Almost every argument on a home build traces back to something the contract didn’t say. These are the questions worth asking while you can still walk away, grouped by when they matter. None of them is rude, and a good contractor will have the answers ready.
Before you pick a contractor
- Are you licensed for this work in this state, and what’s the number? Then look it up on the state board’s site yourself. In California, for example, a license is needed for any job over $1,000 in labor and materials, or any job that needs a permit.
- Who carries general liability and workers’ comp, and can I have the certificates? Ask for the certificates to come from the insurer or agent, not as a photocopy.
- Who pulls the permits? It should be the contractor, in their name.
- If the house was built before 1978, are you EPA lead-safe certified? Renovation that disturbs painted surfaces in older homes needs a certified firm and renovator.
- Can I speak to two clients whose jobs finished in the last year?
Money
- How much is the deposit? Some states cap it. California home improvement contracts allow the lesser of $1,000 or 10% of the price.
- What is the payment schedule, and what has to be finished before each payment? Payments should follow work done, not dates on a calendar.
- Is any of each payment held back until the end, and when is it released?
- What’s in the price as an allowance, and what happens if I choose something dearer? Allowances for fixtures, flooring and appliances are where budgets drift.
- Will you give me lien waivers from your subs and suppliers with each payment? Without them, an unpaid supplier can put a lien on your home even though you paid the contractor. See the lien waivers guide.
When the plan changes
- How are changes priced and agreed? The only good answer is: in writing, with a price and any time added, signed before the work starts.
- What happens if you find something behind a wall? Ask how hidden conditions are priced.
- Who decides when the work is “done”, and how is the punch list handled?
- What happens if the job runs late? Is there a finish date in the contract, and does anything follow if it’s missed?
Paper and protections
- Does the contract show your license number, start and finish dates, and the payment schedule? Several states require these in home improvement contracts.
- Do I have a right to cancel? Under the FTC’s Cooling-Off Rule, a contract signed in your home generally gives you three business days to cancel, and some states add their own rules.
- What warranty do you give, from what date, and in writing?
- Who on site is my day-to-day contact?
- How will you show me progress against the budget? A monthly statement of what’s been billed against each part of the job beats a single running total.
- How do we settle a disagreement? Mediation, arbitration or court, and in which county.
This is a checklist to help you ask the right questions, not legal advice. Your state’s home improvement laws, and the contract you sign, are what count. For a large build, have a local construction attorney read the contract first.