Identify the contracting business

Confirm the legal business name, address, and person signing the agreement. Where licensing is required, check the relevant official register and whether the licence covers the work. Ask for appropriate insurance information and verify it as needed. A trading name or a good review is not a substitute for knowing which business has promised to perform the job.

Make the scope observable

Describe rooms, measurements, materials, finishes, removal work, and cleanup. Identify who obtains permits and arranges inspections. Product allowances should explain what is included and how a different selection affects cost. California’s contractor regulator publishes a useful contract checklist, but its specific legal requirements apply in California. Check your own jurisdiction’s rules before treating any sample as sufficient.

Connect payments to progress

Understand the deposit, later instalments, and what each payment represents. Ask how completed work and materials will be verified. Deposit limits, lien rules, and payment protections vary by state. Avoid importing a percentage from another jurisdiction into your agreement. Keep receipts and a running account of approved charges so there is a shared record of the project’s finances.

Agree how changes are approved

When the work changes, record the revised scope, price, and effect on timing. Identify who can approve that change on each side. A text message about a new feature may not capture every cost or satisfy local requirements. Keep change documents with the original agreement, and resolve unclear pricing before authorising additional work where practicable.

Define what completion includes

Discuss final inspection, outstanding defects, warranty documents, manuals, and the return of keys or access devices. Record concerns promptly with dates and photographs, without obstructing legitimate work. If a dispute develops, preserve communications and seek advice before taking steps with legal consequences, such as terminating the contract or withholding payment. The right response depends on the agreement and applicable law.

Keep this in mind

Your preparation list.

  • Verify the business and required licence.
  • Specify materials, permits, and cleanup duties.
  • Understand payment stages and local protections.
  • Keep approved changes and completion records.

Reference points: California Contractors State License Board, Learn About Home Improvement Contracts and Terms of Agreement consumer guide. California rules are not presented as nationwide requirements. Reviewed September 30, 2026.

General information for U.S. readers. Local law and your circumstances determine the appropriate next step.