What to Ask a Contractor Before Signing a Construction Contract

Preconstruction Services — Signing a construction contract is a significant financial commitment — typically $75,000 to $500,000 for the renovation and new construction projects most Hudson Valley homeowners undertake. Most of the risk in that commitment can be substantially reduced by asking the right questions before you sign. The contractor's answers reveal whether they have the experience, the organizational capacity, and the operational process to deliver what the contract promises. Here are the questions worth asking.

Pre-Signing Contractor Questions

• Can you provide three references from comparable completed projects in the last 18 months?
• Who will be on site daily supervising the work — and what is their background?
• What is your current backlog and when can you start this project?
• Which phases of this project will your own crew perform vs. subcontract?
• How do you handle discovered conditions that were not in the original contract?
• What is your change order process and how are change orders priced?
• Can I see a sample contract from a similar project?

References: The Most Important Pre-Signing Step

Request three references from completed projects of comparable scope and timeline in the last 18 months. Call them. Ask four specific questions: Did the project finish within budget? If not, why not and by how much? Did the project finish on schedule? How were problems handled when they arose? Would you hire this contractor again?

A contractor who cannot provide recent references from comparable projects either does not have satisfied clients from comparable work (concerning) or is in a business development situation where they have not yet done work at this scope level (which may or may not be a concern depending on how the project is scoped). The inability to provide references is a signal worth taking seriously.

Contact references even if you think you will not have time. References are the single most reliable information source for predicting the contractor's performance on your project.

On-Site Supervision: Who Is Actually There Every Day

The quality of a construction project is determined by the people who are on site every day — not by the principals who showed up for the sales meeting. Ask specifically: who will be the on-site superintendent or foreman for this project? What is their background? How many other projects will they be supervising simultaneously?

A foreman who is supervising four projects simultaneously — spending one day per week on your project — provides a fundamentally different level of oversight than a foreman who is on your project five days per week. In the Hudson Valley, where construction volume has been high, the superintendent allocation question is particularly relevant.

Timber's self-perform model means that the crew working on your project are Timber employees accountable to Timber's management — not subcontractors who rotate between multiple general contractors based on scheduling. Jeff Wiegmann and Chris Rall are involved in active project oversight at the management level; on-site supervision is provided by experienced Timber foremen.

Change Order Process: The Mechanism That Determines Final Cost

The change order process is the mechanism by which the contract price changes from the initial value to the final value. Ask the contractor specifically: How are change orders priced? (Labor rate + material cost + markup percentage?) Who can authorize a change order? (Owner only, or can the superintendent authorize in the field?) Are change orders required to be in writing before work proceeds? (Yes, always — oral change orders that are later disputed are a common source of construction conflict.)

A contractor who is clear, systematic, and willing to put change order procedures in writing is demonstrating operational maturity. A contractor who is vague about the change order process ("we'll figure it out as we go") is signaling that the change order process will be a source of problems.

Contract Review: What to Look For

Review the contract document — not just the total number — before signing. Key elements: scope of work definition (specific enough to define what is included), exclusions (what is explicitly not included), allowances (what items are budget placeholders), payment schedule (tied to construction milestones, not calendar dates), change order procedure (in writing, signed by both parties before proceeding), schedule (start date, substantial completion date, and what happens if either party misses them), warranty provisions (labor and materials, duration, what is excluded), and dispute resolution process.

If the contract is a one-page letter of intent with a total number but minimal scope definition, it is not a construction contract that protects your interests. Ask for a more detailed contract document. A contractor who resists providing a detailed contract is a contractor whose interests are not aligned with yours.

Fun fact: A National Association of Home Builders survey found that only 31% of homeowners check references before signing a construction contract. Among homeowners who did check references and received clear positive feedback on schedule and budget performance, project satisfaction was 85%. Among homeowners who did not check references, project satisfaction was 57%. The correlation between reference checking and satisfaction is one of the most reliable pre-construction variables.

Related Reading

• What Is Preconstruction Planning
• Site Assessment New Construction
• How To Read Construction Estimate
• Preconstruction Design Process
• Back to Preconstruction Services

Frequently Asked Questions

Should I hire a lawyer to review a construction contract?

For contracts above $150,000, having a construction attorney review the contract before signing is a reasonable precaution. Construction attorneys familiar with New York State construction law can identify problematic provisions, confirm that the lien waiver and payment schedule provisions protect the owner's interests, and flag unusual or non-standard contract language. The cost ($500–$1,500 for a contract review) is modest relative to the contract value.

What is a performance bond and do I need one?

A performance bond is an insurance product that guarantees the contractor will complete the project as contracted — if the contractor defaults, the surety (bonding company) provides funds to complete the work. Performance bonds are common in commercial construction but unusual in residential construction — most residential contractors are not bonded, and requiring a bond would exclude most qualified residential contractors from consideration. For projects above $500,000, it is worth asking whether the contractor can be bonded, but do not treat the absence of bonding as disqualifying for residential projects.

What is the standard payment schedule for a renovation contract?

Standard residential renovation payment schedules tie payments to construction milestones rather than calendar dates. Common structures: deposit at signing (10–20% of contract value), payment at completion of demolition and rough-in, payment at completion of enclosure (drywall/tile/cabinet installation), payment at substantial completion, and final payment at punch list completion and certificate of occupancy. Avoid contracts that request large upfront payments or that do not tie payment to demonstrable progress. Front-loaded payment schedules reduce the contractor's financial incentive to complete the project promptly. Implementation Note — Cluster 8 1. Service page URL: /preconstruction/ — confirm with dev. 2. Publish priority: Article 8 (what to ask a contractor) → Article 3 (how to read a construction estimate) → Article 1 (what is preconstruction) → Article 6 (permitting). 3. Preconstruction content is unique positioning — most competitors do not have preconstruction as a named service or cluster. This cluster directly addresses the owner's highest anxiety (budget, timeline, what to expect) before they call anyone. 4. LinkedIn priority: Articles 3, 6, and 8 — all three address the professional context of the construction decision. Strong LinkedIn content for the Hudson Valley homeowner and investor audience. 5. Article 8 (what to ask a contractor) is a direct conversion asset — it is the last article a prospect reads before calling. CTA in this article should be particularly specific. 6. Named expert: Jeff Wiegmann on all articles as primary byline — preconstruction is his direct domain of expertise. 7. Articles 5 and 7 have evergreen value and should be referenced in email sequences for leads who are in the planning stage but have not yet engaged.