Groundwork
SCREEN 04 — CONTRACT HEALTH SCORE — LOW FIDELITY

Contract Health Score

Overall Score
72 / 100
Your contract is FAIR but has areas that need attention.
Compared against 10,847 residential renovation contracts

Scoring Breakdown

Payment Schedule
58 / 100 ⚠
Your contract 40% upfront, 30% at midpoint, 30% at completion
Standard range 10–20% upfront, 25–30% at milestones, 10% at punch list
Concern
40% upfront is above standard. This reduces your leverage if work quality becomes an issue. Most contractors accept a lower upfront amount when asked.
What to ask
"Can we restructure payments at milestones instead? I'm comfortable with: 15% upfront 25% at rough-in 25% at drywall 25% at substantial completion 10% at punch list"
Timeline Specificity
85 / 100 ✓
Your contract Start date, end date, and 6 milestones specified
Above average. Most contracts only specify start and end dates.
Change Order Clause
45 / 100 ⚠
Your contract "Changes will be documented and billed at cost plus 20%"
Concern
No cap on change order markup. No requirement for written approval before work begins. No distinction between unforeseen site conditions and scope changes you requested.
What to ask
"Can we add the following to the change order clause: 1. All change orders require written approval before work begins. 2. Markup capped at 15% on unforeseen conditions. 3. Owner-requested scope changes billed at cost plus 10%."
Dispute Resolution
90 / 100 ✓
Your contract Mediation required before litigation
Strong clause. Mediation before litigation protects both parties from costly legal fees.
Completion Definition
65 / 100 ⚠
Your contract "Work will be completed to owner's satisfaction"
Concern
"Satisfaction" is subjective and difficult to enforce legally. This language is common and courts interpret it inconsistently.
What to ask
"Can we define completion as: 1. Passing final inspection by local building department. 2. Completing a joint punch list walk-through. 3. Receiving certificate of occupancy, if applicable. This protects both of us."
Warranty
80 / 100 ✓
Your contract 1-year workmanship warranty included
Standard. 1-year workmanship warranty is the industry norm.
Insurance & Licensing
95 / 100 ✓
License #GC-2024-08841 ACTIVE
Gen. liability $1,000,000 VERIFIED
Workers' comp Active VERIFIED
All credentials verified against state licensing board and certificate of insurance.
Lien Waiver Provision
70 / 100
Your contract Partial waivers at each payment. Full waiver at final payment.
Note
Language is standard. The risk is in execution, not the contract. Verify your contractor actually delivers signed waivers at each payment milestone — do not release payment without one.
Cancellation Terms
55 / 100 ⚠
Your contract 10% cancellation fee at any point (total contract: $67,000)
Your exposure $6,700 — even before work begins
Concern
No distinction between cancellation before work begins and cancellation mid-project. A flat 10% fee regardless of stage is one-sided.
What to ask
"Can we restructure the cancellation terms: Before work begins: No fee beyond any materials already ordered. After work begins: Fee is proportional to work completed, agreed in writing. This is fair to both sides."

Summary

Strong
4
Timeline Dispute Resolution Warranty Insurance
Needs Attention
4
Payment Schedule Change Orders Completion Def. Cancellation
Verify
1
Lien Waivers
This contract is not unusual. Many of these concerns are standard in the industry — which is part of the problem. These clauses favor contractors because homeowners rarely push back. You now know what to ask for. Most contractors will negotiate when asked professionally.