You found a contractor you like. The price feels reasonable. They showed up on time and answered your calls. You’re ready to sign.
Before you do — take 10 minutes and read this. I’ve been building and remodeling homes in Connecticut for over 25 years, and I’ve seen what happens when homeowners skip this step. Some of it is ugly.
Here are five things to look at before your pen hits that contract.
1. Is There a Payment Schedule — and Does It Make Sense?
The payment schedule tells you a lot about a contractor. A reasonable schedule ties payments to milestones: deposit to start, payment after framing, payment after rough-in inspections, final payment on completion.
Red flags:
- A large upfront deposit (more than 10–15% is a yellow flag; more than 33% is a red flag)
- Payments due on dates rather than milestones (“50% due two weeks after start” regardless of what’s been done)
- Final payment required before the punch list is complete
A contractor who needs a massive deposit to start work may have cash flow problems. That’s your problem if they disappear or can’t pay their subs.
2. What Exactly Is — and Isn’t — Included?
Vague scope language is where renovation projects go sideways. “Kitchen remodel” means nothing. “Demo existing cabinets and install new, including island per plan” means something.
Read every line. If something’s not written down, assume it’s not included.
Ask specifically about:
- Permits (who pulls them, who pays for them)
- Dumpster and debris removal
- Temporary protection (dust walls, floor protection)
- Cleanup — during and at completion
- Allowances — if there’s a $2,000 tile allowance and you want $4,000 tile, you’re paying the difference
3. How Are Change Orders Handled?
Change orders are normal. Every renovation has surprises — a rotted sill plate, a hidden pipe in the wrong place, something the homeowner decides to add. What matters is how they’re handled.
The contract should state that all change orders must be in writing and signed by both parties before work begins. If it doesn’t say that, a contractor can claim almost anything is extra.
Also look at the markup on change orders. Some contracts specify that contractor overhead and profit applies to changes — that’s standard. But if it’s an unreasonably high percentage, flag it.
4. Is the Contractor Licensed and Insured — and Does the Contract Say So?
In Connecticut, any project over $200 requires a Home Improvement Contractor (HIC) registration. New home construction and major renovations require additional licensing. The contract should include the contractor’s license numbers.
Beyond licensing, you want:
- General liability insurance (protects you if something gets damaged)
- Workers’ compensation (protects you if someone gets hurt on your property)
- Proof of both — certificates, not just a verbal assurance
If a contractor is unlicensed or uninsured and something goes wrong, you could be holding the bill.
5. What’s the Dispute Resolution Process?
Nobody wants to think about disputes before a project starts. But it’s exactly when you need to think about it.
Most contracts have some language about what happens if there’s a disagreement — mediation, arbitration, or litigation. Understand what you’re agreeing to.
Also look for a lien waiver clause. Subcontractors and suppliers can file a mechanic’s lien on your property if they don’t get paid — even if you already paid the general contractor. A good contract includes language requiring the GC to provide lien waivers from subs as a condition of payment draws.
One-on-One with Scott Lagace
Want Someone to Review the Contract?
Send it over before we talk. I’ll review it with you line by line — what’s standard, what’s missing, and what to push back on. $175. No pitch, no agenda — just honest answers from someone who’s been building for 25 years.
The Bottom Line
Most contractors are honest, hardworking people who want to do a good job. But a vague contract protects the contractor, not the homeowner — and even a good contractor will use loose language to their advantage if a dispute arises.
Read the contract. Ask questions. If something doesn’t make sense, ask for it to be clarified in writing.
And if you want a contractor’s honest read on what you’re about to sign — that’s exactly what a consultation call is for.
