Before starting any construction project, it is crucial to have a solid contract in place. Many homeowners overlook key elements that can protect them and ensure a smooth process. Here are the top five things you should include in your contract before work begins.

Scope of Work

Defining the scope of work is essential for any construction contract. It outlines the specific tasks to be completed, ensuring both parties have a clear understanding of what is expected. This section should detail the materials to be used and the timeline for completion.

Without a clearly defined scope of work, misunderstandings can arise, leading to disputes and delays. Homeowners should work closely with their contractor to ensure this section is comprehensive and leaves no room for ambiguity. Clarity helps to set realistic expectations and prevents conflicts.

A well-defined scope of work prevents misunderstandings and disputes.

Payment Terms

Payment terms are a critical component of any construction contract. They should specify the total project cost, payment schedule, and any penalties for late payments. Understanding these terms helps homeowners manage their budget effectively.

It is advisable to link payments to project milestones rather than dates. This ensures that payments are made only after specific phases of the project are completed to your satisfaction. Such arrangements protect both parties and encourage timely progress.

Change Order Process

Changes are inevitable in construction projects, making a change order process essential. This section should outline how changes will be handled, including how they will be documented and approved.

Having a formal process for change orders helps prevent confusion and ensures that all parties agree on modifications before they are implemented. This process protects homeowners from unexpected costs and ensures that contractors are compensated for additional work.

In Summary

Including these elements in your construction contract can significantly enhance your project’s success. A well-defined scope of work prevents misunderstandings, clear payment terms ensure financial transparency, and a structured change order process manages adjustments smoothly. By paying attention to these details, homeowners can protect their investment and foster a positive working relationship with their contractor.

Want to take the next step? Explore our homeowner lessons, planning worksheets, contractor vetting tools and more at WeSpeak Contractor to plan smarter and hire with confidence.