Remodeling Contract Checklist

Frequently Asked Questions

What should a remodeling contract include?

At minimum: the parties and license number, a detailed scope with written exclusions, the total price and pricing method, every allowance with its dollar amount, a milestone payment schedule, a written change order process, a concealed conditions clause, warranty terms, and the homeowner's cancellation rights. The clauses that most often prevent disputes are the exclusions, the allowance amounts, and the requirement that change orders be signed before work proceeds.

Is a remodeling contract legally required?

In most states a written contract is required for home improvement work above a fairly low dollar threshold, and many states also mandate specific content such as the license number, a cancellation notice, and limits on the deposit you may collect. Requirements vary considerably by state, so confirm your own state's home improvement statute — this checklist is a starting point, not a substitute for that.

How much deposit can a remodeling contractor collect?

It depends on the state, and several impose hard caps expressed as a percentage of the contract price or a fixed dollar figure. Exceeding a statutory deposit cap can carry penalties and can undermine enforceability of the contract, so this is one of the few areas where a generic template is genuinely risky. Check your state's limit before setting a payment schedule.

What is a concealed conditions clause?

It is the clause covering what happens when work exposes something nobody could have seen at bidding — rot behind tile, undersized framing, obsolete wiring, or unpermitted prior work. A good clause defines how the discovery is documented, how the additional work is priced, and that the schedule adjusts. Without it, the default expectation is that you absorb the surprise.

Should change orders be part of the original contract?

The process should be, even though the individual change orders are not. Establish in the contract that any scope change requires a written, priced, signed authorization before work proceeds. Setting the expectation at signing makes it a routine step later; introducing it for the first time in week six makes it feel adversarial, which is when contractors tend to do the work for free rather than have the conversation.