Contracts built for General Contractors

Common questions from general contractors

What is a change order and when do I need one?

A change order is a written amendment to your original contract that documents any changes to the scope, timeline, or price. You need one whenever the client requests work outside the original specification. Never do out-of-scope work without a signed change order — verbal agreements are nearly impossible to enforce, and 'scope creep' is the leading cause of contractor disputes.

How should I structure payment for construction projects?

A common structure: 10–20% deposit at signing, progress payments tied to completion milestones (rough framing, rough mechanicals, drywall, etc.), and a final retainage (typically 5–10%) held until punch-list completion and owner sign-off. Never front-load payments or allow a large final payment — it creates financial risk and misaligned incentives.

What insurance does my contract need to reference?

At minimum: general liability insurance (covering property damage and bodily injury), workers' compensation if you have employees, and any state-required contractor bonding. Your contract should require that you maintain these coverages and name the client as an additional insured on your GL policy. Require the same from all your subcontractors.

What happens if a client refuses to pay the final balance?

A mechanic's lien is your most powerful tool. Most jurisdictions allow contractors to file a lien against the property for unpaid work — which clouds the title and prevents the owner from selling or refinancing until the lien is resolved. Your contract should include a lien rights clause and require lien waivers from your subcontractors as you pay them.