What Should Be Included in a Remodeling Contract?
4-minute read · By Chris Brinker, General Contractor
This is about a 4-minute read. If you don’t have four minutes, here’s the Cliff’s Notes version: the less detail you have upfront, the more your remodel is likely to cost you in both dollars and time later.
Get the details worked out before construction starts. It’s a lot cheaper to make decisions on paper than in the middle of a project.
— Chris
You’ve picked a contractor, agreed on a price, and you’re ready to get your remodel started.
Before you sign the contract, slow down for a minute.
The total price gets most of the attention, but it’s often not the most important part of a remodeling contract. What matters just as much is what that price actually includes — and what it doesn’t.
I’ve worked in residential remodeling for years as a general contractor. Many of the expensive disagreements that happen during construction can be traced back to something that wasn’t clearly defined before the project started.
Here are the areas I would look at before signing a remodeling contract.
1. A Detailed Scope of Work
“Remodel master bathroom” is not a scope of work.
A good scope should explain what the contractor is actually providing. Depending on the project, that might include demolition, framing, plumbing, electrical, drywall, waterproofing, tile, cabinetry, countertops, painting, fixtures and finish work.
The more that is left vague, the more that will need to be figured out later.
And figuring things out later usually costs more.
2. Specific Materials and Finishes
Look for specifics.
Instead of:
Install tile.
You want something closer to:
Install owner-selected 12" x 24" porcelain tile at bathroom floor and shower walls.
Better yet, the contract or specifications may identify the manufacturer, product, supplier, price allowance and installation pattern.
You don't necessarily need to select every cabinet knob before signing a contract. But major materials and finishes should either be identified or have clearly defined allowances.
3. Allowances
Allowances deserve special attention because they can make an estimate appear more complete than it really is.
For example, your contractor may include:
Tile allowance: $3,000
But what does that mean?
Is that $3,000 for the tile material only? Does it include tax? Delivery? Setting materials? Installation?
And is $3,000 actually reasonable for the amount and type of tile you're expecting?
An allowance isn't necessarily a problem. They're common in remodeling.
The problem is an allowance that you don't fully understand.
4. What's Excluded
Sometimes what isn't included is just as important as what is.
Look for exclusions involving things like painting, appliances, fixtures, permits, engineering, hazardous-material remediation, utility upgrades, landscaping or repair of areas affected by construction.
An exclusion doesn't automatically make a contract bad.
You simply want to know about it before construction starts, not when you're halfway through the project.
5. Who Is Purchasing What?
This sounds simple, but it causes plenty of confusion.
Who is buying the faucets?
Who orders the appliances?
Who provides the tile?
Who checks quantities?
Who pays for delivery?
And what happens if something arrives damaged or late?
Your contract should make it reasonably clear which items are contractor-provided and which are owner-provided.
6. Payment Schedule
The contract should clearly explain when payments are due and what triggers them.
Ideally, payments correspond to recognizable stages of progress rather than arbitrary dates.
You should be able to understand:
How much is due before work begins
When progress payments occur
What milestones trigger those payments
What amount remains at substantial or final completion
You should also understand how deposits and progress payments comply with the rules in your state.
7. Change Orders
Changes happen during remodeling.
You open a wall and discover something unexpected. You decide to upgrade a material. The layout changes. Additional work becomes necessary.
The contract should explain how those changes are documented and priced.
A good change-order process protects both the homeowner and the contractor because everyone knows what changed and what it costs before the additional work moves forward whenever possible.
8. Schedule and Project Duration
Remodeling schedules aren't perfectly predictable.
Inspections get delayed. Materials arrive late. Hidden conditions appear.
But the contract should still give you a reasonable understanding of when the project is expected to start and approximately how long the work should take.
Pay attention to language that gives one party unlimited flexibility without explaining what happens when significant delays occur.
9. Permits and Inspections
The contract should identify who is responsible for obtaining required permits and coordinating inspections.
If you're doing substantial structural, electrical, plumbing or mechanical work and the contract barely mentions permitting, that's worth asking about before signing.
10. Warranty and Completion
Understand what happens at the end of the project.
How are incomplete items handled?
Is there a walkthrough or punch list?
What warranties are provided?
When is final payment due?
The end of the project deserves just as much clarity as the beginning.
The Big Question: Does the Contract Match What You Think You're Buying?
This is the question I would keep coming back to.
You may have spent months talking with your contractor about your dream kitchen or bathroom.
But ultimately, the written contract, scope, plans and specifications need to reflect those conversations.
Don't assume something is included because you discussed it.
Look for it in the documents.
If something important isn't there, ask about it before you sign.
A few questions before construction starts are much easier — and usually much cheaper — than sorting out a disagreement halfway through the job.
Want a Second Set of Eyes Before You Sign?
We look for unclear scope, questionable allowances, missing details, exclusions and other areas worth discussing with your contractor before construction begins.
Confidence before construction.
About Chris
Chris Brinker is a general contractor and the founder of RemodelCheck. After years of estimating and managing residential remodels, he created RemodelCheck to help homeowners better understand their contracts, scopes and estimates before construction begins.