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Homeowner Contractor Form

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HOMEOWNER/CONTRACTOR AGREEMENT
FHA 203(k) Rehabilitation Program

HOMEOWNER/CONTRACTOR AGREEMENT
FHA 203(k) Rehabilitation Program

Owner’s Name(s): FHA Case No:

Address:

City: State: Zip Code:

Telephone Work: Home:

Contractors Name:

Address: City: St: Z/C:

Telephone: Work: Cell:

THIS AGREEMENT (three pages) made this date, , between the above mentioned Homeowner (Owner) and Contractor, is for the rehabilitation of the property located at that has been approved for FHA mortgage insurance under Section 203(k) of the National Housing Act.

The Owner(s) shall pay the Contractor the sum of $ for completion of the work, including all sales tax due by law, together with such increases or decreases in the contract price as may be approved in writing by the Lender.

The work will begin within 30 days of loan closing with the Lender and will be completed no later than , unless delayed beyond the Contractor’s control.

The contract documents consist of the architectural exhibits listed in the Rehabilitation Loan Agreement between the Owner(s) and the Lender, or as described below (or on an attached sheet):

1. Contract Documents: This Agreement includes all general provisions, special provisions and architectural exhibits that were accepted by the lender. Work not covered by this agreement will not be required unless it is required by reasonable inference as being necessary to produce the intended result. By executing this Agreement, the contractor represents that he/she has visited the site and understands local conditions, including state and local building regulations and conditions under which the work is to be performed.

2. Owner: Unless otherwise provided for in the Agreement, the owner will secure and pay for necessary easements, exceptions from zoning requirements, or other actions which must precede the approval of a permit for this project. If owner fails to do so then the contract is void. If the contractor fails to correct defective work or persistently fails to carry out the work in accordance with the agreement or general provisions, the owner may order the contractor in writing to stop such work, or a part of the work, until the cause for the order has been eliminated.

Owners Initials: Contractor’s Initials:

-Continued on Page Two-

3. Contractor: The contractor will supervise and direct the work and the work of all subcontractors. He/she will use the best skill and attention and will be solely responsible for all construction methods and materials and for coordinating all portions of the work. Unless otherwise specified in the Agreement, the contractor will provide for and/or pay for all labor, materials, equipment, tools, machinery, transportation, and other goods, facilities, and services necessary for the proper execution and completion of the work. The contractor will maintain order and discipline among employees and will not assign anyone unfit for the task.

The contractor warrants to the owner that all materials and equipment incorporated are new and that all work will be of good quality and free of defects or faults. The contractor will pay all sales, use and other taxes related to the work and will secure and pay for building permits and/or other permits, fees, inspections and licenses necessary for the completion of the work unless otherwise specified in the Agreement.

The contractor will indemnify and hold harmless the owner from and against all claim, damages, losses, expenses, legal fees or other costs arising or resulting from the contractors performance of the work or provisions of this section.

4. Subcontractor: Selected by the contractor, except that the contractor will not employ any subcontractor to whom the owner may have a reasonable objection, nor will the contractor be required by the owner to employ any subcontractor to whom the contractor has a reasonable objection.

5. Work by Owner or Other Contractor: The owner reserves the right to perform work related to the project, but which is not a part of this Agreement, and to award separate contracts in connection with other portions of the project not detailed in this Agreement. All contractors and subcontractors will be afforded reasonable opportunity for the storage of materials and equipment by the owner and by each other. Any costs arising by defective or ill-timed work will be borne by the responsible party.

6. Binding Arbitration: Claims or disputes relating to the Agreement or General Provisions will be resolved by the Construction Industry Arbitration Rules of the American Arbitration Association (AAA) unless both parties mutually agree to other methods. The notice of the demand for arbitration must be filed in writing with the other party to this Agreement and with the AAA and must be made in a reasonable time after the dispute has arisen.

7. Cleanup and Trash Removal: The contractor will keep the owner’s residence free from waste or rubbish resulting from the work. All waste, rubbish, tools, construction materials, and machinery will be removed promptly after completion of the work by the contractor.

8. Time: With respect to the scheduled completion of the work, time is of the essence. If the contractor is delayed at anytime in the progress of the work by change orders, fire, labor disputes, acts of God or other causes beyond the contractor’s control, the completion schedule for the work or affected parts of the work may be extended by the same amount of time caused by the delay. The contractor must begin work no later than 30 days after loan closing and will not cease work for more than 30 consecutive days.

