What should a contractor agreement include?

Scope of work, total price, a milestone-based payment (draw) schedule, start and completion dates, materials responsibility, a written change-order process, warranties, license and insurance proof, lien waivers, and a termination clause.

How should I pay a contractor on a flip?

Tie payments to completed milestones through a draw schedule rather than paying a large sum up front. Hold a final retainage (often 5–10%) until the punch list is done, and collect a lien waiver with each payment.

Free template

Contractor Agreement Checklist for Flippers (Free)

Get the terms in writing before the first swing of the hammer.

Quick answer

A contractor agreement for a flip should clearly cover the scope of work, total price and payment schedule (tied to milestones), start and completion dates, who supplies materials, insurance and licensing, change-order process, warranties, and lien waivers. Putting these in writing before work starts prevents the disputes that derail flips. Use the checklist below.

A clear written agreement is what keeps a contractor relationship from going sideways. Before any work starts, make sure your agreement addresses each item below — and have a local attorney review your standard contract.

Must-have terms

Detailed scope of work (attach the SOW)
Total contract price
Payment schedule tied to milestones (a draw schedule)
Start date and completion date
Who supplies materials
Change-order process (written, signed, priced)
Warranty on workmanship

Protect yourself

Proof of license (where required)
Proof of liability insurance & workers' comp
Lien waivers with each payment
Permit responsibility
Cleanup & debris removal
Termination clause
Retainage (hold a % until final completion)

How to use it

Attach your scope of work and draw schedule as exhibits.
Never pay a large deposit up front — tie payments to completed milestones.
Collect a lien waiver with every payment to avoid surprise liens.
Verify license and insurance before signing, not after.

This is an educational checklist, not legal advice. Have a licensed attorney in your state review your contractor agreement before using it.

Skip the spreadsheets — do it in FlipOS

FlipOS builds your scope, budget, draw schedule, and deal analysis digitally and keeps them tied to each project. 14-day free trial, no credit card.

Get started free

Frequently asked questions

What should a contractor agreement include?: Scope of work, total price, a milestone-based payment (draw) schedule, start and completion dates, materials responsibility, a written change-order process, warranties, license and insurance proof, lien waivers, and a termination clause.
How should I pay a contractor on a flip?: Tie payments to completed milestones through a draw schedule rather than paying a large sum up front. Hold a final retainage (often 5–10%) until the punch list is done, and collect a lien waiver with each payment.