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A home improvement contract should spell out the work and materials, the price or pricing method, payment schedule, estimated dates, contractor details, and important promises. Put any change in a written document signed by both sides before the changed work begins, with the revised cost and any payment or schedule impact. Exact legal requirements vary by state and locality, so use this as a general U.S. checklist—not a substitute for checking the rules where the property is located.
What should a home improvement contract include?
A useful contract makes it possible to tell what the contractor agreed to do, what the homeowner agreed to pay, and how the parties will handle changes. The Federal Trade Commission (FTC) recommends getting the project details in writing, including a description of the work and materials, payment schedule, estimated start and completion dates, and the contractor’s contact and license information where required. Promises made in conversation about the scope, labor, or material costs should also appear in the written agreement.
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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →There is no single nationwide contract form or universally applicable list of mandatory terms established by the sources cited here. State law, local rules, the type of project, and the circumstances of signing can affect what must be included. Treat the checklist below as a way to make expectations clear, then confirm any local requirements with the relevant state or local consumer agency.
How specific should the scope of work and materials be?
Describe what will be done, where it will be done, and what materials or specifications are included. The more clearly the written scope distinguishes included work from exclusions, the easier it is to compare bids and identify whether a later request is truly a change.
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A phrase such as “renovate bathroom” may not tell either party enough to assess the finished work. A more useful description identifies the work areas and tasks, the materials or specifications agreed upon, and any important limits or exclusions. For example, if a proposal names a particular material, product grade, or finish, make sure that detail is carried into the signed agreement rather than left only in a sales conversation. This is practical drafting guidance based on the FTC’s recommendation to describe work and materials; it is not a claim that every state requires a particular level of detail.
Record what is not included as well as what is. If a task, material, or service is outside the agreed price, state that clearly so it is not mistaken for part of the job. The contract should also capture any promises about labor or material costs that affected the homeowner’s decision.
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How should price and payments be written?
State the total price when the work has a fixed price. If the project is priced on a time-and-materials basis, identify the applicable rates and how costs will be estimated, tracked, or billed, as well as what may be charged separately. The agreement should make clear whether a figure is a fixed price, an estimate, or a pricing method that can change as work proceeds.
List the deposit and each later payment, together with the date or milestone that triggers it. A schedule should be understandable before work starts: both parties should be able to identify what work or event makes a payment due. Do not rely on a vague promise to “pay as we go” if the contract can describe the intended schedule more clearly.
The FTC recommends negotiating a reasonable down payment and cautions that some states limit down payments. It does not establish one deposit percentage for the entire country. Check the rules where the project is located rather than treating a percentage found in another contract or article as a national standard. The FTC also advises homeowners not to pay the full amount up front and not to make final payment until the work is complete and satisfactory. Keep invoices and receipts for payments.
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A payment schedule is especially important when a project has stages or when a change affects the price. If the parties approve added work, the written change order should say whether the existing progress-payment plan changes, whether an additional payment is due, and how the revised total will be paid.
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Which dates and schedule details belong in the agreement?
Include estimated start and completion dates. If the job is staged, list the principal phases or milestones so the schedule is not reduced to a single end date. These are estimates, not a guarantee that no delay can occur; the important point is to record the schedule the parties are using as their baseline.
When a change affects the expected finish, state the schedule impact in the change order. California’s Contractors State License Board sample contract includes the effect of a change on the completion date among the change-order details. That is a useful official example, not proof that the same wording is mandatory in every jurisdiction.
What contractor information and promises should be recorded?
Write down the contractor’s name, address, and phone number, along with a license number where required. The FTC recommends checking a contractor’s license with the relevant state or county government and asking for proof of insurance before committing. Verify the information with the appropriate local authority rather than assuming that a number on a proposal is current or sufficient.
Put material promises in the signed agreement: this includes agreed scope, labor or material costs, and other commitments that matter to the project. Keep supporting documents such as estimates and written correspondence with the contract. The contract is easier to use later when its terms can be read alongside the records that explain what was agreed.
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How should a change order work?
Use a written change order signed by both the homeowner and contractor before work on the changed item begins. The document should describe the revised work and materials, add or subtract the cost, show the new contract total, and explain any effect on payments or the expected completion date.
- Describe the change. Identify the work or materials being added, removed, or revised. Avoid a change order that says only “extra work” without defining what that means.
- Show the price effect. State the amount added or subtracted and the revised total. If the pricing method means the final amount is not yet known, clearly record the method and any estimate or limit that applies, subject to local rules.
