Summary. Fifteen documents, front-loaded toward the ones that prevent problems rather than fix them.
How to use these
The first six documents here cost you an afternoon and prevent the last nine from ever being needed. That ratio is the whole argument for reading this before signing rather than after.
Three rules:
Everything in writing, dated, kept. Including the texts. Especially the texts.
Photograph before it is covered. Ten minutes before drywall is worth more than any expert report afterward.
Never pay without a waiver. This is the habit that prevents paying twice, and it is the one homeowners skip.
Template 1 — Contractor screening worksheet
CONTRACTOR SCREENING — [Company name]
Check Result Date Notes License number Verified on state board site? Y / N Print the page Status current? Y / N Classification covers this scope? Y / N Name matches contract entity? Y / N Disciplinary history General liability insurer Verified BY CALLING the agent? Y / N Not from the certificate Policy limits / expiration Workers' compensation Y / N Bond — surety, amount, verified Secretary of state — good standing Y / N Entity formation date A brand-new entity is a question County court records — judgments, liens, suits AG consumer complaints Reference 1 (recent) Reference 2 (recent) Reference 3 — project 2+ YEARS OLD The one that matters Current job site visited? Y / N Organized? Protected? Clean? Physical business address
Questions for the two-year reference: Did the work hold up? Did anything fail? Did they honor the warranty? Did they come back when called? Would you hire them again? Was the final price close to the contract price, and if not, why?
Template 2 — Bid comparison
BID COMPARISON — [Project], scope dated [date]
Bidder A Bidder B Bidder C Base price $ $ $ What's EXCLUDED — Permits in / out in / out in / out — Disposal / dumpster — Unforeseen conditions — Code-required upgrades — Patch & paint adjacent — Plumbing / HVAC relocation Allowances — [Cabinets] $ $ $ — [Counters] $ $ $ — [Tile] $/sf $/sf $/sf — What does it actually buy? Deposit requested $ / % Payment schedule milestone / date Retainage offered % Start date / duration Own crew or subs Warranty term Arbitration clause? Y / N License verified Y / N Insurance verified by phone Y / N Adjusted comparable total $ $ $
The adjusted total is the only meaningful comparison. Add back the excluded items and the realistic allowance overages to each bid, and the ranking frequently reverses.
Template 3 — Contract clause language
Insert these into any contract that does not already contain them. Each addresses a specific and common failure.
Scope
The work is described in the Scope of Work attached as Exhibit A, which identifies materials by manufacturer and model. Items not listed in Exhibit A are excluded. Contractor shall notify Owner in writing of any condition Contractor contends is outside the Scope before performing work related to it.
Allowances
Allowances are set out in Exhibit B. Contractor represents that each allowance is sufficient to purchase materials of the quality and character described. Any amount by which actual cost exceeds an allowance shall be documented by supplier invoice and approved in a signed change order before purchase.
Payments
Payments shall be made upon completion of the milestones set out in Exhibit C, verified by Owner. No payment shall exceed the value of work actually completed and materials actually delivered to the site.
Retainage
Owner shall retain ten percent (10%) of each payment. Retainage shall be released within ten (10) days after (i) completion of all punch list items identified at the walkthrough, (ii) final inspection approval by the building department, and (iii) delivery of final unconditional lien waivers from Contractor and from each subcontractor and supplier.
Change orders
No change in the Scope, price, or schedule shall be effective unless set out in a written change order stating the change, the price adjustment, and the schedule adjustment, signed by both parties before the changed work is performed. Contractor shall not be entitled to payment for work performed without a signed change order.
Lien waivers
Contractor shall deliver, with each request for payment, a conditional waiver and release upon progress payment from Contractor and from each subcontractor and supplier who has served a preliminary notice or is otherwise known to have furnished labor or materials. Payment shall be made within seven (7) days of receipt. Contractor shall indemnify and defend Owner against any lien asserted by any person claiming through Contractor.
Permits
Contractor shall obtain all required permits in Contractor's name and shall schedule and obtain all required inspections. Contractor shall provide Owner with copies of all permits and inspection approvals.
Insurance
Contractor shall maintain general liability insurance of not less than $______ and workers' compensation as required by law, and shall provide certificates evidencing such coverage directly from the insurer or agent before commencing work.
Schedule
Work shall commence on or before [date] and shall be substantially complete on or before [date]. Contractor shall notify Owner in writing within three (3) days of any circumstance Contractor contends will delay completion, stating the cause and the anticipated revised date.
Cleanup and protection
Contractor shall protect areas of the residence outside the work area, shall contain dust, and shall leave the site in broom-clean condition at the end of each work day.
