The documents a contractor should provide you fall into four waves: proof of licensing and insurance before you sign, a detailed written contract and approved permits before work starts, change orders, invoices, and lien waivers during construction, and a closeout package of final lien waivers, warranties, as-built drawings, and inspection approvals when the job wraps. Collecting the right paper at each stage is what separates a smooth renovation from one that ends in a lien on your house or a warranty you can’t enforce.
Before You Sign: License and Insurance Proof
Ask for a copy of the contractor’s current license or registration before you commit to anything. Most states require general contractors to hold a license issued by a state licensing board, and you can verify the number directly on the board’s website. Check that the license is active, covers the type of work you need, and hasn’t been suspended or subjected to disciplinary action. A contractor who can’t produce a license number, or who asks you not to verify it, is telling you something.
Insurance documentation matters just as much. Ask for a Certificate of Insurance showing two coverages at minimum: general liability, which pays for property damage or injuries to third parties during the project, and workers’ compensation, which covers the contractor’s employees if they get hurt on your property. Without workers’ comp, an injured worker’s medical bills could become your problem.
A few details on the certificate are worth checking closely. Confirm the policy dates haven’t lapsed, that coverage limits are adequate for your project size, and that the named insured matches the contractor’s legal business name. On larger projects, ask to be listed as an additional insured on the contractor’s general liability policy. That endorsement gives you direct coverage under their policy if someone files a claim related to the work. The certificate should come from the contractor’s insurance agent or broker, not from the contractor directly, since certificates produced by the contractor are easier to falsify.
References and a portfolio of past work round out the pre-hire documents. Call two or three recent clients and ask whether the project finished on time, whether there were surprise costs, and how the contractor handled problems.
The Written Contract
The contract is the single most important document in the project, and vague contracts are where most disputes originate. If the scope of work says “remodel kitchen,” you and the contractor probably have very different pictures in your heads. A good scope reads like a checklist: demolish existing cabinets and countertops, install 30 linear feet of maple shaker cabinets (manufacturer and model number specified), install quartz countertops in a named color, relocate one electrical outlet. It should also state what’s excluded, because assumptions about what’s obviously included are the raw material of arguments.
Payment Schedule and Retainage
The payment terms should spell out the total price, the amount due at each milestone, and what conditions trigger each payment. Tying payments to completed work rather than calendar dates protects you. A typical structure breaks payments into stages: a deposit at signing, payments after demolition, rough-in, and finish work, then a final payment after you’ve signed off on the completed project.
For larger projects, the contract should include a retainage clause. Retainage means you withhold a percentage of each payment, typically 5% to 10%, until the entire project is finished and all punch list items are resolved. The holdback gives the contractor a financial incentive to come back and fix that crooked cabinet door instead of disappearing to the next job. Specify the retainage percentage and the conditions for releasing it.
Change Order, Dispute, and Warranty Clauses
Change order provisions establish how deviations from the original scope get handled. Require that all changes to the work, price, or schedule be documented in writing and signed by both parties before the changed work begins. Verbal agreements to “just add that while you’re here” are how $15,000 kitchens become $25,000 kitchens with no paper trail.
A dispute resolution clause sets the rules for when things go sideways. Many construction contracts include a stepped process: informal negotiation first, then mediation with a neutral third party, and finally binding arbitration or litigation if mediation fails. Arbitration is faster and cheaper than court but produces a final decision you generally can’t appeal, so understand the tradeoff before agreeing to it.
Warranty terms belong in the contract, not in a handshake. The contract should specify a workmanship warranty covering the contractor’s labor (one to two years is common) and confirm that manufacturer warranties on installed products will be transferred to you. Get the warranty start date, duration, and what’s covered in writing. A warranty that doesn’t define “defective workmanship” isn’t really a warranty.
Permits and Notice of Commencement
Any work that changes your home’s structure, electrical, plumbing, or mechanical systems almost certainly requires a building permit. A reputable contractor includes permit costs in their bid and handles the application. Be wary of a contractor who asks you to pull the permit yourself. When the contractor pulls the permit, they take legal responsibility for code compliance and for passing inspections. When you pull it, that responsibility shifts to you, even though you’re not the one doing the work.
Ask to see copies of the approved permit before work starts, and make sure the permit is posted visibly at the job site as most jurisdictions require. The permit application and approved plans become part of your project documentation. If work proceeds without a permit, you could face fines, be forced to tear out completed work, or run into serious problems when you try to sell or file an insurance claim.
In many states, the property owner or general contractor also files a notice of commencement at the start of a project. This recorded document formally establishes when construction began and can shorten the window during which subcontractors and suppliers may file liens against your property. If your state requires one, make sure it gets filed and keep a copy.
Paperwork While the Job Is Running
Signed Change Orders
Once work is underway, change orders are the formal mechanism for modifying the original agreement. Every change order should describe exactly what’s being changed, the cost impact (additions and credits), the effect on the project timeline, and signatures from both parties. Don’t let work on a change proceed until you have the signed document in hand. A stack of unsigned change orders at the end of a project is a billing dispute you’ll struggle to win.
