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Pre-Construction Decision Guide
What to Review Before Signing a Construction Contract
Before signing, confirm that the contract and every referenced document describe the same project: scope, price, allowances, exclusions, schedule, payment milestones, change procedures, owner responsibilities, warranty, and completion standards.
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Direct Answer
Review the agreement as a connected project system—not as a single document.
A construction contract may incorporate drawings, specifications, proposals, allowances, schedules, exhibits, and builder standards. If those materials conflict or leave decisions open, the homeowner may not have a reliable picture of what is included.
Start by confirming the contracting parties and project address. Then trace the scope, selections, price, payment schedule, change process, completion requirements, insurance, warranty, and termination provisions across every referenced document.
Contract review has two different jobs.
Project and scope review asks whether the documents accurately describe the intended build and whether responsibilities, assumptions, allowances, and exclusions are organized clearly.
Legal review asks what the agreement means under applicable law and evaluates rights, remedies, liability, dispute terms, and enforceability. RCC does not provide legal advice; consult a qualified attorney before signing.
12-Point Review
The construction contract checklist
Each item should be clear enough that the homeowner, builder, design team, and attorney can identify the same obligation and supporting document.
Parties and project identity
Confirm legal names, business entity, license holder or qualifying agent, project address, owner names, notice addresses, and authorized representatives.
Complete document list
List every drawing, specification, proposal, exhibit, addendum, selection schedule, and builder standard incorporated into the agreement—with dates and versions.
Scope of work
Verify what the builder will furnish, coordinate, install, supervise, permit, test, and complete. Match the language to the final plans and proposal.
Exclusions and owner-supplied items
Identify work, materials, fees, utilities, site conditions, design services, and specialty items that remain outside the builder’s responsibility.
Contract price and pricing method
Understand whether pricing is fixed, cost-plus, or another structure; what the fee covers; and which items can change the amount.
Allowances and selections
Record each allowance amount, what it includes, markup treatment, selection deadline, pricing source, and how overages or credits will be calculated.
Schedule and extensions
Define commencement conditions, target milestones, substantial completion, final completion, owner decision deadlines, and permitted extensions.
Payment and draw process
Connect each payment to defined progress, documentation, review timing, retainage if applicable, and the process for disputed amounts.
Changes and written authorization
Clarify who may request or approve a change, required cost and schedule information, markup, and whether work may begin before written approval.
Site, access, and owner duties
Identify responsibilities for surveys, utilities, financing, access, temporary facilities, selections, design decisions, insurance, and owner vendors.
Completion and closeout
Define substantial completion, punch-list handling, final completion, occupancy documents, manuals, warranties, releases, and final payment conditions.
Warranty, disputes, and termination
Locate warranty coverage and exclusions, notice procedures, correction process, dispute path, suspension rights, termination provisions, and governing law for attorney review.
Document Control
Documents to assemble before the contract is final
A complete review requires the current version of every document that affects scope, cost, schedule, or responsibility.
Project and pricing documents
- Final builder proposal and estimate detail
- Issued drawings and specifications
- Allowance and selection schedule
- Written exclusions and assumptions
- Alternates, options, and accepted revisions
- Preliminary construction schedule
Business and closeout documents
- License and business-entity information
- Current insurance certificates
- Payment or draw schedule
- Change-order form and markup schedule
- Written warranty document
- Sample closeout and final-payment requirements
Cross-Document Test
Make the proposal, plans, and contract agree
The review is not finished when each document looks reasonable by itself. Compare the same decision across the full set.
| Decision | Where to check | Question to resolve |
|---|---|---|
| Project scope | Contract, proposal, plans, specifications | Do the documents describe the same work and quality level? |
| Price | Contract sum, estimate, alternates, allowances | Which amounts are firm, estimated, or still owner-dependent? |
| Selections | Allowance schedule, specifications, finish schedules | What remains undecided, by when, and with what budget? |
| Schedule | Contract dates, milestone schedule, selection deadlines | What must happen before work starts and what can extend time? |
| Payments | Draw schedule, milestone definitions, closeout list | What evidence supports each payment and final payment? |
| Changes | Contract clause, change form, markup terms | Who approves price and time before changed work begins? |
| Completion | Definitions, punch list, warranty, occupancy documents | What distinguishes substantial completion from final completion? |
Resolve Before Signing
Six questions that deserve a written answer
Which document controls?
