Residential Contractor Terms and Conditions Agreement

What a good one includes

• A detailed mechanism for change orders that requires written, signed consent and upfront pricing before any extra work begins.
• A strict payment schedule linking specific payments to project milestones or calendar dates, including clear terms for late fees and work stoppage.
• Clauses defining the homeowner's responsibility to provide clear site access, utilities, and a safe work environment free of debris or pets.
• Protection against project delays caused by permitting holdups, weather, supply chain disruptions, or other factors outside your control.
• A limited warranty clause detailing exactly what your craftsmanship covers, how long it lasts, and exclusions for pre-existing conditions or homeowner-supplied materials.
• A clear dispute resolution path, requiring mediation or binding arbitration in your local jurisdiction before anyone files a lawsuit.

Common mistakes to avoid

• Relying on generic internet templates that fail to address state-specific residential contracting laws and consumer protection regulations.
• Performing additional handshake work without securing a signed, written change order first.
• Failing to clearly define what constitutes substantial completion of the project, which often leads to clients withholding final payments over minor punch-list items.
• Neglecting to explicitly state who owns leftover materials on the job site, which can lead to tense disputes with homeowners at the end of a project.

Frequently asked questions