What should be in my contract before I sign?

Who the contractor is

The contract should name the contractor and give their business address and their license or registration number. That number is your key to a two-minute check on your state's licensing website to confirm the license is real, active, and matches the person in front of you. No license number on the page is a reason to stop.

What work, what materials, what it costs

A solid contract says plainly what work will be done, what materials will be used, when it will start and finish, and the total price. This is the part that protects you most. Vague scope is where disputes are born, so if the work is described in one fuzzy line, ask for it in detail before you sign.

A payment schedule tied to the work

The contract should lay out each payment and what work or materials that payment covers, so the money tracks real progress and never runs ahead of it. Keep the down payment small, and hold the final payment until the job is truly done. Some states set a legal limit on the down payment, so it is worth knowing your state's rule.

Change orders in writing

If the price or the work changes mid-job, that change should be put in writing before it happens. A written change order protects you from surprise charges you never agreed to. "We ran into something, it will just be a bit more" is not a change order until it is on paper and you have signed it.

Your right to cancel

Under a federal FTC rule, if you sign a contract for more than $25 at your home, you generally have three business days to cancel it in writing, no penalty. Saturdays count toward the three days, Sundays and federal holidays do not. Some states add their own cancellation rights on top. If a contractor pressures you to skip this or sign on the spot, that pressure is the red flag, not the paperwork.

In California

California puts several of these in law. For a job over $500 the contract must be written and titled "Home Improvement Contract" in bold, and must show the contractor's name, address, and license number. The down payment cannot be more than $1,000 or 10 percent of the price, whichever is less. The contract must include a payment schedule that states each payment and what it covers, must put change orders in writing, must carry a notice telling you how to reach the Contractors State License Board, and must spell out your three-day right to cancel.

This is general information, not legal advice. Confirm the current rules and your specific situation with your state's licensing board or a professional before you sign.