Dispute resolution — the negotiated version
Either party may bring a claim within the jurisdictional limit of small claims court in that forum. Any other dispute shall be [mediated before, and if unresolved,] resolved by arbitration in [county where the Property is located]. Contractor shall advance the arbitrator's compensation, subject to reallocation by the arbitrator in the final award.
Termination
Either party may terminate for material breach upon fourteen (14) days written notice specifying the breach, if the breach is not cured within that period. Upon termination, Owner shall pay for work completed to the date of termination, less amounts necessary to correct defective work and complete the Scope.
Template 4 — Change order form
CHANGE ORDER NO. ____ Project: [Address] · Contract dated: [ ] · Date: [ ]
1. Change requested by: [ ] Owner [ ] Contractor
2. Description of the change (specific — what is added, removed, or substituted):
3. Reason: [ ] Owner election [ ] Unforeseen condition [ ] Code requirement [ ] Design conflict [ ] Other: ____
4. Price adjustment:
Amount Labor $ Materials (invoices attached) $ Subcontractor $ Markup ___% $ Total this change order $ Original contract price $ Prior change orders (Nos. ___) $ Revised contract price $ 5. Schedule adjustment: ____ additional days. Revised substantial completion: [date].
6. Payment: This amount shall be [added to the next milestone payment / paid on completion of this change / paid as follows: ____].
7. This change order is effective only when signed by both parties, and only if signed before the changed work is performed.
Owner: __________ Date: ______ Contractor: __________ Date: ______
Template 5 — Notice of cancellation
Use where you signed at your home or anywhere that is not the contractor's permanent place of business. If the contractor never gave you the required notice and two cancellation forms, the cancellation period may never have begun.
NOTICE OF CANCELLATION
To: [Contractor name and address] From: [Your name and address] Date: [ ]
I hereby cancel the transaction dated [date of contract] for [brief description of the work] at [address].
[If applicable:] I note that I was not provided with the notice of my right to cancel or with two copies of a cancellation form as required, and that the cancellation period therefore did not begin to run.
Please return any payments made and any instrument executed by me within the time required by law, and remove any materials delivered to the property.
[Signature] · [Printed name] · [Date]
Sent by [certified mail no. ____ / hand delivery with receipt / email to ____] on [date]. Copy retained.
Send it before the deadline if there is one, by a method that proves the date, and keep a copy.
Template 6 — Lien waiver guide and forms
Which one, when
| Conditional | Unconditional | |
|---|---|---|
| Progress | Use when paying by check. Effective when the check clears. Covers work through a stated date. | Only where payment has already cleared. |
| Final | Use for the final check. Effective when it clears. Covers everything. | Only after final payment has cleared. |
Many states have a statutory form. Use it — a non-statutory form may be ineffective.
Conditional waiver on progress payment (generic form)
CONDITIONAL WAIVER AND RELEASE ON PROGRESS PAYMENT
Property: [address] · Owner: [name] · Undersigned: [name] · Through date: [ ]
Upon receipt by the undersigned of a check from [payer] in the sum of $______ payable to the undersigned, and when the check has been properly endorsed and has been paid by the bank on which it is drawn, this document becomes effective to release any mechanics lien, stop payment notice, or bond right the undersigned has on the above property through the through date stated above, to the extent of the payment.
This release does not cover any retention, items furnished after the through date, or contract rights for items furnished and not paid for.
[Signature] · [Title] · [Company] · [Date]
Final unconditional waiver (generic form)
UNCONDITIONAL WAIVER AND RELEASE ON FINAL PAYMENT
Property: [address] · Owner: [name] · Undersigned: [name]
The undersigned has been paid in full for all labor, services, equipment, and materials furnished to the above property and does hereby waive and release any mechanics lien, stop payment notice, or bond right the undersigned has on the property.
NOTICE: THIS DOCUMENT WAIVES RIGHTS UNCONDITIONALLY AND STATES THAT YOU HAVE BEEN PAID FOR GIVING UP THOSE RIGHTS. DO NOT SIGN UNTIL YOU HAVE BEEN PAID.
[Signature] · [Title] · [Company] · [Date]
Template 7 — Preliminary notice tracker
Every notice that arrives goes on this sheet. This is the complete list of who can lien your house.
| # | Date received | Company | Trade / material | Contact | Amount stated | Waiver obtained — payment 1 | 2 | 3 | Final |
|---|---|---|---|---|---|---|---|---|---|
| 1 | $ | ☐ | ☐ | ☐ | ☐ | ||||
| 2 | $ | ☐ | ☐ | ☐ | ☐ | ||||
| 3 | $ | ☐ | ☐ | ☐ | ☐ |
Also add anyone you see working on site who has not sent a notice.
