Home Improvement Contract Sample

Home Improvement Contract

This agreement is made on the date written above our signatures between

Contractor Name: _______________________________________________________ (Contractor) and

Owner Name: __________________________________________________________ (Owner).

Contractor

Any Notice of Cancellation can be sent to this address.

Contractor Name: _______________________________________________________________________

Address: ______________________________________________________________________________

City: ______________________________________________________, State: ________ Zip: _________

Work Phone Number: ___________________________________________________________________

Cell Phone Number: ____________________________________________________________________

Fax Number: __________________________________________________________________________

Email Address: _________________________________________________________________________

License Number: _______________________________________________________________________

Contractor Name: ___________________________________ will be referred to as C ontractor throughout

this agreement.

Salesperson Responsible for Soliciting or Negotiating this Contract:

Name of Salesperson: ___________________________________________________________________

Registration Number of Salesperson: _______________________________________________________

Owner

Owner Name: __________________________________________________________________________

Address: ______________________________________________________________________________

City: ______________________________________________________, State: ________ Zip: _________

Day Phone Number: ____________________________________________________________________

Cell Phone Number: ____________________________________________________________________

Fax Number: __________________________________________________________________________

Email Address: _________________________________________________________________________

Owner Name: ______________________________________ will be referred to as Owner throughout this

agreement.

Date this contract was signed by Owner: ____/____/____

You are entitled to a completely filled-in copy of this agreement, signed by both you and the

contractor, before any work may be started.

The Construction Site

Address: ______________________________________________________________________________

City: _____________________________________________________, California Zip: _________

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I. Description of the Project and Description of the Significant Materials to be Used and

Equipment to be Installed

A. For a price identified below, Contractor agrees to com plete home improvements (identified as the

Project in this agreement) for Owner.

B. Description of the work, materials and equipment to be installed:

_____________________________________________________________________________________

_________________________________________________________

II. Contract Price

A. In addition to any other charges specified in this agreement, Owner agrees to pay Contractor

$_________________ for completing the Work described as the Project.

III. Approximate Start Date

A. Work under this agreement will begin any time after this contract is signed by Contractor and

Owner.

B. The Project will be considered substantially commenced when tools and materials arrive at the Job

Site.

IV. Approximate Completion Date

A. Work under this agreement will be Substantially Complete on or before ____/____/____.

V. List of Documents Incorporated into this Contract

A. The Glossary of Terms which follows our signatures is incorporated into this contract as though

included in full as p art of this agreement.

B. This agreement incorporates by reference certain disclosures and notices required by federal and

state law. The following documents are incorporated as though included in full as part of this agreement.

1. Information about Commercial General Liability Insurance

2. Checklist for Homeowners

3. California Home Improvement Contract - Change Order Form

4. Notice of Three-Day Right to Cancel

5. Notice of Cancellation (in duplicate)

6. Notice of Right to Cancel Under Regulation Z (in duplicate)

VI. Scope of Work

A. Contractor shall supervise and direct the Work and accepts responsibility for construction means,

methods, techniques, sequences and procedures required to com plete the Project in compliance with the

Contract Documents.

VII. Cutting and Patching

A. The color, texture and planes between existing and new materials might not match exactly.

Contractor will use du e diligence to create the best match possible. Owner acknowledges that patched

surfaces may be detectable when construction is complete.

VIII. Compliance with Law

A. Contractor and Owner mutually commit to use reasonable care to meet the Requirements of state,

federal and local Law when discharging their responsibilities under this agreement.

IX. Owner's Responsibilities

A. Owner shall have sole responsibility to secure financing for the Project and shall pay all fees,

charges, or other costs of such financing, including Inspection fees charged by any lender. The

nonperformance of any lender shall not affect the obligation of Owner to Contractor. Owner hereby

authorizes and directs any lender on the Project to furnish Contractor with full information on undisbursed

loan proceeds when requested by Contractor.

B. Owner will not interfere with or permit others to interfere with, stop, hinder, or delay completion of

the Work by Contractor or Subcontractors except as prov ided under this agreement.

