Home Improvement Contract
This Home Improvement Contract (the "Contract") is made between [Contractor business name] ("Contractor"), of [Contractor business address], licence or registration number [Contractor licence or registration number], and [Homeowner full name(s)] ("Owner"), for work at [Property address where the work is done] (the "Property"). Contractor and Owner are each a "Party" and together the "Parties".
1. The Work
Contractor shall furnish all labor, materials, equipment and services to complete the following work at the Property (the "Work"): [Scope of work]. The Work shall be performed in accordance with the plans, specifications and estimate attached to or referred to in this Contract, which form part of it, and with applicable building codes.
The following are not included in the Work: [Excluded from the work (or "None")]. Materials shall be new and of the quality specified or, where none is specified, of a standard grade suitable for the purpose. Owner shall choose Owner-selected items by the dates Contractor reasonably requests so as not to delay the Work.
2. Contract Price
Owner shall pay Contractor [Contract price] for the Work (the "Contract Price"), subject to adjustment only by written change order under Section 4. The Contract Price includes all labor, materials, supervision, equipment, debris removal and, where Section 5 so provides, permit fees. It excludes sales tax on materials if separately stated by law, and any work outside the Work.
3. Payment Schedule
Owner shall pay the Contract Price as follows. A down payment of [Down payment due on signing] is due on signing, after the cancellation period in Section 11 has expired. Progress payments are due as each stage described here is completed: [Progress payment schedule]. The final payment is due upon final completion, meaning completion of all Work including punch-list items, final inspection where a permit was required, delivery of manuals and warranties, and delivery of the lien releases described in Section 10.
No progress payment shall exceed the value of the Work completed and materials delivered to the Property at the time of payment. Contractor shall invoice each payment, and Owner shall pay within five (5) days of receipt, but may withhold a reasonable amount for defective work identified in writing until it is corrected. Late amounts accrue interest at one percent (1%) per month or the highest lawful rate, whichever is less, and Contractor may suspend the Work after seven (7) days’ written notice of non-payment.
4. Change Orders
Any change to the Work, the Contract Price or the schedule, including extra work, substituted materials, or work required by hidden or unforeseen conditions such as rot, mold, asbestos, faulty prior work or subsurface conditions, shall be set out in a written change order stating the change, the price and any schedule adjustment, signed by both Parties before the changed work begins. Approval by email is sufficient. Contractor is not entitled to payment for extra work performed without a signed change order, and Owner shall not require extra work without one. Where a hidden condition makes it unsafe to continue without immediate action, Contractor may take that action and the Parties shall promptly document it by change order.
5. Permits and Inspections
Building permits and inspections required for the Work shall be obtained by: [Permits obtained by]. Contractor shall schedule and be present for required inspections and shall not cover work that requires inspection until it has passed. Owner shall provide any documents the permitting authority requires from the property owner, including homeowners’ association approvals. Neither Party shall proceed with work that requires a permit until it is issued.
6. Schedule
Contractor shall begin the Work on or about [Approximate start date] and shall achieve substantial completion on or about [Approximate substantial completion date], meaning the Work is complete except for minor punch-list items that do not prevent Owner from using the improved area for its intended purpose. These dates are extended by delays caused by change orders, Owner’s late decisions or selections, unavailability of Owner-selected materials, hidden conditions, permit or inspection delays, severe weather, or other causes beyond Contractor’s reasonable control, and Contractor shall notify Owner promptly of any such delay. Contractor shall work diligently and keep the site reasonably clean and safe throughout.
7. Subcontractors, Materials and Site
Contractor may use licensed subcontractors and is responsible for their work as for its own, and shall pay them and suppliers promptly from the payments received. Contractor shall protect Owner’s property adjacent to the Work, remove debris regularly and on completion, and follow lead-safe practices for pre-1978 homes. Contractor is not responsible for existing conditions, code violations or defects in prior work unless the Work includes correcting them.
8. Owner’s Responsibilities
Owner shall provide access during normal working hours, water and electricity, and a clear work area; shall remove or protect furnishings and valuables and keep children and pets away from the work area; shall make selections promptly; and shall direct Contractor’s employees and subcontractors only through Contractor. Owner represents that Owner owns the Property or has the owner’s written authority to contract for the Work, and shall disclose known hazards, hidden utilities and prior problems in the work area.
