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HOME IMPROVEMENT CONTRACTOR AGREEMENT

Effective Date: February 10, 2026

This Home Improvement Contractor Agreement ("Agreement") is entered into by and between:

Homeowner: [Homeowner Name]
Address: [Homeowner Address]

AND

Contractor: [Contractor Name]
License Number: [License Number]
Address: [Contractor Address]

(each a "Party" and collectively the "Parties")

RECITALS

WHEREAS, the Homeowner is the owner of real property located at [Project Address] (the "Property"); and

WHEREAS, the Homeowner desires to engage the Contractor to perform certain home improvement and renovation work on the Property; and

WHEREAS, the Contractor is duly licensed and qualified to perform such work and desires to perform the work under the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the Parties agree as follows:

1. PARTIES

1.1. HOMEOWNER: [Homeowner Name], residing at [Homeowner Address], is the owner of the Property where the work will be performed.

1.2. CONTRACTOR: [Contractor Name], holding contractor license number [License Number], with a principal place of business at [Contractor Address], is a licensed home improvement contractor authorized to perform the work described herein.

2. PROJECT SCOPE AND SPECIFICATIONS

2.1. SCOPE OF WORK: The Contractor agrees to perform the following home improvement work at the Property located at [Project Address] (the "Project"):

[Description of renovation work]

2.2. The work shall be performed in a professional and workmanlike manner, in compliance with all applicable building codes, regulations, and industry standards.

2.3. Any work not specifically described in this Agreement is excluded from the scope of the Project. Additional work shall be governed by the Change Order provisions set forth herein.

2.4. The Contractor shall furnish all labor, supervision, tools, and equipment necessary to complete the Project, unless otherwise specified in this Agreement.

3. CONTRACT PRICE

3.1. TOTAL CONTRACT PRICE: The Homeowner agrees to pay the Contractor a total sum of [Amount] (the "Total Contract Price") for the complete performance of the Project as described in this Agreement.

3.2. The Total Contract Price includes all labor, supervision, overhead, profit, and materials unless otherwise specified.

3.3. The Total Contract Price is a fixed price and shall not be adjusted except through written Change Orders executed by both Parties.

4. PAYMENT SCHEDULE

4.1. The Homeowner shall pay the Total Contract Price according to the following schedule:

(a) First Payment: Fifty percent (50%) of the Total Contract Price ([Amount]) shall be due upon execution of this Agreement.
(b) Final Payment: The remaining fifty percent (50%) shall be due upon substantial completion of the Project and final inspection approval by the Homeowner.

4.2. All payments shall be made by check, electronic transfer, or such other method as mutually agreed upon by the Parties.

4.3. The Homeowner shall have a reasonable period not to exceed ten (10) business days after receiving written notice of a payment milestone to inspect the work and make payment.

4.4. LATE PAYMENTS: Payments not received within fifteen (15) days of the due date shall accrue interest at a rate of 1.5% per month on the outstanding balance. The Contractor may suspend work if payment is more than thirty (30) days overdue.

5. TIMELINE

5.1. START DATE: The Contractor shall commence work on or about [Start Date].

5.2. ESTIMATED COMPLETION DATE: The Contractor shall use commercially reasonable efforts to substantially complete the Project by [Estimated Completion Date].

5.3. The estimated completion date is subject to adjustment for delays caused by: (a) weather conditions that prevent safe or effective work; (b) Homeowner-requested changes; (c) unforeseen site conditions; (d) material shortages or delivery delays beyond the Contractor's control; (e) force majeure events; or (f) any delay caused by the Homeowner.

5.4. The Contractor shall notify the Homeowner promptly of any anticipated delays and provide a revised estimated completion date.

5.5. WORKING HOURS: Work shall be performed during normal business hours, typically Monday through Friday, 8:00 AM to 6:00 PM, and Saturday, 9:00 AM to 4:00 PM, unless otherwise agreed in writing or restricted by local ordinance.

6. MATERIALS

6.1. The Contractor shall provide all materials, supplies, and equipment necessary for the completion of the Project. All materials shall be new and of good quality unless otherwise specified. The cost of all materials is included in the Total Contract Price.

6.2. MATERIAL SUBSTITUTIONS: If specified materials become unavailable, the Contractor shall notify the Homeowner and propose a substitute of equal or greater quality. No substitution shall be made without the Homeowner's prior written approval.

6.3. MATERIAL WARRANTIES: All materials shall carry the manufacturer's standard warranty. The Contractor shall provide the Homeowner with all manufacturer warranty documentation upon project completion.

7. PERMITS AND INSPECTIONS

7.1. The Contractor shall be responsible for obtaining all necessary building permits, licenses, and approvals required for the Project at the Contractor's expense, unless the permit fees are separately itemized in the Total Contract Price.

