applies to the final payment after final completion.

Change orders

Every change still needs a written change order signed or accepted by email by both sides before the work is done.

The owner and the work site

Late choices of tile, fixtures, or colors are a common cause of delay. The schedule is extended when a decision takes longer than this.
"Yes" adds rules on dust barriers, securing the home each day, and bathroom access.

Completion and warranty

12 months is common for remodeling work. Manufacturer warranties on products pass to the owner separately.
The punch list is the written list of small items still to be finished or corrected after the walkthrough.

Ending the contract

"Yes" lets the owner stop the project on written notice, paying for work done, materials that cannot be returned, and demobilization. "No" means the contract ends early only for a breach that is not fixed.
Mediation is a meeting with a neutral third person who helps both sides settle. It does not stop either side from filing a lien or seeking urgent court relief.
For example, where the crew may park, a gate or alarm code arrangement, or a specific product both sides agreed on.

Governing law

Usually the state where the property is. That state's contractor licensing board is also the place to check for notices, license disclosures, or cancellation rights that home improvement contracts there must include.

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