Knowledge
Contracts & Scope
Most disputes start with a gap between what the contractor thought was included and what the customer expected. A clear scope of work closes that gap before the job starts.
This section gives plain-English guidance for documenting deposits, change orders, exclusions, completion criteria, and warranty terms. State law varies, so treat legal details as a starting point for local review.
What should a change order include?
A construction change order in practice: what triggers one, what has to be on it, and how to record the scope, price, schedule impact and approval before changed work starts.
What to do when you damage customer property
How to document property damage, tell the customer, check insurance reporting requirements and agree on the next step.
Asking for a deposit: what the law lets you do
Is a contractor deposit legal? Usually yes — but residential home improvement statutes, cancellation rules and trust-fund law all constrain how you take and hold it.
Settling a dispute without a lawyer
Steps for resolving a contractor–customer dispute: the written summary, a settlement offer, mediation, small claims court, and when to stop and call a lawyer.
Exclusions and assumptions, spelled out
Explain work excluded from an estimate and conditions assumed in its price, with examples and a written approval process for changes.
Holding your price when materials jump
A material price-escalation clause can protect a fixed-price estimate when lumber or copper moves before purchase.
What a home improvement contract needs
What to check in a residential home improvement contract: written scope, price, payment schedule, dates, signatures and required notices for the job’s state.
How to limit your liability as a contractor
Contractor liability limitation in practice: written exclusions, a damages cap in your own contract, the indemnity clauses to read before signing, and insurance coverage to check.
Mechanic's liens, in plain English
A mechanic's lien is a claim against the property itself. Here is how a mechanics lien works, the deadlines behind it, and how filing one wrong backfires.
How to write a clear scope of work
A contractor scope of work should name quantities, assumptions, and exclusions.
What a subcontractor agreement should cover
A subcontractor agreement should cover scope, payment timing, insurance proof, and indemnification before work begins.
Substantial completion and the punch list
Define substantial completion, record unfinished work on a punch list, and check the contract and local rules before requesting final payment.
The three-day right to cancel
When the FTC Cooling-Off Rule applies to a contractor’s sale, which notices it requires, how to count the deadline and which state rules to check.
How to write a time-and-materials agreement
Write the scope, labor rates, material charges and spending cap before work starts, then support time-and-materials bills with daily records.
Why verbal agreements fall apart
Verbal agreements can be hard to prove, and some contractor agreements must be written. Record the scope, price, timing and customer approval.
How to write contractor warranty language
State what your workmanship warranty covers, its duration and claim process, and check which product and state-law protections also apply.
What can you charge when a customer cancels?
Check cancellation rights, document completed work and material costs, and calculate any lawful balance or refund under the contract.
When you need a contractor license
Do I need a contractor license? It is really three questions — state licensing, trade licensing and permits — and they have different answers.
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