7.2. The Contractor shall schedule and coordinate all required inspections with the appropriate governmental authorities.

7.3. The Contractor shall ensure that all work complies with applicable building codes, zoning regulations, and local ordinances.

7.4. The Contractor shall provide the Homeowner with copies of all permits and inspection reports. Final payment shall not be due until all required inspections have been passed and approved.

8. CHANGES AND EXTRAS

8.1. CHANGE ORDERS: Any changes to the scope of work, materials, or specifications must be documented in a written Change Order signed by both Parties before the additional or modified work begins.

8.2. Each Change Order shall describe the proposed change, the impact on the Total Contract Price (if any), and the impact on the estimated completion date (if any).

8.3. The Contractor shall not perform any work beyond the original scope without an executed Change Order. Work performed without an executed Change Order shall be at the Contractor's sole risk and expense.

8.4. The Homeowner acknowledges that changes may result in additional costs and delays. The Contractor shall provide a written estimate for each proposed change before work begins.

9. WARRANTY

9.1. WORKMANSHIP WARRANTY: The Contractor warrants that all work performed under this Agreement shall be free from defects in workmanship for a period of one (1) year from the date of substantial completion (the "Warranty Period").

9.2. During the Warranty Period, the Contractor shall repair or replace, at no additional cost to the Homeowner, any work that is found to be defective due to faulty workmanship or failure to conform to the specifications in this Agreement.

9.3. The Homeowner shall notify the Contractor in writing of any warranty claim within a reasonable time after discovering the defect. The Contractor shall respond to warranty claims within fourteen (14) days and commence repairs within a reasonable time thereafter.

9.4. This warranty does not cover: (a) damage caused by the Homeowner's misuse, neglect, or failure to maintain; (b) damage caused by Acts of God or natural disasters; (c) normal wear and tear; (d) modifications or repairs made by others without the Contractor's written consent.

9.5. MATERIAL WARRANTIES: Manufacturer warranties on materials and products are separate from and in addition to the Contractor's workmanship warranty. The Contractor shall assign all transferable manufacturer warranties to the Homeowner.

10. INSURANCE

10.1. The Contractor shall maintain, at its own expense, the following insurance coverage throughout the duration of the Project:
    (a) Commercial General Liability insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate;
    (b) Workers' Compensation insurance as required by applicable law;
    (c) Automobile Liability insurance for vehicles used in connection with the Project.

10.2. The Contractor shall provide the Homeowner with certificates of insurance upon request and prior to commencing work.

10.3. The Homeowner is encouraged to maintain homeowner's insurance coverage on the Property throughout the duration of the Project and to notify their insurance carrier that renovation work is being performed.

11. CLEANUP

11.1. The Contractor shall maintain the work site in a reasonably clean and safe condition throughout the Project.

11.2. The Contractor shall remove all construction debris, waste materials, and equipment from the Property upon substantial completion of the Project.

11.3. Final cleanup shall include broom-sweeping of work areas and removal of all Contractor-owned materials, tools, and equipment. The work site shall be left in a condition suitable for the Homeowner's use and occupancy.

12. DISPUTE RESOLUTION

12.1. NEGOTIATION: In the event of any dispute arising out of or relating to this Agreement, the Parties shall first attempt to resolve the dispute through good-faith negotiation within thirty (30) days of written notice of the dispute.

12.2. MEDIATION: If the dispute cannot be resolved through negotiation, the Parties agree to submit the dispute to mediation administered by a mutually agreed-upon mediator before pursuing any other remedy. The cost of mediation shall be shared equally by the Parties.

12.3. LITIGATION: If mediation is unsuccessful, either Party may pursue remedies available at law or in equity in the courts of [Jurisdiction]. The prevailing party in any legal action shall be entitled to recover reasonable attorney's fees and costs.

13. TERMINATION

13.1. TERMINATION BY HOMEOWNER: The Homeowner may terminate this Agreement at any time for any reason upon written notice to the Contractor. In the event of termination by the Homeowner, the Homeowner shall pay the Contractor for all work satisfactorily completed through the date of termination, plus the reasonable cost of materials ordered but not yet installed.

13.2. TERMINATION BY CONTRACTOR: The Contractor may terminate this Agreement if: (a) the Homeowner fails to make payment within thirty (30) days of the due date after written notice; (b) the Homeowner materially interferes with the Contractor's ability to perform the work; or (c) conditions at the Project site pose a health or safety risk that cannot be reasonably mitigated.

13.3. Upon termination, the Contractor shall secure the work site, remove equipment, and provide the Homeowner with a detailed accounting of all work completed and payments received.

14. GENERAL PROVISIONS

14.1. GOVERNING LAW: This Agreement shall be governed by the laws of [Jurisdiction].

14.2. ENTIRE AGREEMENT: This Agreement, together with any Change Orders and addenda, constitutes the entire agreement between the Parties and supersedes all prior negotiations, representations, and agreements.