9. Payments and Completion: Payments may be withheld because of defective work not remedied; failure of contractor to make proper payments to subcontractors, workers, or suppliers; persistent failure to carry out work in acceptance with this Agreement or these general conditions, or legal claims. Final payment will be due after complete release of any and all liens arising out of the contract or submission of receipts or other evidence of payment covering all subcontractors or suppliers who could file such a lien.

Owners Initials: Contractor’s Initials:

-Continued on Page Three-

10. Protection of Property and Persons: The contractor is responsible for initiating, maintaining, and supervising all necessary or required safety programs. The contractor must comply with all applicable laws, regulations, ordinances, orders or laws of federal, state, county or local governments. The contractor will indemnify the owner for all property loss or damage to the owner caused by his/her employees or his/her direct or subcontractors.

11. Insurance: The contractor will purchase and maintain such insurance necessary to protect from claims under workers compensation and from any damage to the owner(s) property resulting from the conduct of this contract.

12. Changes in the Contract: The owner may order changes, additions or modifications (using form HUD-92577) without invalidating the contract. Such changes must be in writing and signed by the owner and accepted by the lender. Not all change order requests may be accepted by the lender, therefore, the contractor proceeds at his/her own risk if work is completed without an accepted change order.

13. Correction of Deficiencies: The contractor must correct promptly any work of his/her own or his/her subcontractors found to be defective or not complying with the terms of the contract.

14. Warranty: The contractor will provide a one-year warranty on all labor and materials used in the rehabilitation of the property. This warranty must extend one year from the date of completion of the contract or longer if prescribed by law unless otherwise specified by other terms of this contract. Disputes will be resolved through the Construction Industry Arbitration Rules of the American Arbitration Association.

15. Termination: If the owner fails to make a payment under the terms of this Agreement, through no fault of the contractor, the contractor may, upon ten working days written notice to the owner, and if not satisfied, terminate this Agreement. The owner will be responsible for paying the contractor for all work completed. If the contractor fails or neglects to carry out the terms of the contract, the owner, after ten working days written notice to the contractor, may terminate this Agreement.

Owner Signature:

Date:

Owner Signature:

Date:

Contractor Signature:

Date:

Loan #: Borrower:

Form Reference: FHA 203(k) Home Owner - Contractor Agreement Form 2420 Rev. 1/5/05

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What the Homeowner Contractor Form Is and When It’s Used

The Homeowner Contractor Form is a written agreement used when a homeowner hires a contractor to perform work on residential property. It records scope, schedule, materials, payment terms, warranties, insurance, and dispute resolution to create a clear allocation of rights and obligations. Properly executed, the form reduces misunderstandings, supports permit and lien processes when applicable, and provides evidence for payment or warranty claims. Many versions attach plans, change order procedures, proof of license, and insurance certificates for full clarity and enforceability.

Why Documenting the Work Matters

A Homeowner Contractor Form clarifies responsibilities, timelines, and payment milestones to reduce disputes and support insurance or warranty claims. It also records contractor license and insurance details, which permits and local authorities often require.

Why Documenting the Work Matters

Who Typically Uses This Form

Typical users include homeowners, licensed contractors, and project managers who need documented agreements for residential work.

  • Homeowners protecting project scope, budget, schedule, and warranty expectations on residential renovations.
  • Licensed contractors documenting estimates, change orders, insurance, and lien rights for payment protection.
  • Property managers or HOAs overseeing multiple vendor contracts and consistent contract terms across projects.

Use the form whenever you need a clear written record for permits, inspections, payments, or dispute resolution.

Essential Elements of a Professional Contractor Agreement

A professional Homeowner Contractor Form combines scope, schedule, payment terms, change order process, insurance and warranties into a single, enforceable document.

Scope of Work

Clearly describe tasks, deliverables, materials, and exclusions. Include references to attached plans or specifications and define workmanship standards, tolerances, and completion criteria to prevent scope disputes.

Payment Terms

Specify contract price, payment schedule, retainage, deposit, and milestone payments. Include accepted payment methods, late payment interest, and procedures for disputed invoices to reduce nonpayment risk.

Schedule

State start date, substantial completion, critical milestones, and procedures for delays, weather days, or contractor-caused extensions. Tie progress payments to verified milestones.

Change Orders

Define how scope changes are requested, approved, priced, and documented. Require signed change orders before extra work proceeds to avoid billing disputes.

