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What Should Be in a Home Improvement Contract?

A clear contract prevents most disputes. The 14 things every home improvement contract should include, from scope and materials to warranty and cancellation.

Published Oct 27, 2026. 2 min read.

Avoid vs. do this: handshake deal vs. signing a written contract

A handshake isn't enough. Most disputes between homeowners and contractors come from things that were never written down. Before work starts, make sure your contract includes everything below.

The essentials

  1. Contractor's legal name, address and license number — matching the license record.
  2. Your name and the job address.
  3. Detailed scope of work — what will be done, room by room or area by area.
  4. Materials and products by brand, model, color and quantity.
  5. Allowances with dollar amounts, and how overages are handled.
  6. Total price and what is not included.
  7. Payment schedule tied to finished stages, and the deposit amount.
  8. Start date and expected completion date.
  9. Permits — who pulls them and who pays.
  10. Change order process — written, priced and signed before extra work.
  11. Cleanup and disposal.
  12. Warranty on workmanship, in years, separate from manufacturer warranties.
  13. Proof of insurance (liability and workers' compensation).
  14. Your right to cancel, where it applies, and lien-waiver terms.

Your three-day right to cancel

If you sign at your home after the contractor came to you, the FTC's Cooling-Off Rule generally gives you three business days to cancel sales of $25 or more, and the seller must give you a cancellation form. Many states have their own rules too.

Red flags in a contract

  • Blank spaces or "TBD" for important items
  • No license number
  • Large up-front payment
  • Wording that makes you responsible for permits
  • No written change-order process

Before you sign, look up the contractor's license and compare your quotes so the contract matches the best offer.

Frequently asked questions

Does a home improvement contract have to be in writing?

Many states require a written contract for home improvement work over a certain amount. Even where it isn't required, always get one.

Can I change the contract after signing?

Yes, through a written change order signed by both of you, with the price and schedule change stated.

Should I have a lawyer review a contractor contract?

For large projects, an attorney review is inexpensive insurance. At minimum, read every line and ask about anything unclear.

Sources

Prices are national ranges for planning only. Your price depends on your home, your region and the contractor. This guide is general information, not professional, legal or insurance advice.

This guide is general information, not legal advice. Rules differ by state and city; check with your state's consumer protection office or a local attorney.

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