What items to put in contract for contractors?

[Steven Barr]

I am planning to have my attorney draft a contract for my contractors to sign. 

What specifics should I include in this contract? (Liens, draws based on completed work only, properly insured, etc…)

Thanks! 

[Will Barnard]

Quote from @Joel Forsythe:

As a semi-retired lifer in construction, from “young guy and a truck” to GC to Design-Build based company- I wouldn’t sign any contract but the one my company generates. Even at my earliest solo outset, the hairs on the back of my neck would have bolted upright if a potential client dropped some contract on me instead of the other way around. It’s become absurd- the license is literally “to contract” trade services. If who you are approaching doesn’t already have one (a contract), and you want that level of detail, you’re not matching up with a pro of your expectations, but a tradesman who doesn’t know anything about running a business on top of a job site. 

I know there’s a mass of inexperienced contractors out there, but evolving into a transaction where the client drafts the contract is absurd in the residential market. Sure, major commercial projects, B2B based ventures, possibly exceeding 1-2mil+ there may be an addendum negotiation, but the service provider has the ultimate say in what they choose to put in writing. If you are referring to a project of that level, you wouldn’t be dealing with some rookie without a contract at the ready.

 This advice above hits the nail on the head. Clients don't (and should not have to) produce contracts for construction, the contractor does that. Each state has its own laws and regulations and each licensed contractor should know these rules and include, at minimum, what is required by law in their state. 

As both a contractor and a client, I have personal experience on both sides of the fence here. One thing I include (for any significant contract amount) is penalties for contractor being late and bonus for finishing early without sacrificing quality. These terms help keep both parties in complete alignment with the goal, to get the job done efficiently. As a client, paying a bonus to the contractor (typically calculated by my daily cost savings of holding costs) actually has zero cost to me and eliminates that bonus time from opportunity loss, thus a win win for both me and the contractor. As a contractor, same thing, getting a bonus increases my profit margin and not performing to the standards agreed to penalizes my profit margin, a fair trade off.