X. Representations by Contractor

A. Owner has reported to Contractor all conditions known to Owner which may not be apparent to

Contractor and which might significantly increase cost of the Work or delay completion. These concealed

conditions include, but are not limited to, hazards on the Job Site, unsu i table soil co nditions, prior

Defective Work of others, latent Defects in the Plans or Specifications, ea rlier attempts to do Similar or

related Work, and obligations imposed by government.

XI. Disclaimer by Owner, Reliance by Contractor

A. Owner has provided Contractor with information on subsurface or concealed conditions at the Job

Site. Except to the extent that Contractor knows this information to be false, Contractor is entitled to rely

on the accuracy of this information.

XII. Payment Plan

A. Owner will pay to Contractor the Contract Price in 2 in stallments, an initial payment and a final

payment on completion of the Work.

XIII. Downpayment

A. The downpayment is $_____________________.

THE DOWNPAYMENT MAY NOT EXCEED $1,000 OR 10 PERCENT OF THE CONTRACT

PRICE, WHICHEVER IS LESS.

B. Upon execution of this agreement, Owner shall pay to Contractor $___________________ as an

advance on the Contract Price.

C. Except as otherwise provided in this agreement, Contractor may retain $__________________ from

the initial payment as a non-refundable deposit if this contract is terminated for any reason other than

default by Contractor.

XIV. Interest

A. Payments due and not paid under the Contract Documents shall bear interest from the date payment

is due at a monthly rate of ________ percent.

B. When payment is withheld pending settlement of a bona fide dispute on the quantity, quality, or

timeliness of the Work, interest shall accrue only on the amount ultim ately paid.

C. Payment of interest does not abrogate or replace any other rights Contractor may have under this

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agreement.

XV. Liens and Waivers

Mechanics' Lien Warning

Anyone who helps improve your property, but who is not paid, may record what is called a mechanics' lien

on your property. A mechanics' lien is a claim, like a mortgage or home equity loan, made against your

property and recorded with the county recorder.

Even if you pay your contractor in full, unpaid subcontractors, suppliers, and laborers who helped to

improve your property may record mechanics' liens and sue you in court to foreclose the lien. If a court

finds the lien is valid, you could be forced to pay twice or have a court officer sell your home to pay the

lien. Liens can also affect your credit.

To preserve their right to record a lien, each subcontractor and material supplier must provide you with a

document called a '20-Day Preliminary Notice'. This notice is not a lien. The purpose of the notice is to let

you know that the person who sends you the notice has the right to record a lien on your property if he or

she is not paid.

BE CAREFUL. The Preliminary Notice can be sent up to 20 days after the subcontractor starts work or the

supplier provides material. This can be a big problem if you pay your contractor before you have received

the Preliminary Notices.

You will not get Preliminary Notices from your prime contractor or from laborers who work on your

project. The law assumes that you already know they are improving your property.

PROTECT YOURSELF FROM LIENS. You can protect yourself from liens by getting a list from your

contractor of all the subcontractors and material suppliers that work on your project. Find out from your

contractor when these subcontractors started work and when these suppliers delivered goods or m aterials.

Then wait 20 days, paying attention to the Preliminary Notices you receive.

PAY WITH JOINT CHECKS. One way to protect yourself is to pay with a joint check. When your

contractor tells you it is time to pay for the work of a subcontractor or supplier who has provided you with

a Preliminary Notice, write a joint check payable to both the contractor and the subcontractor or material

supplier.

For other ways to prevent liens, visit CSLB's Web site at www.cslb.ca.gov or call CSLB at 800-321-CSLB

(2752).

REMEMBER, IF YOU DO NOTHI NG, YOU RISK HAVING A LIEN PLACED ON YOUR HOME.

This can mean that you may have to pay twice, or face the forced sale of your home to pay what you owe.