Before every payment, check the boxes across this sheet. Do not pay until they are checked.
Template 8 — Payment and waiver log
| Payment | Date | Milestone verified | Amount | Method | Retainage held | GC waiver | Sub waivers | Photos taken |
|---|---|---|---|---|---|---|---|---|
| Deposit | $ | — | ☐ | ☐ | ☐ | |||
| 1 | $ | $ | ☐ | ☐ | ☐ | |||
| 2 | $ | $ | ☐ | ☐ | ☐ | |||
| Final | Punch list complete + final inspection | $ | Released | ☐ | ☐ | ☐ |
Never cash. Always a traceable method.
Template 9 — Punch list
PUNCH LIST WALKTHROUGH — [Address] Date: [ ] · Present: [Owner], [Contractor]
# Location Item Agreed correction Completion date Done Verified 1 Kitchen Cabinet door at sink misaligned Adjust hinges ☐ ☐ 2 Hall bath Grout missing at tub/tile joint Grout and seal ☐ ☐ 3 Exterior Downspout not connected to extension Connect ☐ ☐ Also outstanding:
- Final building inspection approval
- Final unconditional lien waivers — GC and all subs/suppliers
- Warranty documents
- Manuals and product information
- Leftover materials (paint, tile) delivered
- As-built information on concealed work
Retainage of $______ shall be released upon completion of all items above.
Owner: __________ Contractor: __________ Date: ______
Template 10 — Construction defect notice
Check your state's construction defect notice statute FIRST. Its content and timing requirements control, and failure to comply can bar the claim.
NOTICE OF CONSTRUCTION DEFECTS AND OPPORTUNITY TO INSPECT AND REPAIR
To: [Contractor], [address] From: [Owner], [property address] Date: [ ]
This notice is given pursuant to [state statute citation, if applicable] and under the contract dated [date].
The defects.
# Location Description of the defect First observed Photo ref. 1 Second-floor bath Water is entering the ceiling below at the shower pan location. Moisture readings of 28% recorded at [locations] on [date]. The pan liner appears not to be sloped to the weep holes. [date] IMG_0412–0419 2 Supporting documentation enclosed: [independent inspection report of (inspector), dated (date); photographs; moisture readings; repair estimate].
Opportunity to inspect. I am offering you the opportunity to inspect the conditions described above. Please contact me at [phone] within [N — per the statute] days to arrange a mutually convenient time.
Opportunity to repair. If you propose a repair, please provide a written description of the proposed work, the products to be used, and the schedule, so that I can evaluate whether it addresses the condition.
Reservation. Nothing in this notice waives any claim or remedy, or extends any applicable limitations period.
[Signature] · [Date] Sent by [certified mail no. ____] on [date]. Copy retained.
Template 11 — Abandonment demand
DEMAND TO RESUME WORK — [Address]
Dear [Contractor],
Under our contract dated [date], you agreed to [scope] for $______, with substantial completion by [date].
No work has been performed at the property since [date] — [N] days ago. I have contacted you on [dates] by [method] and have received [no response / the following: ____].
Payments made to date total $______, itemized:
Date Amount Milestone claimed $ The current state of the work is documented in the enclosed photographs taken [date], and consists of: [describe specifically what is and is not complete].
Demand. I demand that you resume work by [date — ten days out] and complete the Scope. If work has not resumed by that date, I will treat the contract as abandoned, will engage others to complete the work, and will seek the reasonable cost of completion in excess of the unpaid contract balance, together with all other damages and remedies available.
I am also providing this notice to [the state licensing board / your surety].
[Signature] · [Date] Sent by [certified mail no. ____] and email on [date].
Template 12 — Licensing board complaint
COMPLAINT — [Contractor name], License No. [ ]
Complainant: [Name, address, phone, email] Respondent: [Company, owner name, license number, address] Property: [Address] Contract: dated [ ], amount $______. Copy enclosed.
