Once you’ve found a contractor who meets your needs and price, it’s time to enter into a formal agreement to work together. 

The contract will describe precisely what is required, lay out payment schedules and define other key parameters of the project. 

Crafting a successful home improvement contract hinges on details and clarity. Work shouldn’t commence until there is a shared vision, and these agreements provide the framework. 

CONTRACT MUST-HAVES 

Angie’s List, a website specializing in home services, outlines the following 10 must-have items for home improvement contracts: 

1. A job description that outlines the project in detail. 

2. Dates for start and completion that create a reasonable timeline. 

3. Terms that tie payment to completion milestones. 

4. Authorization that makes your contractor responsible for securing necessary
permits.

5. Specific penalties for missed completion dates.

6. Clear procedure for work orders and any changes. 

7. A detailed outline of all costs and needed materials.

8. A copy of the contractor’s proof of licensure, bonding and insurance.

9. A termination clause outlining how either the homeowner or contractor may exit the agreement without penalty.

10. A lien release that will protect the homeowner from liability should the contractor fail to pay their staff.

YOUR PAYMENT TERMS 

The amount your contractor asks for as a down payment may vary, since there is no fixed rule governing these transactions. 

To ensure compliance with local regulations, research laws in your state to determine whether limits are in place. Be prepared to drive a hard bargain. Keeping the down payment as low as possible can serve as an incentive for your contractor to complete the project more quickly.

WRITE DOWN EVERYTHING 

Request a written contract from your contractor, even if it is not mandatory in your state. This will help establish clear definitions for the project, ensuring that both parties are on the same page. You can both follow the specified contract items, keeping track of key timelines meant to ensure efficiency and progress. Whenever possible, try to be present so you can monitor the work being done. Schedule regular meetings to discuss progress. By actively participating as a homeowner, you can minimize surprises along the way.