Notice required by California Business and Professions Code § 7159(c)(4):

When payment is made for any portion of the work performed, Contractor shall prior to any further

payment being made, furnish to Owner a full and unconditional release from any claim or mechanics' lien

pursuant to § 3114 of the Civil Code for that portion of the work for which payment has been made.

XVI. Final Payment

A. Contractor will submit an application for final payment to Owner when the Work has been

completed in compliance with the Contract Documents. If Owner agrees that Work has been completed,

payment is due Contractor for the entire unpaid balance of the contract amount (including any Retainage).

B. Making of final payment constitutes waiver of all Claims by Owner against Contractor except those

Claims previously made in writing and delivered to Contractor and those obligations otherwise provided

by this agreement or by operation of Law.

C. If completion of the Work is delayed unreasonably at no fault of Contractor, Contractor shall be

entitled to final payment for all Work completed (including Retainage) without prejudice to the right of

Contractor to complete the Project at a later date and without prejudice to the right of Owner to make

Claims against Contractor for Defects in Work completed.

XVII. Changes in the Work

A. Contractor is authorized to make minor changes in the Work which are in the interest of Owner, do

not materially alter the quality or performance of the Work, and do not affect the cost or time of

performance, and comply with applicable Laws, codes, ordinances and regulations. Contractor will inform

Owner of each minor change made in the Work.

Note About Extra Work and Change Orders

Extra Work and Change Orders become part of the contract once the order is prepared in writing and

signed by the Parties prior to commencement of any Work covered by the new Change Order. The order

must describe the scope of the Extra Work or change, the cost to be added or subtracted from the contract,

and the effect the order will have on the schedule of progress payments.

Notice required by California Business and Professions Code § 7159(e)(3):

Owner may not require a contractor to perform extra work or change order work without providing written

authorization prior to the commencement of any work covered by the new change order. Extra work or a

change order is not enforceable against Owner unless the change order also identifies all of the following

in writing prior to the commencement of any work covered by the new change order:

(1) The scope of work encompassed by the order,

(2) The amount to be added or subtracted from the contract price, and

(3) The effect the change order will have on progress payments or the completion date.

Failure of Contractor to comply with the requirements of this paragraph does not preclude the recovery of

compensation for work based upon legal or equitable remedies designed to prevent unjust enrichment.

XVIII. Contractor Claims

A. If Contractor claims that any instruction, Drawing, act or omission of Owner or any representative of

Owner, or any agency of government, increases costs to Contractor, requires extra time or changes the

Scope of Work, Contractor shall have the right to assert a Claim for such costs or time.

XIX. Arbitration

A. Any controversy or Claim arising out of or relating to this contract o r contract warranty or the breach

thereof which cannot be resolved by mediations shall be settled by arbitration administered by the

American Arbitration Association under its Construction Industry Arbitration Rules, and judgment on the

award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.

B. Anything in this contract notwithstanding, any Claim arising out of or relating to the Contract

Documents or warranty or the breach thereof may, at the option of the Claimant, be filed in any Small

Claims Court having jurisdiction, in lieu of an arbitration proceeding.

XX. Insurance

A. General Requirements

1. Contractor shall carry workers' compensation insurance and public liability insurance as required by

Law and regulation for the protection of Contractor and Owner during progress of the Work.

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B. Commercial General Liability Insurance (CGL)

1. Contractor is self-insured. A notice concerning commercial liability insurance is attached to this

contract.

C. Worker's Compensation Insurance

1. Contractor has no employees and is exempt from workers' compensation regulations.

XXI. Information about the Contractors' State License Board (CSLB)

CSLB is the state consumer protection agency that licenses and regulates construction contractors.

Contact CSLB for information about the licensed contractor you are considering, including information

about disclosable complaints, disciplinary actions and civil judgments that are reported to CSLB.

Use only licensed contractors. If you file a complaint against a licensed contractor within the legal deadline

(usually four years), CSLB has authority to investigate the complaint. If you use an unlicensed contractor,

CSLB may not be able to help you resolve your complaint. Your only remedy may be in civil court, and

you may be liable for damages arising out of any injuries to the unlicensed contractor or the unlicensed

contractor's em ployees.