If the contract, drawings, specifications, or proposal conflict, the agreement should identify how the conflict will be resolved.
What is still undecided?
Create one list of open selections, design items, allowances, site questions, and owner-supplied products.
What changes the price?
Separate known scope from allowances, contingencies, unit prices, unknown conditions, and owner changes.
What changes the schedule?
Identify dependencies tied to permits, financing, design completion, selections, site conditions, weather, and change orders.
What supports each draw?
Connect payments to defined progress and determine what documentation will accompany each request.
What completes the project?
Define occupancy, substantial completion, punch work, final documentation, warranty delivery, and final payment.
A Practical Sequence
How to organize the review
Collect
Assemble the proposed agreement and every incorporated document, using current dated versions.
Map
Create one list of scope, price, allowance, schedule, payment, change, and closeout provisions.
Compare
Cross-check the contract against the final proposal, plans, specifications, and accepted decisions.
Resolve
Ask the builder and design team to document clarifications, missing decisions, and agreed revisions.
Review legally
Have a qualified attorney evaluate legal rights, remedies, liability, dispute, and termination terms before signing.
RCC’s Role
Project clarity and legal advice are different responsibilities.
Your builder represents the build. RCC represents you—while working collaboratively with the professionals responsible for design, construction, inspection, engineering, and law.
RCC can help homeowners
- Organize the contract and incorporated documents
- Compare scope against proposals, plans, and specifications
- Identify allowances, exclusions, assumptions, and open decisions
- Prepare project questions for the builder and design team
- Coordinate project information for qualified legal review
RCC does not replace
- A qualified attorney providing legal advice
- The builder’s contractual construction responsibilities
- Architectural or engineering design services
- Code officials or independent inspectors
- The homeowner’s final approval and signature decision
This educational guide is not legal advice and does not interpret any specific contract. Construction agreements and project circumstances vary. Consult a qualified attorney licensed in the applicable jurisdiction before signing.
Georgia Resources
Verify information through official sources
Georgia Consumer Protection Division
Georgia’s homeowner guidance recommends written estimates based on identical project specifications and a written contract addressing scope, dates, total cost, and warranties.
Read Georgia homeowner guidance →Georgia contractor licensing
Use the Secretary of State’s official resources to review residential contractor licensing information and access license-search tools.
Review licensing resources →Homeowner Questions
Construction contract review FAQs
Should I sign if the drawings or selections are not finished?
First identify exactly what remains incomplete and how those open items can affect scope, price, and schedule. Ask the builder and design team to document the treatment of unfinished information, and obtain legal advice before signing.
Is the proposal part of the contract?
Only the agreement and its incorporated documents can answer that. Confirm that the final dated proposal is expressly included—or that its scope is fully carried into the contract documents—and ask an attorney to evaluate the legal effect.
What should an allowance state?
At minimum, identify the item, budget amount, what costs are included, selection deadline, pricing source, markup treatment, and how overages or credits are calculated.
How should change orders work?
The documents should identify who can approve changes, what cost and schedule information is required, applicable markup, and whether changed work may proceed before written authorization.
Can RCC provide legal contract review?
No. RCC can organize project and scope information, identify questions, and help prepare the document set. A qualified attorney should provide legal interpretation and advice.
When should I complete the Build Risk Assessment™?
Complete it before signing or whenever major project decisions remain unresolved. It helps identify which scope, team, budget, documentation, and oversight questions deserve attention next.
Reviewed for RCC homeowner education • Updated August 28, 2026
Before You Sign
Find the project questions that deserve attention now.
The free Build Risk Assessment™ helps homeowners organize unresolved decisions across scope, team, budget, documents, and project oversight.
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