Contracts
What Should Be in Your Remodeling Contract in Southeastern PA?
The clauses every contract must have — and what it means when one is missing.
Last updated: May 2026 · Alex Smearman, Fedor Fabrication
Quick Answer
A remodeling contract should put eight things in writing: a fixed total price, a defined scope of work, a deposit and milestone payment schedule, a written change-order process, who pulls the permits and carries the license (with HIC number), how hidden conditions are handled, approximate start and completion dates, and the workmanship warranty and its duration. A handshake and a total dollar figure is how Southeastern PA homeowners end up stranded with a half-finished kitchen. Pennsylvania’s HICPA sets a legal floor for contracts over $500 — but the legal minimum is not a contract that protects you.
Key Takeaways
- HICPA requires a signed written contract for work over $500, with the contractor’s HIC number, scope, approximate dates, and total price.
- The clause homeowners most often discover is missing: who pulls the permit. If it’s not in the contract, assume it’s not happening.
- A real contract has a written change-order process — every change priced and signed before the work happens.
- Reasonable Southeastern PA structure: a 25–30% deposit and 4–5 milestone payments tied to completed work. PA caps the initial deposit at one-third.
- Fedor contracts include a 1-year workmanship warranty and a HIC number (PA202519) you can verify with the state in two minutes.
The Checklist
The Eight Clauses, at a Glance
| Clause | What it should say | What it protects you from | Red flag if missing |
|---|---|---|---|
| Fixed price & scope | One total for a defined scope, by area | “It grew once we started” | A range, or “estimate” |
| Deposit & milestones | ~25–30% deposit, 4–5 payments tied to completed work | Paying far ahead of progress | Large deposit, no schedule |
| Change-order process | Every change priced and signed before work | Surprise invoices | “We’ll figure it out” |
| Permits & license | Contractor pulls permits; HIC # listed | Unpermitted work, no recourse | Silent on permits |
| Hidden conditions | How behind-the-wall surprises are handled | Open-ended overruns | Not addressed |
| Start & completion | Approximate dates in writing | Indefinite stall | No dates |
| Workmanship warranty | Duration and what it covers | “Not my problem now” | No warranty named |
For the difference between a fixed price and a loose estimate, see what fixed-price remodeling actually means. For why a complete contract costs more than a thin bid, see why we cost more.
The Clause That Disappears
Why “Who Pulls the Permit” Has to Be in Writing
This is the clause that quietly disappears. We took over a stalled kitchen and bath in Newtown Square where the first contractor had dodged permits the whole time — nowhere in the contract; the homeowners only realized when they asked about inspections. Unpermitted work isn’t a paperwork problem. It surfaces at resale (when a buyer’s inspector flags it), at insurance claims (when the carrier denies coverage), and at the next contractor (who has to legalize someone else’s mistakes on your dime). In Pennsylvania, permits are issued and inspected by your local township or borough under the PA UCC. The contract should say, in plain words, that the contractor pulls the required permits and schedules the inspections. If it’s silent, assume permits aren’t happening. More warning signs: red flags when hiring a contractor.
When Scope Changes
How Change Orders Should Work
In our experience, this is where contracts quietly fail. We’ve walked clients through contracts where the change-order language was a single vague sentence — and 60 days later they were arguing over a $12,000 surprise. A real clause spells out four things: a written quote before any work begins, the markup percentage (typically 15–25%), the schedule-impact disclosure, and both-party signatures. Verbal change orders are a no. The best change-order clause is the one you rarely use — we plan heavily on the front end so changes stay minimal, with most occurring only in the first two or three demo days when older Southeastern PA homes reveal what they were hiding. When one happens, the process is the same every time:
| Step | What happens | Your sign-off |
|---|---|---|
| 1. Identify | Condition found, or you request a change | — |
| 2. Price & scope | Contractor writes the cost and the work | You receive it in writing |
| 3. Approve | You review and approve before work | Signed, before anything proceeds |
| 4. Schedule | Work slotted into the existing schedule | Confirmed timeline impact |
On a recent kitchen, the homeowner asked mid-build to add hardwood sanding and staining. We priced it, sent the written scope, got the signature, then scheduled it. No work or money moved before the signature. “We’ll settle up at the end” has cost Pennsylvania homeowners more than almost anything in this trade.
