Home Renovation Contracts: What to Include Before Work Begins
A home renovation contract is your primary protection against cost overruns, delays, and shoddy work. Taking time to review and negotiate the terms before work begins is far easier than resolving disputes after your walls are open.
Essential Contract Provisions
- Detailed scope of work: Include specific descriptions of work to be done, materials and brands to be used, and quality standards. "Renovate kitchen" is not enough. Specify cabinet type, countertop material, appliance models, tile selections, and finish details.
- Total price and payment schedule: Use a fixed-price contract when possible. Payments should be tied to completed phases (demolition, rough-in, finishes, final walkthrough). Reserve 10-15% as a final payment contingent on satisfactory completion.
- Permits and inspections: Specify that the contractor is responsible for obtaining all required building permits and scheduling inspections. Work done without proper permits can create problems when selling your home.
- Start and completion dates: Include specific dates and what constitutes excusable delays (weather, permit delays, material backorders) versus inexcusable delays.
- Change order process: Require written change orders with pricing approved before any extra work begins. Verbal agreements for changes are a common source of disputes.
- Cleanup and debris removal: Specify that the contractor handles daily cleanup and final debris removal, including dumpster costs.
Red Flags
- No written contract or a contract on a single page with vague terms
- Requests for more than 15% upfront before any work starts
- Contractor discourages permits to "save money"
- No timeline or completion date specified
- Contractor not licensed, bonded, and insured in your state
When to Consult a Lawyer
For renovations exceeding $15,000-$20,000 or involving structural changes, consider having a construction attorney review your contract. State laws on contractor licensing, lien rights, and homeowner protections vary significantly.
This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance specific to your situation.