A written contract is the backbone of a remodel. The Nevada State Contractors Board says to always insist on one, because it protects everyone and prevents confusion if anything goes wrong. This guide lists what the Board suggests a contract include, and what to check before you sign.
Key takeaways
- Get a written, dated contract signed by both sides.
- Check the license number, classification and monetary limit in the contract.
- Do not assume anything that is not written in it.
The Board’s basic list
The Board lists these items to look for in a contract:
- The contractor’s license number and classification.
- The contractor’s monetary limit.
- The exact amount due from you under the contract.
- The date work will begin and the number of days for completion.
- The work to be performed and the materials to be used.
- The approximate percentage of work to be subcontracted and a list of subcontractors.
- Signatures and dates from both parties.
Items the Board says may be advisable
- The name and address of any salesperson who solicited or negotiated the contract.
- A detailed payment schedule.
- Warranty terms.
- A provision requiring the contractor to obtain lien releases from all subcontractors and material suppliers.
Required disclosures
Some disclosures must come with the contract. For residential projects, the Board says your contractor may need to provide general contractor and Residential Recovery Fund disclosures. A general building contractor working for the owner of a single-family home must list subcontractors and certain suppliers, give notice of lien rights and provide an informational form about contractors and liens. Pool and spa contracts have their own detailed requirements.
A contract checklist
| Section | What to look for | Where it comes from |
|---|---|---|
| Parties | Licensed business name matching the license search | License search result |
| Scope | Your scope of work, attached or copied in | Your written scope |
| Price | Exact amount, allowances listed | The bid you accepted |
| Schedule | Start date and days to complete | Board’s contract list |
| Payments | Stages of work tied to each payment | Board’s advisable items |
| Permits | Who obtains which permits | City of Las Vegas guide |
| Changes | Written, signed change orders | Board guidance |
| Lien releases | Required with payments | Board’s advisable items |
Attach the scope and plans
The Board says the contract should have adequate plans and specifications or another adequate description of the work. The simplest method is to attach your written scope and any drawings and have both sides initial them. See How to Write a Scope of Work Before You Ask for Bids.
Say who pulls the permits
The City of Las Vegas guide advises making sure the contract clearly specifies who, you or the contractor, is responsible for obtaining permits and inspection approvals. The Board advises that the contractor obtain the permit before work starts and that you not pull it yourself.
Tip: Read the contract at home, not at the kitchen table with the salesperson waiting. The Board says not to let a contractor or salesperson rush you, and to consider an attorney if any provision is unclear.
Ask about a payment and performance bond
On larger jobs, the Board suggests you may want to request a payment and performance bond. It is separate from the license bond, guarantees completion and payment of subcontractors and suppliers, and costs extra. The Board’s informational form adds that the bond and a copy of the contract can be filed with the county recorder for more protection.
Before work begins
The Board suggests that before work starts you have a complete set of contract documents: plans showing exactly what will be built, specifications that go with them and a detailed contract with general conditions. For larger projects it suggests having a licensed architect or engineer prepare or review the plans, and an attorney prepare or review the contract. It also recommends that no work be allowed until all documents are complete to your satisfaction. Ask the contractor about inconveniences that may occur, such as utility shut-offs, and plan for them.
Warranty terms
Warranty terms are on the Board’s list of advisable items. Ask what the contractor’s warranty covers, for how long and how you make a claim. Keep manufacturer warranties for fixtures and equipment separately, and file both in your How to Set Up a Remodel Project Binder.
Changes after signing
The Board says all change orders should be written and signed by both you and the contractor, and that changes should be kept to a minimum because they add cost. See Change Orders: How to Handle Changes Mid-Project.
Common mistakes
Signing a one-page estimate as the contract is a frequent mistake. Others include a vague schedule, no mention of permits, and payment terms that front-load most of the price before much work is done.
Frequently asked questions
Is an email agreement enough?
A signed, dated written contract that includes the Board’s items is much stronger.
Should an attorney review it?
The Board suggests considering an attorney before you sign a construction contract, especially for larger jobs.
What if the contract is over the contractor’s monetary limit?
The Board says contracts above the limit are invalid. Check before signing.
Next, plan the payments: Deposits and Payment Schedules: Paying for a Remodel in Stages.