For more information:

Visit CSLB's Web site at www.cslb.ca.gov

Call CSLB at 800-321-CSLB (2752)

Write CSLB at P.O. Box 26000, Sacramento, CA 95826.

Signatures

This contract is for immediate acceptance. Any delay in acceptance beyo nd _____/_____/_____ will

require renegotiation of the terms of this agreement.

OWNER HAS THE RIGHT TO REQUEST A PERFORMANCE AND PAYMENT BOND ON THE

PROJECT WHICH ENSURES THE PROJECT WILL BE COMPLETED ACCORDING TO THIS

AGREEMENT AND THAT LIENS ON THIS JOB ARE DISCHARGED IN RETURN FOR PAYMENT

IN FULL BY OWNER.

You are entitled to a completely filled in copy of this agreement, signed by both you and the

contractor, before any work may be started.

The law requires that the contractor give you a notice explaining your right to cancel. Initial the

checkbox if the contractor has given you a notice of Three-Day Right to Cancel.

Owner's Initials ________________ Owner's Initials ________________

This agreement is entered into as of the date written below.

Owner Name: ________________________________________________, Owner

__________________________________ ____/____/____

(Signature) (Date)

__________________________________

(Printed Name)

__________________________________ ____/____/____

(Signature) (Date)

__________________________________

(Printed Name)

Contractor Name: ________________________________________________, Contractor

__________________________________ ____/____/____

(Signature) (Date)

__________________________________

(Printed Name and Title)

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Checklist for Homeowners

Check Out the Contractor

[ ] Did you contact the Contractors State License Board (CSLB) to check the status of the contractor's

license?

Contact the CSLB at 1-800-321-CSLB (2752) or visit our web site: www.cslb.ca.gov

[ ] Did you get at least 3 local references from the contractors you are considering?

Did you call them?

[ ] Building Permits - will the contractor get a permit before the work starts?

Check Out the Contract

[ ] Did you read and do you understand your contract?

[ ] Does the 3-day right to cancel a contract apply to you?

Contact the CSLB if you don't know.

[ ] Does the contract tell you when work will start and end?

[ ] Does the contract include a detailed description of the work to be done, the material to be used, and

equipment to be installed?

This description should include brand names, model numbers, quantities and colors. Specific descriptions

now will prevent disputes later.

[ ] Are you required to pay a down payment?

If you are, the down payment should never be more than 10 percent of the contract price or $1,000,

whichever is less.

[ ] Is there a schedule of payments?

If there is a schedule of payments, you should pay only as work is completed and not before. There are

some exceptions -- contact the CSLB to find out what they are.

[ ] Did your contractor give you a "Notice to Owner", a warning notice describing liens and ways to

prevent them?

Even if you pay your contractor, a lien can be placed on your home by unpaid laborers, subcontractors or

material suppliers. A lien can result in you paying twice or, in some cases, losing your home in a

foreclosure. Check the "Notice to Owner" for ways to protect yourself.

[ ] Did you know changes or additions to your contract must be in writing?

Putting changes in writing reduces the possibility of a later dispute.

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Information about Commercial General Liability Insurance

[ ] Did your contractor tell you whether he or she carries Commercial General Liability Insurance?

Home improvement contractors are required by law to tell you whether or not they carry Commercial

General Liability Insurance. This written statement must accompany the bid, if there is one, and the

contract.

[ ] Is this insurance required?

No. But the Contractors State License Board strongly recommends that all contractors carry it. The Board

cautions you to evaluate the risk to your family and property when you hire a contractor who is not

insured. Ask yourself, if something went wrong, would this contractor be able to cover losses ordinarily

covered by insurance?

[ ] How can you make sure the contractor is insured?

If he or she is insured, the contractor is required by law to provide you with the name and telephone

number of the insurance company. Check with the insurance company to verify that the contractor's

insurance coverage will cover your project.