Insurance & Licenses

Require contractor proof of liability insurance, workers' compensation, and state or local license numbers. Specify minimum coverage limits and name homeowner as additional insured when applicable.

Warranties & Remedies

Identify warranty duration, scope, remedy process for defects, and exclusions. Include dispute resolution mechanism such as mediation or arbitration and applicable governing law.

Step-by-Step: Completing and Exchanging the Form

Follow these steps to complete and exchange a Homeowner Contractor Form correctly and efficiently online.

  • 01
    Prepare Document: Gather plans, license, insurance, and scope details.
  • 02
    Fill Fields: Complete all required fields and attach exhibits.
  • 03
    Review & Approve: Each party reviews, initial changes, and confirms acceptance.
  • 04
    Sign & Distribute: Obtain signatures, notarize if required, and share final copies.

How to Configure an Online Workflow

Configure an online workflow to route, authenticate, and store the Homeowner Contractor Form with consistent fields and audit details.

Field Name and Configuration Setting Configuration description and default value for each workflow field
Authentication Method for Signer (Email/SMS/KBA) Email link by default; SMS code or KBA for higher assurance
Conditional Fields for Change Orders Show pricing fields only when a change order is marked yes
Template Management and Version Control Save approved template and lock fields to prevent unauthorized edits
Audit Trail and Storage Settings Enable timestamps, signer IP capture, and secure storage format PDF/A

Typical Routing and Delivery Workflow

Typical routing for a Homeowner Contractor Form follows upload, field placement, signer identification, then final delivery with audit records.

  • Upload Document: Sender uploads the contract and attachments.
  • Assign Fields: Place signature, date, and payment fields.
  • Add Signers: Enter signer emails and assign signing order.
  • Deliver & Archive: Send copies to parties and store audit trail.

Delivery Channels, Integrations, and Authentication Choices

Choose delivery channels and authentication methods suitable for risk level and local requirements, including SMS codes, KBA, or in-person verification.

  • File Formats: PDF, Word, or DOCX
  • Integrations: Salesforce, NetSuite, Google Workspace, Procore
  • Auth Options: Email, SMS code, KBA, or ID verification

Required Information: What the Form Should Capture

Owner Name: Enter full legal name as on ID
Contractor Name: Company or individual legal name
Addresses: Street, city, state, ZIP
Effective Date: Use MM/DD/YYYY format
Payment Amount: Total contract amount in dollars
Signatures: Printed name, signature, and date

Key Dates to Track in the Agreement

Key dates and deadlines for contractor agreements typically include signature, start, completion, inspection, and final payment deadlines.

Signature Execution Deadline for Contract:

Date parties must sign to preserve start schedule.

Work Start Date and Mobilization Deadline:

Contractor begins on-site mobilization and initial tasks.

Substantial Completion Milestone and Handover Date:

Date when project is substantially complete and ready for inspection.

Final Inspection, Punchlist and Acceptance:

Inspection to confirm work meets contract standards prior to final payment.

Final Payment Due Date and Release of Retainage:

Date when remaining balance and retainage are due if punchlist complete.

Common Preparation Mistakes to Avoid

  • Vague scope descriptions that omit excluded work or materials, leading to change order disputes and unanticipated cost increases during construction.
  • Failing to verify contractor licensing, insurance, and permit responsibilities can expose homeowners to liability and leave projects without proper coverage.
  • Missing or inconsistent dates, ambiguous payment triggers, and lack of retainage provisions commonly cause delayed payments and contractor claims.
  • Not documenting approved change orders in writing can result in unpaid work, contractor liens, or prolonged litigation to resolve payment issues.

Penalties and Legal Risks from Incorrect Forms

1099 Penalties: Penalties $60–$660+ per form (IRC §6721)
Backup Withholding: 24% withholding rate
Liens & Claims: Possible mechanics lien filings
Permit Violations: Work halted; fines possible
Invalid Contract: Missing signatures may void contract
I-9 / Employment: I-9 error fines $281–$2,789 (8 CFR §274a.2)

Baseline eSignature Pricing and Feature Comparison

Compare baseline pricing and core features across common eSignature vendors to choose a solution for Homeowner Contractor Form workflows.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Varies by plan Varies by plan Varies by plan Varies by plan
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies Varies Varies

FAQs and Quick Troubleshooting for the Form

Answers to common questions about completing, signing, and storing the Homeowner Contractor Form, plus quick fixes for typical problems.


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