No Cancellation Period
Many states require a 3-day right of rescission for home improvement contracts, meaning you can cancel within 3 days without penalty. If the contract does not mention this or tries to waive it, that may violate your state consumer protection laws. A legitimate contractor includes this because they know the law.
Vague Scope of Work
A contract that says 'install new siding' without specifying the brand, model, color, quantity, and where exactly it will be installed is dangerously vague. You could end up with a different product than you discussed, or the contractor could argue that certain areas were not included.
Payment Weighted Heavily Upfront
A contract requiring half or more before work begins is risky. Standard practice is one-third at signing, one-third at midpoint, and one-third at completion. The final payment should only be due after you have inspected the work and are satisfied.
No Warranty Language
The contract should clearly state the labor warranty period, what it covers, and how to make a claim. If there is no warranty section, or if it says 'as is' after completion, you have no protection against installation defects that show up months or years later.
Waiver of Liability for Damage
Some contracts include broad language waiving the contractor's liability for damage to your property during the project. This is unacceptable. The contractor should carry general liability insurance and their contract should reflect that they are responsible for their work and their crew.