[ ] What about a contractor who is self-insured?

A self-insured contractor has made a business decision to be personally responsible for losses that would

ordinarily be covered b y insurance. Before contr a c ting with a self-insured contractor, ask yourself, if

something went wrong, would this contractor be able to cover losses that should be covered by insurance?

Contractor is self-insured.

For more information about Commercial General Liability Insurance, contact the Contractors State

License Board at www.cslb.ca.gov or call 1-800-321-CSLB (2752).

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California Home Improvement Contract - Change Order Form

Contractor Name: _______________________________________________________________________

(License Number: ______________________________________________________________________)

Address: ______________________________________________________________________________

City: _________________________________________________, State: ___________ Zip: ___________

Name of Salesperson: ___________________________________________________________________

(Registration Number of Salesperson: ______________________________________________________)

Owner Name: _____________________________________________________________________ and

Contractor Name: __________________________________________ agree that the contract dated (Date)

____/____/____ is incorporated by reference in its entirety into this California Home Improvement

Change Order and is changed as described below.

Description of the Change and Description of the Significant Materials to be Used and Equipment to

be Installed Under this Change.

_____________________________________________________________________________________

[_] This change adds the following amount to the Contract Price: $ _______________________________

[_] This change reduces the Contract Price by the following amount: $ ____________________________

[_] Finance charge (if any) that results from this change: $ ______________________________________

[_] Effect this order will have on the Schedule of Progress Payments: _____________________________

_____________________________________________________________________________________

Payments due under this agreement are hereby adjusted to reflect this change in the Contract Price.

Payment for this change shall become due: (Date) ____/____/____.

Completion date of Work under this agreement, including this Change Order, is adjusted to:

(Date) ____/____/____.

Note about Extra Work and Change Orders

Extra work and change orders become part of the contract once the order is prepared in writing and signed

by the parties prior to commencement of any work covered by the new change order. The order must

describe the scope of the extra work or change, the cost to be added or subtracted from the contract, and

the effect the order will have on the schedule of progress payments. You are entitled to a completely filled

in copy of this agreement, signed by both you and the contractor, before any work may be started.

__________________________ ____/____/____ _______________________ ____/____/____

Owner's Signature Date Owner's Signature Date

_____________________________ ____/____/____

Contractor's Signature Date

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Notice of Three-Day Right to Cancel

Date of Transaction: ____/____/____

You, the buyer, have the right to cancel this contract within three business days. You may cancel by

emailing, mailing, faxing, or delivering a written notice to the contractor at the contractor's place of

business by midnight of the third business day after you received a signed and dated copy of the

contract that includes this notice. Include your name, your address, and the date you received the

signed copy of the contract and this notice.

If you cancel, the contractor must return to you anything you paid within 10 days of receiving the

notice of cancellation. For your part, you must make available to the contractor at your residence, in

substantially as good condition as you received it, any goods delivered to you under this contract or

sale. Or, you may, if you wish, comply with the contractor's instructions on how to return the goods

at the contractor's expense and risk. If you do make the goods available to the contractor and the

contractor does not pick them up within 20 days of the date of your notice of ca ncellation, you may

keep them without any further obligation. If you fail to make the goods available to the contractor,

or if you agree to return the goods to the contractor and fail to do so, then you remain liable for

performance of all obligations under the contract.

To cancel this transaction, mail or deliver a signed and dated copy of the Notice of Cancellation, or

any other written notice to:

Contractor Name: ____________________________________________________________________

Address: _____________________________________________________________________________

City: __________________________________________________, State: _________ Zip: __________

not later than midnight of (Date) ____/____/____

California Business and Professions Code Section § 7159 requires that this form be signed and dated

when the contract is signed.

My signature below acknowledges receipt of this Notice of Three-Day Right to Cancel and two

copies of the form Notice of Cancellation.

___________________________________ ____/____/____

Signature of Owner Date

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Fillable Printable Home Improvement Contract Sample

Fillable Printable Home Improvement Contract Sample