A solid contract prevents 80% of contractor-client disputes. The other 20% — when they happen — you win because you have it in writing. Here's a free construction contract template with the 10 essential sections and how to use each.
10 sections every construction contract needs
1. Parties
Full legal names + business names of contractor and client. Include license number, address, phone, email.
2. Project description
Property address, scope of work referenced (usually attached as Exhibit A — your estimate).
3. Scope of work
Detailed list of work to be performed. Be specific. "Remodel bathroom" loses every dispute. "Demolish existing tile floor and walls, install new tile floor (60 sf), install new tile shower walls (90 sf), install vanity, paint walls and ceiling" wins.
4. Schedule
Start date, completion date (or duration in business days). Allowance for weather, material delays, change orders.
5. Price and payment schedule
Fixed price or cost-plus. Typical residential: 30% deposit, 40% progress, 30% on substantial completion. Include payment due dates and late fee policy (typically 1.5% per month).
6. Change orders
This is what saves you the most money. Any change to scope requires a written, signed change order before work proceeds. Otherwise client claims "you said it was included."
7. Materials and allowances
List materials specified. For items not selected yet, set an "allowance" — a dollar amount. If client picks something pricier, they pay the difference.
8. Warranty
Standard: 1-year workmanship warranty from substantial completion. Excludes damage from misuse, normal wear, or work by others.
9. Insurance
State your general liability and workers' comp coverage. Offer certificates upon request. This shifts client perception of risk.
10. Dispute resolution
Mandatory mediation before litigation. Specify state law that governs. This alone saves $5-15k in legal fees per dispute.
What ruins contracts
"As discussed" — clients forget. Write it.
Verbal change orders — they didn't happen if they're not in writing.
No completion criteria — what does "done" mean? List it: passes inspection, punch list complete, final cleanup done.
One signature page — clients claim later sections "weren't part of what they signed." Initial every page or sign electronically with timestamp.
Generate this contract automatically
ConstruMate generates a complete construction contract from your estimate. All 10 sections included. Client signs online — no notary, no mail. Try the calculator + proposal flow to see how.