Contractor & Planning

What Should Be Included in a Renovation Contract?

A solid renovation contract covers scope, materials, timeline, payment schedule, permits, change orders, and warranty.

Essential contract clauses

Both parties should understand every section before signing.

  • Detailed scope and drawings
  • Material brands and model numbers
  • Payment tied to milestones
  • Change-order process in writing
  • Warranty on labor and materials

Dates, draws, and who owns the dumpster

A useful contract names a start window, a substantial-completion target, and payment tied to inspections or visible milestones — not “50% to start, 50% when we feel done.” It also says who pulls the permit, who calls inspections, and who pays if the dumpster overages.

  • Retainage of about 10% until punch list is finished is ordinary, not rude
  • Change orders should be signed before the extra work, with a price or a T&M rate
  • Warranty should split workmanship years from product manufacturer years

What to attach as exhibits

The drawing, the fixture list with model numbers, and the waterproofing or window spec belong as exhibits. Verbal “we’ll figure the niche later” is how extras appear. If it is not on a page with both signatures, it is not in the job.

  • Photo the existing conditions the day before demo
  • List what the homeowner must remove (furniture, TVs) and by when
  • Name the lien-waiver process so you are not paying twice for the same sub

Frequently asked questions

Can I use the contractor’s contract as-is?
Read every clause. Negotiate payment schedule, change-order process, and warranty before signing. Walk away if scope is vague.