How to Read a Contractor Contract: 10 Things to Check Before Signing

10 Things to Check in a Contractor Contract Before Signing

1. Detailed Scope of Work

The contract should describe exactly what will be done — not just "remodel kitchen" but: demo existing cabinets, supply and install X brand cabinets, install countertops (material and thickness specified), etc. Vague scopes lead to change order disputes.

2. Materials Specifications

Brand, model, grade, and color for every significant material. "Comparable substitute" clauses should specify minimum equivalency standards, not give the contractor blank permission to downgrade.

3. Start and Completion Dates

Both dates should be specific. "Weather permitting" clauses are normal for exterior work. Watch for contracts with no completion date at all — that's a red flag.

4. Payment Schedule

Never pay more than 30% upfront for a residential project. Legitimate milestones are standard: 30% at start, 30% at midpoint, balance at completion. Contracts that ask for 50–100% upfront are a scam signal.

5. Change Order Process

Changes to scope should require a signed written change order with agreed pricing before work begins. Contractors who make verbal agreements about "we'll sort it out later" often charge more at the end.

6. Permit Responsibility

The contract should clearly state who is responsible for pulling and paying for permits. Answer should be: the contractor. If they ask you to pull permits, that's a red flag — contractors use permits to avoid liability.

7. Cleanup and Debris Removal

Specify that the contractor is responsible for daily cleanup and final haul-away of all debris. Otherwise you may end up with a dumpster on your lawn and no recourse.

8. Warranty Terms

What does the contractor warrant, and for how long? Labor warranties are typically 1 year; manufacturer warranties on materials are separate. Get both in writing.

9. Lien Waiver Provision

In Texas, subcontractors and material suppliers can place a mechanic's lien on your property if the general contractor doesn't pay them — even if you paid the GC. A lien waiver clause (or requesting lien waivers with each payment) protects you.

10. Dispute Resolution

Does the contract require arbitration, or can you sue in court? Mandatory arbitration clauses favor contractors in some cases. Know what you're agreeing to.

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