You’ve finally gotten up the courage, the financing and time to remodel. You have a great contractor, you’ve gone over your plans and you’re anxious to get started. But don’t sign the contract before you thoroughly scrutinize it – and get all your questions answered to your satisfaction, or you could face big issues down the road.

At a minimum, Angie's List says your home remodeling contract should include:

1. The contractor’s name, address, and phone numbers where he/she can be reached.
2. Proof of insurance and current licensure number if licensure is required for your project.
3. The contractor’s obligation and agreement to obtain all necessary permits.
4. A complete description of the work to be done and the type of materials to be used. This should include blueprints, floor plans, sketches – anything that shows what the contractor will do and where.
5. Price for the total job and any down-payment required. (down-payments are normally $1000 or 10 percent of the total cost, which ever is smaller.)
6. An estimated start and a definition of what constitutes substantial commencement of work.
7. An estimated completion date and a definition of what constitutes completion of work.
8. The payment schedule for the contractor, subcontractors and suppliers. (Never pay full cost upfront and make payments correspond with completion work, holding back at least 10 percent until the job is completed to your satisfaction.)An outline of how to deal with change orders, including any payment requirements that would be in different from the main project payment schedule.
9. A Notice to Owner - This notice has information regarding the state lien laws, and the rights and responsibilities of the property owner.
10. Dated signatures from both you and your contractor.

Extras you might want:

1. A guarantee clause, usually for one or more years. This clause will force the contractor to repair his own defective work after the completion of the project.
2. A “broom clause” makes the contractor responsible for all clean-up work, including spills and stains.