How to Write a Home Improvement Contract

If you are having any work done to your home, make sure you have a contract. A contract is a legally binding document that lays out exactly what you want, what the contractor agrees to do, for how much, and by when. It also protects you both should a dispute arise. 

A home improvement contract, sometimes called a remodeling contract, serves as a legal agreement between a property owner and a general contractor. General contractors provide these contracts to customers when performing construction work. 

The document addresses the legal scope of what covers the home’s improvement, the time frame for the job’s completion, compensation, and any other matters that are relevant to the work itself. Even for a small job such as painting a single room in your home, it’s best to consider using a home improvement contract so you have legal protection in the event things do not go as planned. 

You are more than welcome to write your own home improvement contract, whether you are the owner or the general contractor. There are several ways in which you can do this.

If you use a template, you can enter necessary data like the names and addresses of all parties involved, the budget, and the time frame and then print a boilerplate form. However, if you rely on a poorly drafted contract, it might include sections that don’t make sense for the scope of your project, and if a customer or contractor disputes the work and goes to court, they can use anything, no matter how poorly written, against you.

Alternatively, you can write an individual contract from scratch, which might provide better results. For this, you want to start by gathering any relevant information necessary for the job. There are online templates with relevant sections you want to include based on the job type. 

Again, hiring a contractor to paint a single room in your house might not necessitate as many sections for materials or storage on site as someone remodeling the first floor of their home. You can speak with a construction lawyer if you are unsure about any specific provisions you want to include in your contract. 

Make sure you print out enough copies of your completed contract and have all parties involved sign with blue ink. Send hard copies and digital copies to all parties. 

Larger construction companies typically hire lawyers to draft their agreements directly, which can help save the cost of future litigation and disputes. As a homeowner you might consider working with an attorney if you are having an especially large home remodel or construction job completed in the future. 

Home improvement contracts should function as an outline for your project. So, the key parts of a home improvement contract start with the scope of the work. This outlines what service to include and exclude. It will also explain where the crew will store materials, what tools, materials, and supplies the crew will use, and what the cleanup should involve.

The second part of a good home improvement contract is licensing and insurance from any contractors with whom you work. The license number should be visible on any and all communications you have between you as a property owner and the general contractor, including a proposal, oral agreement, contract, and estimate. If they have liability insurance, that information should also be listed in the agreement.

You should include any warranties, any information identifying subcontractors the general contractor will use, as well as the relevant start and end dates. A separate section should be about the payment whether you are going to make progressive payments at the start of the project and at corresponding milestones throughout or at the end of the project completion.

Include inspection provisions that stipulate the inspections that will take place (by planning commission or building department) before the work starts, during the work, and after the work is completed and who will be responsible for those document filing fees and inspection fees. Should you need it, you can also include other clauses based on where you live such as a:

The home improvement contract will start simply enough with language like the following:

This contract can go on to include many other applicable sections, but the above example gives an idea of what type of legal language and instructions are in this type of contract. 

Overall, knowing when to use a contract for home improvement can help save you as the general contractor or homeowner. Knowing how to write a home improvement contract can at least save you time and money by drafting something with most of the things you need like information on the payment, date, inspection, fee, clause, etc. before you bring it before an attorney for review. An attorney is not necessary for this type of work, but it might be best to have them look things over nonetheless.