A scope of work is not enough.
Karalynn breaks down the contract clauses residential contractors need to protect themselves from difficult clients, canceled jobs, unpaid punch lists, and extra work, so they can control the project, document changes, and get paid through the finish line.
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Key Takeaways
1. Trust your instincts before accepting a residential job because a client who feels like a bad fit at the beginning can create a costly dispute later.
2. An escape clause gives a contractor the contractual right to end an unworkable client relationship with notice, instead of walking away and risking a breach of contract claim.
3. A cancellation clause tells homeowners that the agreement is binding and establishes the amount owed if they cancel, avoiding a difficult fight over proving lost profit.
4. A written punch out process limits final corrections to one documented list, protects the final payment, and separates later warranty work from the closeout process.
5. Every change that adds cost or time must be documented and signed before the work begins, because verbal approvals and assumptions about extra time leave contractors exposed to nonpayment and missed deadlines.