9. Insurance and Licence
Contractor carries the following insurance and shall maintain it for the duration of the Work: [Insurance carried (liability and workers’ comp)]. Contractor shall provide certificates on request. Contractor represents that its licence or registration is current and in good standing and that it is licensed to perform the Work in the jurisdiction of the Property. Owner is encouraged to verify the licence with the state contractor licensing board before signing and to maintain homeowner’s insurance covering the Property during the Work.
10. Notice About Mechanics Liens; Lien Releases
NOTICE TO OWNER: Under the mechanics lien laws of most states, any contractor, subcontractor, laborer, supplier or other person who helps to improve your property but is not paid for their work or supplies has a right to place a lien on your home and to sue you in court to obtain payment. This means that after a court hearing, your home could be sold by a court officer and the proceeds used to pay the debt. This can happen even if you have paid your contractor in full, if the subcontractor or supplier remains unpaid. To protect yourself, you may request that Contractor provide lien releases from every subcontractor and supplier with each payment.
With each progress payment request, Contractor shall deliver conditional lien releases from itself and each subcontractor and supplier for that stage, and with the next payment, unconditional releases for amounts previously paid. Final payment is conditioned on unconditional final lien releases from Contractor and all subcontractors and suppliers.
11. Owner’s Right to Cancel
YOU, THE OWNER, MAY CANCEL THIS TRANSACTION AT ANY TIME PRIOR TO MIDNIGHT OF THE THIRD BUSINESS DAY AFTER THE DATE OF THIS TRANSACTION. If you cancel, any property traded in, any payments made by you under the contract, and any negotiable instrument executed by you will be returned within ten (10) business days following receipt by Contractor of your cancellation notice, and any security interest arising out of the transaction will be cancelled. If you cancel, you must make available to Contractor at your residence, in substantially as good condition as when received, any goods delivered to you under this contract, or you may, if you wish, comply with the instructions of Contractor regarding the return shipment of the goods at Contractor’s expense and risk.
To cancel, send a signed and dated written notice stating that you cancel this Contract, which may be by email to Contractor’s address in the execution record, no later than midnight of the third business day after you sign. Contractor shall not begin the Work or order custom materials before the cancellation period expires unless Owner waives it in a separate signed writing for a bona fide emergency.
12. Warranty
Contractor warrants that the Work will be free from defects in workmanship for [Workmanship warranty (years)] year(s) after substantial completion, and shall repair or replace, at its expense, any defective Work reported in writing during that period. Contractor shall assign to Owner all manufacturers’ warranties on materials, fixtures and equipment. This warranty does not cover normal wear, settlement, materials supplied by Owner, damage caused by Owner’s misuse or neglect, work by others, or conditions Contractor was not engaged to correct. This warranty is in addition to any warranty implied by law that cannot be disclaimed.
13. Termination and Disputes
Either Party may terminate this Contract by written notice if the other materially breaches it and fails to cure within ten (10) days after written notice of the breach. On termination, Owner shall pay for Work properly performed and materials delivered to that date, less the cost of correcting defective Work and any damages caused by Contractor’s breach. The Parties shall meet in good faith within fourteen (14) days of written notice of any dispute and may agree to mediate before litigation. The prevailing Party in any action arising out of this Contract is entitled to reasonable attorney fees and costs. Owner may contact the state contractor licensing board with complaints about a licensed contractor.
14. General
This Contract is governed by the laws of the State of [Governing law (state)]. It, with the attached plans, specifications and any change orders, is the entire agreement between the Parties about the Work and supersedes all prior estimates and proposals. It may be amended only by a written change order or a writing signed by both Parties. If any provision is held unenforceable, the rest remains in effect. Contractor is an independent contractor. Neither Party may assign this Contract without the other’s written consent.
This Contract may be signed electronically and in counterparts, and the electronic execution record, timestamps and document fingerprints kept by the signing platform are conclusive evidence of its execution. Owner acknowledges receiving a complete copy of this Contract, including the Notice of Cancellation in Section 11, when signing.
Signatures
Contractor · Homeowner