What a Contract Should Include
1. Contractors' name, address, and license number. The approximate date the work is to begin and when the work will be substantially completed.
2. Clear financial terms including the total price and when payments are due. Include retention clause (usually 10% withheld until final completion), cancellation penalty, and a clearly stated down payment requirement (may be $1,000 or 10% of the contract total, whichever is less) (except for construction of swimming pools).
3. Description of the work to be done including specifications as applicable regarding the quality, quantity, weight, color, size, brand name, etc. of materials to be used.
4. Instructions regarding clean up, removal, and disposal of debris and unused materials. Instructions regarding where materials may and may not be stored, and special considerations regarding children and pets.
5. All changes to the original contract are to be in writing, on change orders that specify details as noted for the original contract. Change orders should be signed, dated, and retained by both parties.
6. Cancellation period of 3 business days. Cancellation should be in writing, and sent via registered mail to the contractor to create a formal and dated record.
7. All warranties for labor and materials offered by the contractor shall be provided to the property owner in writing. They should specify what is and is not covered, and for what duration. Written manufacturers warranties, too, should be provided to the property owner.
8. All work to be performed shall be in compliance with applicable building codes and city requirements. Contractor will obtain all necessary building, zoning, electrical, heating, plumbing, or otherwise required permits. Contractor is responsible for arranging all required inspections. (Property owner should be present at all inspections).
9. Homeowner should have copies of all signed contracts, plans and specifications for the project, including all changes, in writing. Permits, plans, and specifications should be posted at the work site.
10. Problems, questions, and complaints should be in writing to the contractor.
11. The contract should include a Notice to Owner regarding state lien laws, including property owner's rights and responsibilities. (Property owners should receive lien releases from subcontractors and material suppliers).
12. A notice, that failure of the contractor, without lawful excuse, to substantially commence work within 20 days of approximated start date, constitutes a violation of the Contractor's License Law.