Construction
Home Improvement and Contractor Agreement
Hire a contractor with the scope, payment schedule, permits, and lien protections that decide whether a renovation goes well.
Available product levels
Customized Agreements
$29.99Guided questions and tailored clauses for agreements that need specific protections.
When to use this document
- A renovation, addition, or significant repair
- Work where the price justifies a written contract
- Projects requiring permits or inspections
- Any job where subcontractors will be involved
Information you will need
- Owner, contractor, and the property
- A detailed scope, and what is excluded
- Price basis, total, deposit, and payment schedule
- Materials source, grade, and whether substitution is allowed
- Who obtains permits, and who handles cleanup
- Start and completion dates, and whether time is of the essence
- Insurance, warranty, subcontractors, and dispute process
What you receive
- A Home Improvement and Contractor Agreement
- Payment schedule and scope schedule
- Signature blocks for owner and contractor
- Completion instructions
- PDF and editable DOCX export
Special situations
- Unpaid subcontractors can lien your property even where you paid the contractor in full. Condition final payment on lien waivers from everyone who worked on the job.
- Several states cap deposits on home improvement contracts. A large payment before work starts is the most common way owners lose money.
- Check the contractor's licence and insurance directly with the issuing body, not by accepting a copy. Ask for a certificate of insurance naming you.
- Whoever pulls the permit carries responsibility for inspection. Unpermitted work surfaces when you sell, and remedying it then is expensive.
- Tie payments to progress, not to dates. Paying ahead of the work removes your only leverage if the job stalls.
- Get changes in writing before they are performed. Verbal change orders are the single most common source of a disputed final bill.
Jurisdiction
Home improvement contracts are regulated in many states, with rules on deposits, required contract terms, cancellation rights, licensing, and mechanics liens. Notice and filing deadlines for liens are strict and vary. This agreement states no cap, deadline, or licensing requirement.
Frequently asked questions
Can a subcontractor put a lien on my house if I paid the contractor?
In most states, yes. An unpaid subcontractor or supplier may have rights against the property regardless of what you paid the general contractor. Condition final payment on signed lien waivers from everyone who worked on the job — after you pay, you have no leverage to obtain them.
How much deposit should I pay up front?
As little as the contract and your state allow. Several states cap deposits on home improvement work specifically because large advance payments are how owners lose money. Tie the rest to visible progress.
Who should get the permits?
Whoever pulls the permit is responsible for the inspections, which is a reason to have the contractor do it. But unpermitted work becomes your problem when you sell, so confirm the permit was actually obtained rather than assuming.
What does time of the essence mean?
It makes the completion date a binding term rather than an expectation, so missing it is a breach. It matters if you have a hard deadline; contractors will often resist it, and that resistance is informative.
The contractor wants to change materials. Can they?
Only if the agreement allows it. Unrestricted substitution is how a specified finish quietly becomes a cheaper one. Requiring written approval for substitutions costs you nothing and protects what you actually chose.
Related documents and guides
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Last reviewed July 29, 2026.