Itemized Invoices
The contractor should provide itemized invoices at each payment milestone, breaking down labor costs, material costs, and any markups. Supporting documentation like material receipts and delivery confirmations lets you verify that charges match what was actually delivered and installed. If you’re withholding retainage, each invoice should show the retainage amount deducted and the running total being held.
Lien Waivers With Every Payment
Lien waivers protect you from paying twice for the same work. The risk: you pay your general contractor, but the contractor doesn’t pay a subcontractor or material supplier. That unpaid party can file a mechanics lien against your property, and you could end up paying again to clear it. Lien waivers prevent this by confirming everyone in the payment chain has been paid for work completed up to a certain point.
Two types matter. A conditional lien waiver says “I waive my lien rights once this check actually clears.” An unconditional lien waiver says “I waive my lien rights, period, because I’ve been paid.” The smart sequence: collect conditional waivers from the contractor, subcontractors, and material suppliers before you release each progress payment, then collect unconditional waivers confirming the previous payment cleared before you release the next one. You’re legally entitled to withhold payment until you receive these waivers, and you should.
Daily Logs and Progress Reports
On larger or longer projects, ask your contractor to maintain daily logs or weekly progress reports. These don’t need to be fancy. A useful log records the date, weather conditions, which workers and subcontractors were on site, work completed, materials delivered, and any delays or issues. Photos help enormously. The log creates a timeline you can reference if disputes arise about when work happened or why the schedule slipped.
Bonds on Larger Projects
For large projects, particularly commercial or public work, you may want the contractor to provide surety bonds. A performance bond guarantees the contractor will complete the project according to contract terms. If the contractor defaults, the surety company steps in to finance completion or hire a replacement. A payment bond guarantees that subcontractors and suppliers will be paid, which protects you from mechanics liens even if the contractor mismanages funds.
Federal law requires both performance and payment bonds on government construction contracts exceeding $100,000.1Office of the Law Revision Counsel. United States Code Title 40 – 3131 On private residential projects, bonds are less common because the premium (typically 1% to 3% of the contract price) may not be justified for smaller jobs. On a large addition, custom build, or any project where you’re paying six figures, a payment bond in particular is worth the cost. It’s cheaper than defending against a mechanics lien.
The Closeout Package
The Punch List
As the project nears completion, walk the entire site with the contractor and create a punch list: a written inventory of every incomplete item, defect, and detail that doesn’t meet the contract specifications. Each item should note its location, a description of the problem, and who is responsible for fixing it. The contractor then works through the list, and you verify each correction. Final payment and retainage release should be tied to completion of every punch list item. Don’t let the excitement of a nearly finished project pressure you into signing off with items still outstanding.
Final Lien Waivers
At project close, collect unconditional lien waivers from the general contractor, every subcontractor, and every material supplier confirming they’ve received final payment and are waiving all lien rights against your property. These final waivers are your proof that no one can come back later and claim they weren’t paid. Don’t release the final payment or retainage until you have every one of these in hand.
Written Warranties
The contractor should hand over written warranties covering both workmanship and materials. The workmanship warranty, typically one to two years, obligates the contractor to repair defects in their own labor at no cost to you. Material and product warranties come from the manufacturers and often run much longer, sometimes 10 to 25 years on items like roofing or windows. Make sure the contractor provides the original manufacturer warranty documents and that any registration requirements have been completed so the warranties are active in your name.
As-Built Drawings and Manuals
For projects involving structural changes, new systems, or significant remodeling, ask for as-built drawings. These are updated versions of the original plans showing what was actually built, including any changes made during construction. They’re invaluable years later when you need to locate a water line behind a wall or explain the electrical layout to a future contractor. For projects that include new mechanical, plumbing, or HVAC systems, the contractor should also hand over operation and maintenance manuals for all installed equipment.
Final Inspection Approvals and Certificates
If the project required a building permit, it requires a final inspection by the local building department. The contractor should schedule the inspection and provide you with the final inspection approval or certificate of completion once the work passes. For new construction or projects that change a building’s use, you may also need a certificate of occupancy before you can legally occupy or use the space. These certificates confirm the work complies with building codes. If you ever sell the property, a buyer’s inspector or title company will likely ask for them.
Tax Paperwork if You’re Hiring as a Business
Homeowners hiring a contractor for personal projects like a kitchen remodel or roof replacement generally do not need to file a 1099-NEC, because the payment isn’t made in the course of a trade or business.2IRS. Instructions for Forms 1099-MISC and 1099-NEC (04/2025) If you’re hiring a contractor in the course of a trade or business, you may need to collect a completed IRS Form W-9 before issuing any payment. The W-9 provides the contractor’s taxpayer identification number, which you need to file Form 1099-NEC reporting what you paid them.3IRS. Form W-9 (Rev. March 2024) For tax years beginning after 2025, the reporting threshold for Form 1099-NEC increased from $600 to $2,000.4IRS. 2026 Publication 1099
If you’re a landlord paying a contractor to work on a rental property, that crosses into business territory and the W-9 and 1099-NEC rules apply. Collect the W-9 before you write the first check, not in January when you’re scrambling to file.