The Contract Is Your Only Protection
Once the work starts and money changes hands, the contract is the only document that defines what was agreed. A weak contract leaves you with no leverage when disputes arise — and they always do.
Sign 1: Itemized Scope, Not a Summary
A strong contract specifies brands, models, quantities, and finishes. Vague scope = unlimited change orders. Specific scope = accountability.
Sign 2: Milestone-Based Payment Schedule
Each payment ties to a verifiable milestone: 10% at signing, 25% at rough framing, 25% at rough-in inspections, 25% at finish installation, 15% at final punch list. You never pay for work not yet completed.
Sign 3: Defined Change Order Process
All changes must be in writing with cost and schedule impact. No work begins until signed. Verbal conversations are not approved change orders.
Sign 4: Start and Completion Dates With Consequences
Include a liquidated damages clause — a daily penalty for delays beyond the completion date, with carve-outs for weather and permits.
Sign 5: Dispute Resolution Process
Mediation first, then binding arbitration. Keeps disputes out of expensive litigation.
Red Flags to Walk Away From
- No specific material brands — just open-ended allowances
- No mention of who pulls permits
- No lien waiver requirement
- A single large upfront payment over 30%
BuildLedger lets you set up your milestone payment schedule from day one — every payment tied to a completed phase and documented in the ledger. Start free