What Homeowners Should Know Before Signing a Construction Contract
10/16/20265 min read
Planning a home renovation, kitchen remodel, bathroom upgrade, or home addition is an exciting step. Before construction begins, however, one of the most important things you can do is understand the contract you are signing.
A construction contract establishes the expectations between you and your contractor. It outlines the work to be completed, the cost, the payment schedule, and each party's responsibilities. Taking the time to review these details can help prevent misunderstandings, unexpected expenses, and unnecessary delays.
For homeowners planning a construction project in Western Massachusetts, here are some important things to know before signing a construction contract.
1. Make Sure the Scope of Work Is Clearly Defined
One of the first things to review is the scope of work. This section should explain exactly what your contractor will complete as part of the project.
For example, a kitchen remodeling contract might include cabinet installation, countertops, flooring, lighting, plumbing work, and painting. If certain tasks are not included, those exclusions should also be clearly identified.
Before signing, make sure you understand:
Which rooms and areas are included in the project
What materials and finishes will be installed
Which tasks are included in the quoted price
What work is excluded
Whether cleanup and debris removal are included
A detailed scope of work helps ensure that you and your contractor have the same understanding of the finished project.
2. Understand the Total Cost and Payment Schedule
Your construction contract should clearly explain the agreed-upon price and how payments will be handled.
Some projects use a fixed contract price, while others may involve allowances, unit prices, or other pricing arrangements. Make sure you understand which pricing method applies to your project.
Review the payment schedule carefully. Confirm when payments are due, what milestones trigger each payment, and whether any additional costs could arise during construction.
In Massachusetts, home improvement contracts for covered residential projects generally have specific statutory requirements, including payment-schedule restrictions. Ask your contractor to explain the schedule and make sure it complies with applicable law.
Do not rely solely on a verbal explanation of the price. Important financial terms should be documented in the signed agreement.
3. Review Material Selections and Allowances
Materials can significantly affect the appearance and cost of a renovation. Your contract should identify the products and finishes included whenever those selections have been made.
For items that have not yet been selected, the contract may include allowances for materials such as:
Flooring and tile
Kitchen cabinets and countertops
Bathroom fixtures
Lighting and plumbing fixtures
Doors and windows
An allowance is a budgeted amount for a particular item or selection. If your final choice costs more than the allowance, you may have to pay the difference, depending on the contract terms.
Ask how allowances are calculated and whether installation, delivery, taxes, and other related expenses are included. Understanding these details early can help you avoid surprises when choosing finishes.
4. Confirm Who Is Responsible for Permits
Depending on the project, construction may require building, electrical, plumbing, or other permits.
Your contract should explain who is responsible for obtaining the necessary permits, coordinating inspections, and arranging any required approvals.
This is especially important for home additions, structural changes, basement finishing, and major kitchen or bathroom renovations.
In Massachusetts, permit requirements depend on the work being performed and the applicable local regulations. Homeowners should confirm that the project will be completed in accordance with the relevant building codes and permit requirements.
Make sure responsibilities are clearly documented before work begins.
5. Verify Contractor Registration, Licensing, and Insurance
Before signing a construction contract, take time to verify the contractor's credentials.
For covered residential home improvement work in Massachusetts, contractors generally need the appropriate Home Improvement Contractor (HIC) registration. Certain construction activities also require a Construction Supervisor License (CSL), depending on the work and applicable requirements.
You should also ask for proof of appropriate insurance, including general liability coverage and workers' compensation coverage where required.
Consider confirming:
The contractor's HIC registration, when applicable
The appropriate CSL for the proposed work, when required
Current insurance documentation
The contractor's business information and references
These checks help you make a more informed decision before allowing construction work to begin on your property.
6. Know How Changes to the Project Will Be Handled
It is common for renovation plans to change. You may decide to upgrade a countertop, add lighting, modify a layout, or address an unexpected issue discovered during demolition.
