A step-by-step walkthrough of how to review a contractor’s agreement before signing
Legal Disclaimer
This guide is for educational purposes only and does not constitute legal advice. Construction contracts are legally binding documents, and the specific terms in your agreement may impact your financial obligations, rights, and risk. If you’re unsure about any part of the contract, or are managing a high-value or complex project, it’s strongly recommended that you consult with a qualified attorney familiar with construction law in your state.
Introduction
Even if you’ve built a good rapport with your contractor, it’s still important to carefully review the contract before signing. This agreement sets the terms for how your project will proceed, how changes will be handled, and what happens if something goes wrong.
You don’t need a legal background to review a contract effectively. This guide outlines what to look for, what’s typically included, and where you may want to clarify, revise, or add before moving forward.
How to Use the Contract Review Guide Template
We’ve created a downloadable Contract Review Guide you can use to walk through your agreement step-by-step.
📄 Download the Contract Review Guide Spreadsheet
This spreadsheet is designed to help you:
- Stay organized as you review the contract
- Track whether key clauses are included, clear, or missing
- Take notes and questions to follow up with your contractor or legal advisor
Instructions for Use:
- Open the spreadsheet and save a copy so you can edit it.
- Each row lists a specific clause or section to check (e.g., scope of work, payment terms, insurance).
- Use the columns to:
- Mark whether the clause is present, clear, or unclear
- Note whether it matches what was discussed or proposed
- Write down questions or edits to ask the contractor about
- Once complete, use the notes column to guide your conversation before signing.
This template is most helpful when used before signing the agreement, but it can also be used if you’re comparing contracts from multiple contractors.
What to Do After You’ve Reviewed the Contract
Once you’ve worked through the contract and used the guide or template to take notes, the next step is to follow up. A thorough review is meant to give you clarity, not to make the contract perfect. Most agreements will require a little back-and-forth before they’re ready to sign.
Talk to Your Contractor
- Go over any sections you flagged as unclear, missing, or needing more detail.
- Ask the contractor to explain anything you don’t understand. Most will be happy to walk you through it.
- If a clause doesn’t match what was discussed, request it be updated in writing.
Request Edits or Additions
- It’s okay to request changes, especially if something seems vague or incomplete.
- Some contractors may have limitations on what they can change in their templates, but many are flexible and willing to clarify scope, payment schedules, or roles.
Get Legal Advice If You Need It
- If something seems one-sided or confusing and it’s a high-value or complex project, it’s worth asking a construction attorney to review it.
- They can often review a residential contract for a flat fee and spot risks you might miss.
You Don’t Need a “Perfect” Contract
Most construction contracts, especially for smaller jobs, won’t check every single box listed in the guide. That’s okay. The goal is to understand:
- What is included and what isn’t
- How changes will be handled
- What’s expected from both parties
A simple kitchen or bath remodel might use a 2–3 page agreement that still covers the basics. A custom home or commercial tenant improvement project might require a more comprehensive document with detailed milestones, payment terms, and legal language.
What matters most is that you:
- Understand the contract you’re signing
- Feel comfortable with the scope, terms, and payment structure
- Have a clear way to handle questions or problems if they arise
What’s Next: Construction Insurance Basics
Once your contract is in place, the next step is confirming the right insurance coverage. Both you and your contractor need to be properly covered before work begins.
Continue to Construction Insurance Basics to learn the basics of general liability, builder’s risk, and how to protect your property throughout the project.