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Putting the Contract in Contractor: What Needs to Be Included?

Posted November 29, 2022 by EnerBank USA

Woman signing contract with contractor

As your business grows and you start to take on bigger jobs, ensuring that your business, your employees, and your customers have the proper levels of protection becomes even more vital. Check out these items that should be a part of all your contracts.

Name of Contractor and Contact Info – This includes the contractor license number, name of the company, email address, and phone number.

Name of Homeowner and Contact Info – Homeowner’s phone number, email, and the address of where the work is taking place. Ensure that the person listed here actually owns the property where the job is taking place.

Property Description – In legal terms, describe the property using the description that you can find on the deed of the home.

Required Permits, Insurance, and Warranties – Depending on the work being done and where it’s taking place, this may vary. Also make note of which warranties the contractor/equipment offers and what they cover.

Cost of Project – A line-item description of the costs lays out what the homeowner will owe for the project. It can also list how the homeowner will be paying for the project (e.g., financing).

Description of Work – Include what the project entails, list of materials, time frame estimate, and completion date. This should also list who is responsible for the disposal of materials, which is usually the contractor.

Stop Clause, If Necessary – If the project needs to stop, this details how either side can end the terms of the contract. Check your local laws to ensure you’re following the legal guidelines. You should also list out what happens in the event of an unexpected event during work, such as an earthquake.

This post is a helpful guide and not legal advice. If you need further assistance in drafting a contract, please contact a business attorney.


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