🏗️ 5 Must-Know Tips Before You Sign a Construction Contract
✨ Why This Matters
Introduction
Starting a renovation or construction project is exciting—but before the first hammer swings, there’s one critical document that sets the tone for everything: your construction contract.
Whether you’re updating a kitchen, building an office, or investing in a full property rehab, your contract is more than just paperwork. It outlines what’s being built, when, how much it will cost, and what happens if things change.
But here’s the problem: most people don’t fully read—or fully understand—the contract they’re signing. That’s where things can go sideways.
As a licensed general contractor, we’ve seen it all. So we’re breaking down the 5 most important things to understand before you sign—plus one bonus tip that even seasoned investors sometimes overlook.
✅ 1. Scope of Work: If It’s Not Written, It Doesn’t Exist
This is the heart of your contract. The scope of work should clearly list what’s being done—and what’s not. Everything you’ve discussed, from demolition to final finishes, must be included in writing.
Why it matters: If it’s not in the scope, it’s not part of the job. Verbal conversations or emails don’t hold weight once the contract is signed. Misunderstandings here lead to frustration, delays, and unexpected costs.
💡 Pro Tip: Ask your contractor to walk you through the scope line-by-line and don’t be afraid to ask, “Is this included?”
✅ 2. If It’s Not in the Contract, It’s a Change Order
A change order is any work that falls outside the original contract. Even small adjustments—like moving a wall outlet or upgrading a faucet—can trigger a change order with extra costs and added time.
Why it matters: Clients often assume these small tweaks are easy or included. In reality, change orders require new planning, materials, and sometimes permits.
💡 Pro Tip: Budget a contingency (10–15%) for changes just in case—but aim to finalize decisions before signing to keep costs predictable.
✅ 3. Understand the Type of Contract You’re Signing
There are a few common contract types, understand which you are signing: Examples are -
Lump Sum (Fixed Price): You pay a set price for the entire project.
Cost Plus: You pay the actual cost of labor/materials plus a markup or fee.
Why it matters: Lump sum gives budget predictability, while cost plus can offer transparency—but more risk if material/labor prices spike. Know what you’re agreeing to before you sign.
💡 Pro Tip: Ask your contractor how they track and share costs in a cost-plus contract—and how overages are handled.
✅ 4. Clarify Payment Terms + Reimbursement Expectations
Every contract should detail how and when payments are made. Are they tied to milestones (e.g., demo completed)? Will you owe deposits for materials or special orders?
Also, understand if you’ll be reimbursing the contractor for anything directly—like permit fees or dump fees.
Why it matters: Payment misunderstandings are one of the biggest causes of contractor-client conflict. Clear terms prevent tension.
💡 Pro Tip: Don’t issue the final payment until a walk-through has been done and punch list items are resolved.
✅ 5. Who’s Supplying the Finish Materials? Don’t Assume
Finish materials like tile, flooring, paint, light fixtures, and vanities can drastically change the cost of your project.
Why it matters: Sometimes contractors supply these items, sometimes clients do. If the contract doesn’t clearly say who’s responsible, you may end up with surprises—either in your budget or the design.
💡 Pro Tip: Always clarify brand, quality level, and supplier—especially for big-ticket or highly visible finishes.
🛠️ Bonus Tip: Check for Warranty + Termination Clauses
Many clients overlook these sections:
Warranties: How long is the workmanship or materials guaranteed?
Termination clause: Under what conditions can either party end the agreement?
Why it matters: This protects you in the long run. Projects don’t always go as planned—your contract should be your safety net.
💡 Pro Tip: A contractor who includes a workmanship warranty is showing confidence in their quality of work.
Final Thoughts
Your construction contract should be clear, complete, and easy to understand. It’s not just legal jargon—it’s your project’s foundation. If something feels unclear or missing, ask. A good contractor won’t shy away from explaining the details.
At Rocks + Cornerstones, we take the time to educate and empower our clients—because informed clients are the best partners.
Ready to Build with Confidence?
Have questions about a contract or planning your next renovation?
Contact us today — we’d love to help.
