If you treat contracts like a formality, don’t be shocked when you get:
- change orders refused
- payments delayed “because they’re unhappy.”
- scope creep that eats your margin
- a job you can’t stop without “breach” threats
Here’s the truth: contracts are leverage. They’re tools to prevent disputes, not “deal with them later.”
✅ The Do’s of Contract Negotiation (profit-protecting):
- Pre-negotiate scope + exclusions (what’s NOT included)
- Put a clear change order process in writing (approved BEFORE work)
- Add payment triggers tied to milestones (cash flow + clarity)
- Include right-to-stop-work for non-payment
- Add late fees + interest + collection costs (so stalling hurts them)
-Protect yourself with clauses like: photos/marketing use, warranties, site readiness
🚫The Don’ts (that get contractors crushed):
- Don’t rely on verbal approvals
-Don’t use vague language (“as needed”, “to be decided”)
- Don’t leave a big balance to the end “to build trust”
-Don’t blindly sign THEIR contract (especially “paid when paid”)
One contractor lost $12K on a $65K job because “what wasn’t included” wasn’t written down.
Quick Win for your next proposal:
➡️ Add a “What’s Included / What’s Not Included” section
➡️ Require written change order approval by email BEFORE work starts
➡️ Add a 3% late payment fee after 15 days