Contract template

Remodeling contract template

A remodel is the job where a vague contract costs the most: the work runs for weeks, the homeowner lives with it, and every choice they make along the way can move the price. This template is for general home remodeling, from finishing a basement to opening up a floor plan, with allowances, a milestone payment schedule and a firm change-order rule. Read it below, then send it from SignMaster.

Updated November 5, 2026 · 4 min read

The contract

Gray blanks are yours to fill in before you send. Each signer fills in the blanks in their color.

  • You, before sending
  • Homeowner
  • Contractor

Remodeling Contract

This Remodeling Contract (the "Contract") is made on Contract date between Contractor business name, license number License number (the "Contractor"), and Homeowner name (the "Homeowner").

1. The property

The work will be done at Property address. The Homeowner confirms they own the property or have the owner's written permission for this work.

2. Plans and scope of work

The work follows these plans and specifications: Plans and specifications. The Contractor will supply the labor, materials, equipment and supervision for:

  • Demolition: Demolition.
  • Framing and structural work: Framing and structural work.
  • Electrical, plumbing and HVAC: Mechanical work.
  • Insulation, drywall and paint: Drywall and finishes.
  • Flooring, trim and doors: Flooring and trim.
  • Other work: Other work.

Work not described in this section or in the plans is not included.

3. Allowances

The price includes these allowances for items the Homeowner will choose:

  • Flooring: Flooring allowance
  • Light fixtures: Lighting allowance
  • Plumbing fixtures: Plumbing fixture allowance
  • Other: Other allowance item, Other allowance amount

Each allowance covers the cost of the item itself; installation is included in the price. If a selection costs more than its allowance, the difference plus Markup on overages percent percent is added by change order; if it costs less, the difference is credited. The Homeowner will make all selections by Selection deadline, and late selections may delay the schedule. Homeowner's initials: Allowance initials

4. Schedule

Work is expected to start on or about Estimated start date and take about Estimated weeks weeks. The schedule is extended by change orders, late selections, inspection timing, weather, material delays and hidden conditions under section 7. The Contractor will update the Homeowner on progress at least weekly.

5. Price and payment schedule

The total price is Contract price, paid as follows:

  1. Deposit: Deposit when this Contract is signed.
  2. Payment 2 when Payment 2 milestone.
  3. Payment 3 when Payment 3 milestone.
  4. The balance at substantial completion, except Punch list holdback, which is paid when the punch list in section 11 is finished.

Each payment is due within Days to pay days of the Contractor's invoice for that milestone. Accepted payment methods: Payment methods.

6. Change orders

Any change to the work, the allowances, the price or the schedule must be set out in a written change order signed by both parties before the changed work starts. Each change order states the work added or removed, its price, and its effect on the schedule.

7. Hidden conditions

If demolition or later work reveals a condition that couldn't reasonably be seen before, such as rot, mold, termite damage, outdated or unsafe wiring or plumbing, or a structural problem, the Contractor will stop work in that area, show the Homeowner, and propose a change order. To keep the house safe or weather-tight, the Contractor may make urgent repairs costing up to Urgent repair cap without waiting, and will document them. Asbestos and lead hazards will be handled by qualified specialists, at the Homeowner's cost.

8. Permits and inspections

The Contractor will obtain the permits the work needs and schedule the required inspections. Permit fees are included in the price. Work will be left open for inspection where the inspector requires it.

9. Living in the home during the work

Work hours are Work hours. The Contractor will put up dust barriers where practical, protect floors along the path to the work area, and clean up daily. The Homeowner will keep children and pets out of the work areas, remove valuables, and give the crew access to Crew bathroom and power. Areas off limits to the crew: Areas off limits.

10. Subcontractors and lien waivers

The Contractor may use licensed subcontractors and is responsible for their work. With each payment after the deposit, the Contractor will provide its own lien waiver for the amount paid and, on request, waivers from the subcontractors and suppliers paid from the previous payment.

11. Completion and punch list

The work is substantially complete when it can be used for its purpose with only minor items left. The parties will then walk through together and make a written punch list, which the Contractor will finish within Punch list days days.

12. Warranty

The Contractor warrants its workmanship for Workmanship warranty in years year(s) from substantial completion and will repair defects in its work at no charge. Products carry their makers' warranties. The warranty does not cover normal wear, settling and minor drywall cracks, damage from misuse or lack of maintenance, or work done by others.

13. Insurance, cancellation and general terms

The Contractor carries general liability insurance, and workers' compensation where the law requires it, and will show proof on request. If this Contract was signed at the Homeowner's home, the Homeowner may have a legal right to cancel within three business days, and the Contractor will provide a written notice explaining how. The parties will try to settle disagreements by talking first. This Contract, with its plans and change orders, is the whole agreement, and is governed by the laws of the state of State. Electronic signatures count as original signatures.

Homeowner contact details

Phone: Homeowner phone Email: Homeowner email

I have read sections 3 and 7, on allowances and hidden conditions.

