Residential Construction Service Contract

What a good one includes

• A highly detailed, line-itemed scope of work that explicitly lists what materials and tasks are included and, equally important, what is excluded from the project.
• A clear milestone-based payment schedule tied to verifiable stages of completion rather than calendar dates alone.
• A formal change order clause requiring written authorization and agreed pricing before any deviation from the original plan begins.
• A realistic timeline with defined allowances for weather delays, material shortages, and permit approval bottlenecks.
• A specific warranty and correction period detailing how defects will be addressed and the exact duration of your liability post-completion.
• A structured dispute resolution clause outlining a step-by-step path from mediation to binding arbitration before anyone heads to court.

Common mistakes to avoid

• Allowing verbal agreements for project changes without securing a signed, written change order first.
• Using vague descriptions of materials or finishes, which leads to client unmet expectations and budget overruns.
• Failing to include a clear termination clause that defines how either party can legally exit the contract if things go wrong.
• Relying on generic internet templates that omit state-specific builder disclosures or consumer protection acts.

Frequently asked questions