A homeowner once told us, “I read the contract, but I didn’t know what I was looking for.”
That sentence explains why so many construction disputes don’t start with bad intentions — they start with unclear agreements.
Builder contracts are not just paperwork. They are the operating manual for the project. When they are clear, projects run smoother. When they are vague, problems hide until they surface at the worst possible moment.
In Texas especially, contracts carry more weight than many people realize. Because contractor licensing is decentralized, the contract becomes the primary mechanism for accountability.
Here are the ten things that matter most — not from a legal theory standpoint, but from what we’ve seen play out in real projects.
First: Scope of work.
The scope should be specific enough that both parties understand what is included and what is not. “Remodel kitchen” is not a scope. Materials, finishes, systems, exclusions, and assumptions should be spelled out clearly.
If something isn’t written, it’s assumed by one side and disputed by the other.
Second: Payment structure.
How and when payments are made matters more than the total price. Contracts should define deposits, progress payments, and final payment conditions. Payments tied to milestones protect both parties. Large upfront payments without progress benchmarks are a red flag.
Third: Change order process.
No project stays exactly as planned. A good contract defines how changes are requested, priced, approved, and documented. Verbal changes are where budgets and relationships go to die. Everything should be written and acknowledged before work proceeds.
Fourth: Permits and inspections.
The contract should state who is responsible for pulling permits and scheduling inspections. If this is vague or pushed onto the homeowner “to save time,” that’s a warning sign. Permits protect the homeowner, not the contractor.
Fifth: Timeline and delays.
Dates matter, but so do explanations. A contract should define the expected duration and explain what happens when delays occur. Weather, inspections, and supply issues are real — but they should be addressed transparently, not used as blanket excuses.
Sixth: Insurance and liability.
The contract should confirm that the builder carries general liability insurance and clarify how risk is handled if something goes wrong. This isn’t about mistrust. It’s about understanding who is responsible when accidents happen.
Seventh: Subcontractors and trades.
Homeowners often assume builders use licensed professionals. The contract should clarify that licensed trades will be used where required and that the builder is responsible for coordinating them. If accountability is pushed downstream, homeowners are left exposed.
Eighth: Warranties and workmanship standards.
What happens after completion matters. Contracts should explain what is warranted, for how long, and how issues are addressed. Vague promises of “quality work” don’t help when something fails six months later.
Ninth: Termination and dispute resolution.
No one plans for a project to end badly, but contracts should explain what happens if it does. How can either party terminate? How are disputes resolved? Mediation, arbitration, or court — clarity here prevents escalation later.
Tenth: Who owns the documents and decisions.
Plans, specifications, selections, and approvals should have a clear owner. Confusion about who approved what leads to conflict. A good contract creates a paper trail that protects everyone.
The homeowner who read but didn’t understand their contract learned this lesson the hard way. Their agreement lacked change order clarity and timeline accountability. When the project drifted, there was no mechanism to correct it without conflict.
At BUSATX, we treat contracts as collaboration tools, not weapons. A good contract doesn’t assume failure. It anticipates reality.
Homeowners shouldn’t need to be lawyers to protect themselves. They just need agreements that reflect how projects actually unfold.
If a contract feels vague, rushed, or one-sided, that discomfort is worth listening to. Questions asked before signing are far easier than disputes resolved after work begins.
A strong contract doesn’t slow a project down. It gives it structure.
And structure, more than optimism, is what keeps construction projects healthy.