The violations (check all that apply): [ ] Abandonment — no work since [date] [ ] Departure from plans/specifications without a signed change order [ ] Substandard workmanship [ ] Failure to obtain required permits [ ] Working outside license classification [ ] Failure to pay subcontractors/suppliers (liens recorded: [list]) [ ] Non-compliant contract — missing [license number / cancellation notice / total price / change order provision / lien notice] [ ] Excessive deposit — $______ on a $______ contract [ ] Misrepresentation [ ] Failure to be lead-safe certified on pre-1978 housing
Chronology:
Date Event Contract signed Deposit paid [Work stopped / defect discovered] Written notice sent Amount paid: $______ Value of work completed (per [source]): $______ Cost to complete/correct (two estimates enclosed): $______
Enclosures: contract · change orders · payment records · photographs · correspondence · inspection report · estimates · liens
I request: investigation · an order of restitution · [disciplinary action]. Please also advise whether this state maintains a recovery fund, its prerequisites, and its filing deadline.
[Signature] · [Date]
Template 13 — Bond claim
File early. Bonds are modest and shared among claimants in order of filing.
CLAIM AGAINST CONTRACTOR LICENSE BOND
To: [Surety company], [address] Bond No.: [ ] · Principal: [Contractor], License No. [ ]
Claimant: [Name, address, phone] Property: [Address]
The claim. On [date] I contracted with the Principal for [scope] at a price of $. I paid $. The Principal [abandoned the work on (date) / performed defective work described in the enclosed inspection report / failed to pay subcontractors, resulting in liens totaling $______].
Amount claimed: $______, calculated as [cost to complete/correct per enclosed estimates, less unpaid contract balance / amount of liens paid or payable].
Enclosures: contract · payment records · photographs · inspection report · two estimates · correspondence · licensing board complaint filed [date] · recorded liens
Please advise of any additional information required and of the deadline for filing.
[Signature] · [Date]
Template 14 — Demand letter
The document that resolves more of these disputes than litigation does. A few hundred dollars of inspection attached to two pages.
[Date] · Sent by certified mail and email
RE: [Address] — demand for resolution
Dear [Contractor],
The contract. Dated [date], for [scope], at $. I have paid $.
The problem. [Two or three sentences, factual.] The specific defects are set out in the notice I sent on [date] and in the enclosed report of [inspector], a [licensed/certified ____], dated [date], which concludes [one sentence].
What I have done. Written notice on [date]. Opportunity to inspect on [date]. [Your proposed repair of (describe) does not address the condition, for the reasons stated in the enclosed report.]
The amount.
Item Amount Support Repair of [defect] $ Estimate, [contractor], enclosed Repair of [defect] $ Estimate, [contractor], enclosed [Consequential damage] $ Invoice Total $ The legal basis. [The work breaches the implied warranty of workmanlike construction and the express warranty at section ___ of the contract. In addition, the contract omits [required terms], which under [state statute] renders it [unenforceable / a per se unfair and deceptive practice, exposing you to (multiplied) damages and attorney's fees].]
Resolution. I am willing to resolve this for $______ paid by [date], in full settlement. If I do not hear from you by then, I will [file suit / proceed with the licensing board complaint and bond claim already filed] and seek all available damages, including [multiplied damages and attorney's fees].
I would prefer to resolve it.
[Signature] · [Date] cc: [Surety] · [Licensing board] · [Contractor's liability insurer, if known]
Template 15 — Photograph log
| # | Date | Location | What it shows | Before covered? |
|---|---|---|---|---|
Photograph these before they are covered — this is the list:
- Framing, all walls
- Rough plumbing, including supply and drain slopes
- Rough electrical, including panel and home runs
- HVAC rough-in and duct connections
- Insulation and vapor barrier
- Shower pan liner and the flood test
- Waterproofing membranes
- Subfloor and any structural repair
- Roof deck after tear-off
- Flashing at every penetration and wall intersection
- Foundation and drainage work before backfill
- The permit card and every inspection sign-off
The short version
- Verify the license and call the insurer. Two hours.
- Three bids on one scope, compared on exclusions and allowances.
- Read the contract against your state's statute — non-compliance is your strongest card.
- Read the arbitration clause before signing, when you still have leverage.
- Milestone payments, modest deposit, 10% retainage.
- Signed change orders before the work.
- Keep every preliminary notice. It is the list of who can lien your house.
- Never pay without a waiver.
- Photograph before it is covered.
- Check the defect notice statute before doing anything about defective work.
- Licensing board and bond claim first — they're free and they move.
Related documents
- Home Improvement Contracts and Contractor Disputes
- Hiring a Contractor and Handling a Construction Dispute
- Home Improvement Contract and Contractor Dispute Checklist
- Neighbor Dispute Toolkit
- Insurance Claim and Bad Faith Checklist
- Self-Represented Litigant Toolkit
Educational only, not legal advice. Adapt every template to your state — lien waiver forms, defect notice content, and cancellation notices are frequently prescribed by statute, and a non-statutory form may be ineffective.
