Residential Construction Contract (Home Improvement)

How to use this Residential Construction Contract (Home Improvement) in US

In your state the contract is regulated, not just recommended: To fix a mechanic's lien on a homestead the contractor and the owner must sign a written contract before any work begins; if the owner is married both spouses must sign, and the contract must be filed with the county clerk where the homestead is located. (Tex. Prop. Code § 53.254) This template writes the scope, the dates, the price, the payment milestones and the change-order rule into one document and prints the notices your state requires around it.

Price the job in one of three ways. A fixed price puts the risk of overruns on the contractor and is what most homeowners should ask for. Cost plus a fee makes sense for open-ended renovation, but only with a not-to-exceed number and access to the books. Time and materials suits small repairs where nobody can scope the work in advance. Tie the rest to milestones a person can stand in the room and verify — never to a calendar.

No statewide residential contractor licence was confirmed for your state, so check whether the city or county registers contractors before the work starts. Ask for a certificate of general liability insurance and, where the contractor has employees, workers' compensation. An uninsured injury on your property is the one construction risk a homeowner cannot fix afterwards.

The contract has to carry the notices your state prescribes — KNOW YOUR RIGHTS AND RESPONSIBILITIES UNDER THE LAW — and this template prints each of them. If the owner signs anywhere other than the contractor's regular place of business, the federal Cooling-Off Rule gives three business days to cancel and requires two copies of a cancellation form (16 C.F.R. § 429.1(a) (FTC Cooling-Off Rule)). Sign before any work begins, hand the owner a full copy the same day, and collect a lien waiver with every payment.