When You Need a Contract
- Legally required: Most states require written contracts for residential building work over $5,000-20,000
- Good practice: Any job over $1,000
- Essential: Any renovation or structural work
What to Include
- Full legal names and contact details
- License and insurance numbers
- Detailed scope of work
- Materials and specifications
- Total contract price
- Payment schedule
- Start and completion dates
- Variations clause
- Warranty terms
- Dispute resolution process
Payment Schedules
Typical payment structure:
- Deposit: 10-20% (never more than 10% for contracts over $20,000 in most states)
- Progress payments: Tied to completed stages
- Final payment: 5-10% on completion