Your contract should explain how changes are approved and documented.
A written change order should generally describe the additional or revised work, any price adjustment, and the effect on the project schedule. Both parties should agree to the change before the additional work proceeds, subject to applicable law and the contract terms.
Avoid relying on informal conversations alone. Keeping changes in writing helps maintain a clear record of what was agreed upon.
7. Discuss the Project Schedule and Possible Delays
Most homeowners want to know when construction will begin and when the project is expected to finish.
Your contract should provide a reasonable schedule or anticipated timeline, along with any important conditions that could affect it.
Construction schedules can be influenced by material availability, permit approvals, weather, subcontractor coordination, and unforeseen conditions inside an existing home.
Ask your contractor how schedule updates will be communicated and how delays will be handled.
Although not every delay can be prevented, clear communication and realistic expectations can make the construction process easier to manage.
8. Understand Warranties and How Issues Will Be Addressed
Before signing, review any workmanship warranties and manufacturer warranties that apply to your project.
Ask what the warranty covers, how long coverage lasts, and how you should report a problem after the work is completed. Understand whether different materials or installed systems have separate warranty terms.
Your contract should also explain how incomplete work, deficiencies, or disagreements will be handled.
Keep copies of the signed agreement, approved change orders, receipts, product information, permits, and other relevant documents. These records can be helpful if questions arise during or after the project.
9. Read the Cancellation Terms Carefully
Before signing, make sure you understand the contract's cancellation provisions and any applicable legal rights.
Certain Massachusetts home improvement contracts are subject to a statutory three-business-day cancellation right, with exceptions and specific requirements depending on the circumstances. The contract should include any notices required by applicable law.
Do not assume that every construction agreement has identical cancellation rules. Review the written notice, how cancellation must be delivered, and any applicable deadlines before signing.
If you are unsure about your rights or the wording of the contract, consider consulting a qualified Massachusetts attorney.
10. Never Feel Rushed Into Signing
A reputable contractor should give you a reasonable opportunity to review the agreement and ask questions.
Before signing, make sure you understand the scope of work, pricing, payment schedule, material allowances, permits, timeline, and change-order process.
Be cautious if important terms are left blank, promised work is missing from the document, or you are pressured to sign before receiving clear answers.
You should receive a complete copy of the signed contract and any attachments that form part of the agreement.
Taking a little extra time before signing can help establish a stronger working relationship and give everyone a clearer understanding of the project.
Planning a Home Renovation in Western Massachusetts?
A construction contract is more than paperwork. It is an important tool for setting expectations, documenting responsibilities, and helping your project move forward with fewer misunderstandings.
At Genwood Construction, we help homeowners throughout Western Massachusetts with residential remodeling, kitchen and bathroom renovations, home additions, and other construction projects. We believe clear communication, thoughtful planning, and attention to detail are essential parts of a successful renovation.
If you are planning a home improvement project in Western MA, contact Genwood Construction to discuss your plans and request a free estimate.
Contact Us
Get in touch for your next project
info@genwoodconstruction.com
(413)291-2215
Service Areas
Genwood Construction Inc proudly serves homeowners across Hampden County ( Westfield, Longmeadow, East Longmeadow, Agawam, West Springfield, Ludlow, Wilbraham, Palmer), Hampshire County (Northampton, Easthampton, Amherst, Hadley, South Hadley, Belchertown, Granby, Williamsburg), Franklin County (Greenfield, Montague, Deerfield, Orange, Turners Falls, Shelburne, Buckland, Sunderland), and Berkshire County (Pittsfield, Lenox, Great Barrington, North Adams, Adams, Williamstown, Lee, Stockbridge) in Western Massachusetts.
Phone
______________________________________
At Genwood Construction, we are committed to doing good, honest work by combining skilled craftsmanship, clear communication, and dependable service on every job we take on.
MA HIC 218098
MA Supervisor License CS-122518