- Update payments and timing. Explain whether progress payments change, when any payment for the change is due, and whether the completion date or project sequence shifts.
- Date and sign it before proceeding. Include the date and signatures of both parties. Keep a copy with the original contract and other project records.
Official examples illustrate why location matters. New York City’s Department of Consumer and Worker Protection says its local requirement is that change orders be written and signed by the contractor and consumer, and its checklist references the additional-work cost, new contract price, and payment due date. California’s Contractors State License Board sample contract calls for a written order signed before changed work starts and describing its scope, price adjustment, and effect on progress payments or completion. These examples support a sound process, but their exact statutory requirements should not be generalized to every state.
Pennsylvania provides a separate example for certain covered time-and-materials contracts: its Attorney General’s FAQ describes a written initial estimate, a ceiling of 10% above that estimate, and a written change order signed by the owner and contractor before exceeding that amount. That is Pennsylvania-specific guidance for the contracts it covers, not a nationwide threshold. Confirm how the rules apply to the particular project before relying on it.
What should you do before signing?
Read the entire agreement and any attachments, fill in blank spaces, and make sure the signed documents reflect the deal you intend to make. The FTC warns against leaving blanks and recommends retaining invoices and receipts. Keep a complete signed copy, estimates, change orders, correspondence, and notes together so there is a record of the project’s terms and later decisions.
Check whether a cancellation notice or other disclosure is required for the circumstances. The FTC describes a three-business-day cancellation right for certain contracts signed in the home or somewhere other than the seller’s permanent place of business. It does not apply to every home improvement contract or situation, and state requirements can differ. Do not assume the right applies—or that the same deadline governs—without checking the relevant guidance.
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Before committing, verify the contractor’s license where applicable and ask for proof of insurance. If something important is missing, unclear, or left blank, ask for a completed written version before signing rather than relying on a verbal assurance to fix it later.
How can you compare home improvement bids?
Get estimates from more than one contractor and compare what each proposal actually includes, not just the bottom-line number. The FTC’s 2022 home repair handout recommends getting three written estimates. This is consumer advice, not a statistical finding or a guarantee that a particular number of bids will produce a better result.
- Scope and materials: Are the work, specifications, exclusions, and cleanup described clearly enough to compare?
- Price basis: Is the figure fixed, an estimate, or based on time and materials? What may be billed separately?
- Payments: Are the deposit and later payment triggers stated clearly?
- Schedule: Are estimated start and completion dates included, and are stages identified where useful?
- Changes: Does the proposal explain how added or revised work will be described, priced, approved, and reflected in the schedule?
- Credentials and promises: Are contractor details, applicable license information, insurance, and project commitments documented?
The FTC advises against automatically choosing the lowest bid and recommends asking about a large price difference. A lower figure may reflect a narrower scope, different materials, or an assumption that is not obvious from the total alone. Ask each contractor to clarify material differences in writing so the comparison is between comparable work.
What belongs in the project record after signing?
Keep the signed contract and all attachments in one place, then add each estimate, invoice, receipt, signed change order, and relevant letter or message. The FTC advises homeowners to keep notes and copies of letters and documents, as well as invoices and receipts. A simple project log can help organize dates, decisions, and documents, but it is not a contract form and does not ensure legal compliance.
After a conversation that changes an expectation, summarize the point in writing and ask the contractor to incorporate any actual scope, price, payment, or schedule change into a signed change order before that work begins. This avoids treating a casual discussion as a reliable substitute for an agreed written record.
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Frequently Asked Questions
Can I make a home improvement contract myself?
You can write down project terms, but a generic template may not include disclosures or clauses required for your location or circumstances. Check state and local requirements before relying on a form, and consider local legal advice if the project or terms are complex.
What if my contractor wants to start changed work before signing a change order?
Ask to pause that changed work until the revised scope, price, payment effect, and schedule are documented and both sides have signed. If the contractor will not do that, contact the consumer or licensing agency for the project’s location about your options before authorizing additional work.
Do I always have three days to cancel a home improvement contract?
No. The FTC describes a three-business-day cancellation right for certain contracts signed at home or away from the seller’s permanent place of business, not every project. The contract’s location and circumstances matter, and other state rules may apply.
Should I sign a contract with blank fields if the contractor promises to fill them in later?
It is safer to ask for a complete version first: a blank can leave uncertainty about a key term or allow later disagreement about what was written. The FTC specifically warns homeowners not to leave blanks and recommends keeping a copy of the signed documents.
