Construction Contract Template (US)

Updated on August 3, 2026

A written construction contract sets out the scope of work, price, payment schedule, and timeline for a build or renovation — and in a growing number of states, a written contract above a certain value is a legal requirement, not just good practice. Contractor licensing and home-improvement contract rules vary sharply by state, so this page covers the parts that are broadly consistent, with a dedicated California version for that state's detailed, heavily-regulated requirements.

The contract below is the form: type straight into the highlighted blanks, then both parties sign on the signature lines. Download a clean Word or PDF file with no sign-up and no watermark.

0 of 14 blanks filled

Tap any highlighted blank in the document below and type straight into it.Free — no sign-up, no watermark

Construction Contract

This Construction Contract is made on between of , license number (the "Contractor"), and of (the "Owner").

1. Project

Project address:
Description of work:
Start date:
Estimated completion date:

2. Contract Price and Payment

Contract price:: $
Payment schedule:

3. Change Orders

Any change to the scope of work, price, or timeline must be documented in a written change order signed by both parties before the change is carried out.

4. Mechanics Lien Warning

The Owner is advised that, under the law of , unpaid subcontractors, laborers, or material suppliers may have the right to record a mechanics lien against the property if they are not paid, even if the Owner has paid the Contractor in full. The Owner should request lien releases or waivers as payments are made.

5. Warranty

The Contractor warrants the work against defects in materials and workmanship for from the completion date.

6. General

This Contract is governed by the law of and represents the complete agreement between the parties regarding the project described above.

The Contractor

Date:

The Owner

Date:

Mechanics liens: the risk that exists in every state

Every state has some form of mechanics lien (also called a construction lien) law: if a subcontractor or supplier isn't paid, they can place a lien on the property itself — even if the owner already paid the general contractor in full. This is one of the most common sources of dispute in construction, and it's exactly why some states (California among them) legally require a written warning about it in every home-improvement contract. Owners can reduce this risk by requesting lien waivers as payments are made and, on larger jobs, considering joint checks to subcontractors.

Check your state's licensing and contract rules before you start

Most states require contractors to hold a state license above a certain project value, and several — California most prominently — mandate specific mandatory content, a minimum type size, a capped down payment, and a buyer's right to cancel for home-improvement contracts specifically. These rules exist to protect homeowners from unlicensed or predatory contractors and change fairly often. If the project is in California, use the California version of this template instead, which reflects the state's current requirements in detail.

The clauses, explained

Parties and project: Identifies the contractor and owner, the project address, and a description of the work.
Contract price and payment schedule: The total price and how it's broken into progress payments tied to specific stages of work.
Start and completion dates: The expected timeline for the project.
Change orders: How changes to the scope of work are documented and priced once the contract is signed.
Mechanics lien warning: Explains that unpaid subcontractors or suppliers can lien the property even after the owner has paid the contractor in full.
Warranty: What workmanship or materials warranty the contractor provides, and for how long.

Requirements checklist

Contractor licensing and home-improvement contract rules are set at the state level — check your state's contractor licensing board for the current requirement.

Mechanics lien rights exist in every state
Unpaid subcontractors and suppliers can lien the property regardless of whether the owner paid the general contractor — this is worth disclosing in every contract, not only where it's legally mandated.
California has detailed, mandatory home-improvement contract rules
Written contract required above $500, a capped down payment, specific mandatory contents, and a buyer's right to cancel — see the California version of this template for the current detail.
California construction contract template

How to use this template

Fill in the parties and project. Type the contractor's and owner's details, the project address, and a description of the work into the highlighted blanks.
Set the price and payment schedule. Fill in the contract price and break it into progress payments tied to project milestones.
Add start and completion dates. Enter the expected timeline for the project.
Sign, download and check your state's rules. Both parties sign on the signature lines, then download the contract as a Word or PDF file and confirm your state's contractor licensing and home-improvement contract requirements before finalizing — use the California version if the project is in California.

Frequently asked questions

Do I legally need a written construction contract?

It depends on your state and the size of the job — several states require a written contract above a certain value for home-improvement work specifically. Even where it's not legally required, a written contract is strongly recommended for any significant project.

What is a mechanics lien and why does it matter?

It's a legal claim a subcontractor or supplier can place on the property if they aren't paid — even if the owner already paid the general contractor in full. It exists in every state and is one of the most common sources of construction disputes.

Do I need to check the contractor's license?

Yes — most states require contractors to be licensed above a certain project value. Check your state's contractor licensing board to confirm the contractor's license is current before signing.

Is California's version of this contract different?

Significantly — California's Business and Professions Code sets mandatory contents, a capped down payment, a required mechanics lien warning, and a buyer's right to cancel for home-improvement contracts. Use the California-specific version of this template for that state.

How should I handle changes to the scope of work?

Use a written change order for any change to the work, price, or timeline after the contract is signed, and have both parties sign it — this avoids disputes over what was actually agreed.

Related templates

Disclaimer

This template and guide are provided for general information only and do not constitute legal advice. Contractor licensing and home-improvement contract requirements vary by state and change over time. Confirm current requirements with your state's contractor licensing board before relying on this document.