14.3. AMENDMENTS: This Agreement may only be modified by a written instrument signed by both Parties.

14.4. SEVERABILITY: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

14.5. NOTICES: All notices required or permitted under this Agreement shall be in writing and delivered by certified mail, hand delivery, or email to the addresses set forth above.

14.6. INDEPENDENT CONTRACTOR: The Contractor is an independent contractor and not an employee, agent, or partner of the Homeowner. The Contractor shall be solely responsible for the means and methods of performing the work.

14.7. LIEN WAIVERS: The Contractor shall provide unconditional lien waivers for each payment received and shall ensure that all subcontractors and material suppliers provide lien waivers as applicable.

14.8. SUBCONTRACTORS: The Contractor may engage subcontractors to perform portions of the work, provided that the Contractor remains fully responsible for the quality and timeliness of all work performed.

14.9. ACCESS: The Homeowner shall provide the Contractor with reasonable access to the Property during working hours for the performance of the work.

14.10. FORCE MAJEURE: Neither Party shall be liable for failure to perform due to causes beyond their reasonable control, including but not limited to natural disasters, pandemics, government actions, or material shortages.


IN WITNESS WHEREOF, the Parties have executed this Home Improvement Contractor Agreement as of the Effective Date.


HOMEOWNER:

Signature: ____________________________
Name: [Homeowner Name]
Date: ____________________________


CONTRACTOR:

Signature: ____________________________
Name: [Contractor Name]
License #: [License Number]
Date: ____________________________


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What is a Home Improvement Contractor Agreement?

A Home Improvement Contractor Agreement is a legally binding contract between a homeowner and a licensed contractor that defines the scope, cost, timeline, and terms of a residential renovation or remodeling project. It serves as the foundation for the working relationship, ensuring both parties have clear expectations about what work will be performed, how much it will cost, and when it will be completed.

Whether you are remodeling a kitchen, adding a bathroom, replacing a roof, or undertaking a full home renovation, a written contractor agreement protects you from disputes over pricing, delays, and quality of work. Many states require written contracts for home improvement projects above a certain dollar threshold, making this document not just a best practice but often a legal requirement.

Key provisions in a Contractor Agreement

Scope of Work

A detailed description of exactly what work will be performed, including materials, specifications, and any exclusions from the project.

Payment Schedule

How and when payments are due, tied to project milestones rather than calendar dates, protecting both the homeowner and contractor.

Timeline & Milestones

Start date, estimated completion date, and key milestones with provisions for delays caused by weather, material shortages, or change orders.

Warranty & Guarantees

Workmanship warranty duration, what is covered, claim procedures, and how manufacturer warranties on materials are passed through to the homeowner.

Common payment structures for home renovations

StructureHow It WorksProtection Level
50/50 SplitHalf at signing, half at completionModerate — simple but higher upfront risk
30/40/30 SplitStart, midpoint milestone, completionGood — ties payments to progress
25/25/25/25 SplitFour installments tied to milestonesStrong — maximum accountability
Upon CompletionFull payment after work is doneHighest for homeowner, risky for contractor

Tips for hiring a home improvement contractor

Do

  • Verify the contractor's license and insurance before signing
  • Get at least three written estimates for comparison
  • Require a detailed written scope of work and specifications
  • Tie payment milestones to completed work, not calendar dates

Don't

  • Pay more than 50% of the total price upfront
  • Agree to verbal-only changes — always use written change orders
  • Hire an unlicensed or uninsured contractor to save money
  • Make the final payment before inspecting and approving all work

Frequently asked questions

Do I need a written contract for home improvement work?

Yes. Most states require a written contract for home improvement projects over a certain dollar amount (often $500 or $1,000). Even for smaller projects, a written agreement protects both parties by documenting the scope, price, and timeline. Without a written contract, you may have limited legal recourse if something goes wrong.

What should I do if the contractor wants to change the scope or price?

Any changes to the original agreement should be documented in a written Change Order signed by both parties before the new work begins. The Change Order should describe the change, the cost impact, and the timeline impact. Never approve extra work verbally — a signed Change Order protects you from unexpected charges.

How much should I pay upfront to a contractor?

Industry best practice is to never pay more than 30-50% upfront, with the remainder tied to project milestones. Some states cap the maximum deposit a contractor can collect. Paying in installments tied to completed work gives you leverage to ensure quality and timely completion throughout the project.

What happens if the contractor abandons the project?

If a contractor abandons work, you should document the state of the project with photos and written notes, then send a formal written notice demanding they resume work or terminate the agreement. If the contractor fails to respond, you may hire another contractor to complete the work and pursue the original contractor for damages, including the cost difference and any deposits paid for unperformed work.

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