How to read a contractor contract: a plain-English tour
Home improvement contracts are written in legalese for a reason. Here’s a plain-English tour of what every clause means — and which ones matter most.
Scope of work
The complete list of what will and won’t be done. If the answer isn’t here, it isn’t in the deal.
Contract price and payment schedule
Total price plus how it’s billed. Milestone-tied is normal; “pay in full” is not.
Change orders
How changes happen. Written, priced, signed, before the work — always.
Substantial completion
Legal-ish term for “the project is done enough that you can use it.” Triggers final payment (minus punch-list retention).
Warranty
What’s covered and for how long. One year workmanship is minimum; two years is generous.
Cancellation notice
Many states give you three business days to cancel without penalty. The contract should say so.
Mechanic’s lien / lien waiver
Protects you from unpaid subs putting a lien on your house. Insist on waivers with each payment.
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