All home improvement projects require a contract between the homeowner and the home improvement contractor. A contract protects both parties by clearly explaining what work will be done, how much it will cost, the time frame for completion of the project and other important details.

Read home improvement contracts carefully before signing. Homeowners may wish to have lawyers review the contract to make certain they are fully protected. Don’t be concerned that you’ll somehow insult the contractor if you insist your lawyer read the home improvement contract: an honest home improvement contractor will understand that clients need to fully understand legal contracts before signing.

Things to Look for in Home Improvement Contracts

Every home improvement contract is slightly different, of course, depending on the project, the contractor and the needs of the homeowner. Certain elements, however, should be present in all home improvement contracts.

The home improvement contract should include a detailed description of the work to be done, including any products or materials used, size, color and other details. This portion of the contract should also include the home improvement contractor’s responsibilities involving cleaning up the project site.

The payment schedule for home improvement projects should be also detailed. If the contractor hires subcontractors or employees, the contract should also indicate that the contractor is responsible for their payment. This prevents subcontractors from placing “mechanics liens” on the property in the event they are not paid for their services.

Home improvement contracts should include the contractor’s name, address and contractor license number. Any warranties or guarantees offered by the home improvement contractor should be included in the contract. Remember an old rule about legal contracts; if it isn’t in writing, it can’t be proved.

It’s always best to have contractors apply for any building permits needed to complete any home improvement projects. Your contract should clearly list who is responsible for acquiring building permits and any other paperwork.

What You Don’t Want in a Home Improvement Contract

Home improvement contracts should be complete: Never sign any contract that has any blank areas. In addition, most home improvement contracts are straightforward and easy to understand. Homeowners shouldn’t sign contracts that include plans or blueprints they don’t fully understand. If any part of a contract requires clarification, make certain that you understand it before signing.

The Three-Day Right to Cancel a Home Improvement Contract

In most states, you have a legal three-day right to cancel any signed contract. If you decide to cancel home improvement contracts during this three-day grace period, a written notice stating this must be sent to the contractor.

There are, however, some exceptions to the three-day grace period. Service or repair contracts for emergency repairs are not covered by the grace period, and in some states the grace period does not cover contracts negotiated at the home improvement contractor’s place of business. Make sure that you’re aware of your cancellation options before signing any home improvement contract.