Homeowner

SignaturePrinted nameDate signed

Contractor

SignaturePrinted nameDate signed
Use this template

Opens it in SignMaster as a template you can edit and send.

A starting point, not legal advice. Have a lawyer review it for your state and situation.

On this page
  1. The contract
  2. What a remodeling contract has to do
  3. What the template covers
  4. Remodeling contract mistakes
  5. How to send it with SignMaster
  6. Handling changes during the job
  7. Questions

What a remodeling contract has to do

A remodeling contract has to hold up for the length of the project. It sets the scope from plans or a written description, prices the decisions the homeowner hasn't made yet as allowances, ties payments to visible progress, and says how changes and surprises behind the walls are handled. Done well, it lets you and the homeowner disagree about a tile without disagreeing about money.

Kitchens and bathrooms have their own lead times and trade sequences, so they have their own templates: the kitchen remodel contract and the bathroom remodel contract. This one fits basements, attic conversions, whole-floor renovations and projects that touch several rooms.

What the template covers

  • Plans and scope: the drawings or specifications by name and date, then the work by trade, from demolition to trim.
  • Allowances: set amounts for flooring, lighting and fixtures the homeowner picks later, a selection deadline, and how overages and credits are settled.
  • Schedule: a start date, an estimated length in weeks, and what extends it: changes, late selections, inspections, weather and hidden conditions.
  • Payment schedule: a deposit, payments at milestones you name, and a holdback until the punch list is finished.
  • Hidden conditions: rot, mold, termite damage and unsafe wiring found after demolition, and a cap on urgent repairs you can make without waiting.
  • Living in the house: work hours, dust barriers, rooms that are off limits, and the crew's access to a bathroom and power.
  • Subcontractors and lien waivers: you answer for your subs, and waivers come with each payment.
  • Completion and warranty: substantial completion, the punch list, and your workmanship warranty.

Remodeling contract mistakes

  • Allowances set too low. A lighting allowance that buys only builder-grade fixtures becomes a change order the homeowner resents. Set each allowance at what they're likely to choose.
  • Payments that run ahead of the work. If you're paid for drywall before it's hung, the homeowner carries the risk; long after, you do. Tie each payment to a milestone you can both see.
  • Saying yes to "while you're here" requests on the spot. Unpriced extras are the classic remodeling dispute. Price each one and get it signed first.
  • Silence about hidden conditions. Old houses hide surprises, so say up front that work behind walls is priced when it's found.
  • Skipping lien waivers. If a supplier or sub goes unpaid, the homeowner can face a lien even after paying you in full. Hand over waivers with each payment.

State home improvement laws

Many states regulate home improvement contracts with required wording, license display, deposit limits and cancellation rights. California, for example, caps the down payment on most home improvement contracts at $1,000 or 10% of the price, whichever is less. Check your state's rules and set the payment schedule to match. If your state requires set wording, cover the old line with the editor's White-out tool and type the new one in a Text box.

How to send it with SignMaster

  1. 1

    Open the template

    Choose Use this template. It opens with the homeowner and your company as the two signers, in that order.

  2. 2

    Fill in scope and allowances

    Use the gray blanks for the plans reference, the work by trade, each allowance and the payment milestones. Labels like Flooring allowance and Payment 2 milestone make the fields easy to find later.

  3. 3

    Include the plans

    Add the drawings and the specification sheet as extra documents in the same envelope before sending, so the plans the homeowner signs are the plans you build from.

  4. 4

    Collect signatures

    The homeowner signs from the email link or at the kitchen table with Sign in person, initialing the allowances section on the way. You countersign last.

  5. 5

    Make it the job file

    Both of you get the signed PDF with its certificate of completion. Every change order you send during the job points back to it.

Handling changes during the job

On a remodel, change orders are constant. Keep a change order template next to this one in SignMaster and send each change while you're standing in the room with the homeowner. Each signed change comes back with its own certificate, so at the end of the job you have a dated record of what was added, what it cost and who approved it. See how to write a change order.

Questions? Answers.

What is an allowance in a remodeling contract?

A set amount in the price for something the homeowner hasn't chosen yet, like light fixtures or tile. If their choice costs more, they pay the difference by change order; if it costs less, they get a credit.

How should remodeling payments be scheduled?

A modest deposit, then payments tied to milestones you can both see, such as a passed rough-in inspection or finished drywall, with a holdback until the punch list is done. Check your state's deposit limits first.

Do I need lien waivers on a remodel?

It's good practice. A waiver from you, and from major subs and suppliers, with each payment shows the homeowner that the money reached the people who did the work. See what is a lien waiver.

Can the homeowner cancel a remodeling contract?

If it was signed at their home, federal and state cooling-off rules often allow three business days to cancel. After that, cancellation follows the contract: the homeowner pays for work done and materials already ordered.

Sources

  1. California Business and Professions Code § 7159.5 · leginfo.legislature.ca.gov
  2. 16 CFR Part 429: Rule concerning cooling-off period for sales made at homes · ecfr.gov

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