A construction contract defines everything you are buying. Most homeowners sign without reading carefully, giving up protections they did not know they had. Here is what to look for.
What a Good Contract Includes
An itemised scope with specific materials, a fixed price or clear pricing methodology, a milestone-based payment schedule, a start and completion date, a written change-order process, workmanship warranty terms, and a dispute resolution clause.
Payment Schedule Red Flags
California law limits deposits on residential improvement contracts to the lesser of 10 % of the contract price or $1,000. Contractors asking for 20–50 % upfront are either uninformed or in financial trouble. Both are red flags.
Change-Order Language
Your contract should require written homeowner authorisation before any additional work proceeds. Contracts that allow the contractor to add scope without approval expose you to surprise charges.
Dispute Resolution
Complaints against licensed contractors can be filed with the CSLB at cslb.ca.gov. The CSLB Contractors Recovery Fund can compensate homeowners up to $12,500 per project for losses from licensed contractor misconduct.