A Fair Deposit and Payment Schedule in Pennsylvania
A reasonable Southeastern PA structure is a 25–30% deposit at signing, followed by four to five milestone payments tied to completed work. PA caps the initial deposit at one-third of the contract price under HICPA, so anyone asking for more is also breaking state law. A contractor demanding 50%+ up front with no milestone schedule is asking you to finance their cash-flow problem. How payment ties to scope is also a key line when you compare estimates.
Allowances belong to specific line items, not lumped in the total. A real contract names the supplier and the spec ceiling: “Plumbing fixtures allowance $3,200 — Kohler/Delta from Weinstein Supply (West Chester); upgrades quoted in writing.” “Appliance allowance $8,500 — Gerhard’s (Malvern); upgrades quoted in writing.” Vague allowances (“fixtures $3,000”) are how a $55,000 quote becomes a $72,000 invoice.
Hidden Conditions and Warranty
We don’t carry a contingency line. We price the real scope and tell homeowners plainly that hidden conditions can surface in the first two or three demo days — knob-and-tube wiring remnants, undersized electrical panels, rotted subfloor under tile, out-of-square framing in a 1950s Media single or Main Line stone colonial. When one surfaces, it goes through the written change-order process above, with your sign-off, before any work proceeds. What the contract should not do is leave “unforeseen conditions” as an open-ended blank check. The contract should also name a workmanship warranty and its duration — ours is a 1-year workmanship warranty. A contract that names no warranty is telling you what happens if something goes wrong after final payment: nothing.
If the Contract Is Vague, Don’t Sign It
Vague contracts don’t become specific under pressure — they become the other party’s interpretation. The Newtown Square homeowners didn’t get stranded over a subtle legal term. They got stranded because the basics — permit responsibility, milestones tied to completed work, anything to hold a disappearing contractor to — weren’t in writing. The best protection in a contract is not a clever clause; it’s the planning that happens before signing. “We’ll figure it out as we go” is not a plan — it’s a billing strategy. See our process and questions to ask before you hire a remodeler.
FAQ
Frequently Asked Questions
Is a written contract legally required for remodeling in Pennsylvania?
Yes. Under HICPA, any home improvement over $500 requires a signed written contract that includes the contractor’s PA HIC registration number, a description of the work and materials, approximate start and completion dates, and the total price. Our contracts list HIC #PA202519 — verify any PA contractor at hicsearch.attorneygeneral.gov in two minutes.
What’s a fair deposit for a remodeling project?
A 25–30% deposit at signing, followed by four to five milestone payments tied to completed work. PA caps initial deposits at one-third of the contract price under HICPA, so any contractor asking for more is breaking state law. Be cautious of anyone demanding a large up-front payment with no milestone schedule.
What if my contract doesn’t mention permits?
Assume permits aren’t being pulled, and don’t sign. The contract should state that the contractor pulls the required permits and schedules the inspections under the PA UCC. Unpermitted work surfaces at resale, at insurance claims, and at the next contractor who has to legalize it.
What’s a normal workmanship warranty?
The warranty and its duration should be named in the contract itself, not implied. Fedor’s is a 1-year workmanship warranty. A contract that names no warranty is telling you what happens after final payment: nothing.
Can a contract really be fixed-price with no surprises?
Yes — the price is fixed for the defined scope, and only moves if you change that scope or a hidden condition is found and you approve the change through a signed change order. See what fixed-price remodeling actually means.
Sources
- PA Office of Attorney General — HICPA overview.
- PA HIC Registration & Verification — lookup any PA contractor’s registration.
- PA Uniform Construction Code — permits and inspections issued by your local township or borough.
- Remodeling Magazine Cost vs. Value — Middle Atlantic benchmarks.
Talk to Us
See What a Real Contract Looks Like
A 15-minute discovery call — we’ll walk through how we structure a Fedor contract for your project. No sales pitch. If we’re not the right fit, we’ll tell you and point you toward someone who is.
Or call us directly: 610-431-7150 · PA HIC #PA202519