Why the Contract Matters
Most remodeling disputes stem from unclear contracts. Verbal agreements, vague scopes, and missing change order policies create the conditions for cost overruns, delays, and disagreements about what was included.
What Must Be in the Contract
- Full scope of work — specific materials, brands, and dimensions
- Itemized price breakdown by labor, materials, and categories
- Payment schedule — tied to milestones, not calendar dates
- Project start date and substantial completion date
- Change order process — any scope additions must be in writing before work begins
- Permits — who pulls them and who is responsible
- Warranty terms — what is covered and for how long
- Lien waiver process — conditional waivers at each payment milestone
- Default clauses — what happens if contractor abandons or homeowner withholds payment
Red Flags in Contracts
- No itemized breakdown — lump sum only
- No change order language
- Large upfront payment before work begins (over 10-15%)
- No completion date
- Verbal agreements not captured in writing
Frequently Asked Questions
Is a verbal agreement with a contractor enforceable?
Verbal agreements can be legally enforceable but are extremely difficult to prove. Always get everything in writing before work begins. A contractor who resists putting things in writing is a red flag.
What is a reasonable payment schedule for a remodel?
A typical payment schedule is 10-15% deposit at signing, payments tied to project milestones (demolition complete, rough-in complete, tile complete, final completion), and a 5-10% retention held until final punch list is resolved.