Residential Construction Contract Checklist for Utah Homeowners

A residential construction contract is not just a price for a house. For a Utah homeowner, it is the operating system for the build: who is responsible for which decisions, when money leaves your control, how changes get approved, what documentation protects the property, and what happens if the project slows down.

The goal of this checklist is not to turn every contract review into a fight. The goal is to make vague terms visible while you still have leverage to clarify them. Use it before signing a custom home contract, a major remodel agreement, or a large fixed-price or cost-plus proposal.

1. Confirm the contractor, license, and insurance before reading the price

Before you negotiate line items, make sure the contracting party is the same party you intend to hire.

Utah’s Division of Professional Licensing publishes contracting information and notes updated contractor insurance minimums of $1 million per occurrence and $3 million aggregate. DOPL also provides a generic Residential Construction Agreement and exhibits for plans, change orders, and proof of licensure and insurance.

Ask for:

• The legal business name on the contract.
• The DOPL license number and license classification.
• A current certificate of insurance issued by the insurance provider, not just a screenshot.
• Clarification on whether the contracting entity is registered or eligible for Utah’s residential lien recovery protections.
• Names of any major subcontractors already selected.

If the bid came from one company but the contract names another entity, stop and ask why. If the contract refers to a license, insurance exhibit, or proof document, get it attached before signing.

Useful Utah source: Utah DOPL contracting information.

2. Make the contract package complete

Most disputes begin when the signed documents do not all say the same thing. A complete residential construction contract package should identify exactly which documents control the deal.

Look for:

• Main agreement.
• Plans and plan date.
• Specifications and finish schedule.
• Allowance schedule.
• Draw or payment schedule.
• Change-order form.
• Warranty language.
• Sitework assumptions.
• Exclusions and owner-responsibility list.
• Any addenda or alternates.

Ask: If two documents conflict, which document controls?

For example, a plan may show built-ins, the bid may exclude cabinetry, and the allowance sheet may include only a small placeholder. If the contract does not state which document wins, you may not know whether the built-ins are included until the change order arrives.

3. Tie the scope to visible decisions

A good contract is not merely long. It is specific enough that a homeowner, builder, lender, designer, and inspector can understand what is supposed to happen next.

For each major cost category, ask:

• What is included in base scope?
• What is excluded or marked “by owner”?
• Which selections are final and which are placeholders?
• Which trades are included: excavation, concrete, framing, roofing, windows, mechanical, electrical, plumbing, insulation, drywall, cabinets, flooring, paint, landscaping?
• Are utility connections, impact fees, engineering revisions, geotechnical work, or permit resubmittals included?
• Are appliances, lighting fixtures, plumbing fixtures, hardware, mirrors, shelving, and window coverings included?

If a line item says “standard” or “builder grade,” ask for the actual standard. A vague finish level is not a finish schedule.

4. Treat allowances as risk buckets, not free money

Allowances are normal in custom construction because many selections are not final when the contract is signed. But an allowance is also a place where budget risk hides.

For every allowance, ask:

• What exactly does this allowance cover?
• Is the number for material only, or installed cost?
• Does it include labor, tax, freight, delivery, storage, waste, and GC markup?
• What happens if the final selection is below the allowance?
• What happens if it is above the allowance?
• When do selections have to be made to avoid schedule delay?
• Who controls vendors and ordering?

Example: a $20,000 cabinet allowance may be realistic for one plan and unrealistic for another. A $15,000 lighting allowance may sound large until you learn it excludes decorative fixtures, under-cabinet lights, exterior fixtures, dimmers, and installation labor.

The contract should explain not just the allowance amount, but the adjustment mechanism.

Payment and draw questions

The payment schedule determines how much money is ahead of completed work. A lower contract price can be higher risk if payments are front-loaded.

Review:

• Deposit amount and what it buys.
• Whether draws are tied to dates, milestones, inspections, or percentage completion.
• Whether the lender must inspect before funds release.
• Whether lien waivers are required with each draw.
• Whether retainage is held back.
• How stored materials are paid for.
• How owner-purchased materials are handled.
• What documentation is required before final payment.

A homeowner-friendly draw schedule makes payment events observable. “Foundation complete” is clearer than “25% due on request.” “Rough MEP inspection passed” is clearer than “mechanicals underway.”

If there is a construction loan, ask whether the builder’s expected draw timing matches the lender’s process. A mismatch can create conflict even when everyone is acting in good faith.

6. Understand Utah preliminary notices and lien visibility

Utah homeowners should pay attention to the State Construction Registry (SCR). The SCR says homeowners can search filings on their property, and that contractors, subcontractors, and suppliers file notices to show they are working on the home. The SCR also says only parties who have filed a Preliminary Notice on the property have the right to file a lien.

Utah’s SCR preliminary notice page states that contractors, subcontractors, and suppliers should file a preliminary notice within 20 days after they started working on the project to preserve lien rights.

This does not mean every notice is a problem. It means someone has identified themselves as part of the project payment chain. As an owner, that is useful information.

Ask your builder:

• Who is expected to file preliminary notices?
• How will you know subs and suppliers are being paid?
• Will each draw include conditional lien waivers for current payment and unconditional waivers after payment clears?
• Will final payment require final lien waivers and a list of all parties who worked on the project?

Useful Utah sources: State Construction Registry homeowner guide and SCR preliminary notice page.

7. Require a real change-order process

A change order should answer four questions:

1. What exactly changed?
2. How much does it add or deduct?
3. How does it affect the schedule?
4. Who approved it, and when?

The contract should state whether change orders must be written and signed before work proceeds. It should also state how markup, supervision, overhead, profit, tax, freight, restocking, design time, and schedule impacts are handled.

Be careful with language that allows verbal direction, text messages, or field conversations to become billable work without a signed change order. Fast projects create pressure. Your contract should slow down expensive decisions.

8. Put communication and owner decisions into the contract

Custom homes stall when decisions are invisible. The contract should say how selections, RFIs, approvals, notices, and payment requests are delivered.

Ask:

• Is email enough for notice, or is a formal portal required?
• Who on the owner side can approve cost changes?
• Who on the builder side can bind the contractor?
• How much time does the owner have to respond to selections or change orders?
• What happens if owner decisions are late?
• What records will be preserved for the project file?

If both spouses, a lender, a designer, or an owner’s rep are involved, make approval authority explicit.

9. Define substantial completion, final completion, and closeout

Do not wait until the end to learn what “done” means.

Your contract should address:

• Substantial completion.
• Certificate of occupancy or local inspection signoff.
• Punch-list process and deadlines.
• Final cleaning.
• Manuals and warranty documents.
• As-built records or final plans.
• Final lien waivers.
• Retainage release.
• Warranty start date.
• How unresolved items are handled after move-in.

The strongest closeout terms make final payment a clean handoff, not a negotiation after you have already lost leverage.

Quick contract red flags

Pause before signing if you see:

• Missing exhibits referenced in the agreement.
• Large allowances with no overage/underrun rules.
• Draws based only on dates or percentages.
• Broad exclusions outside the owner-responsibility list.
• Change orders allowed without written owner approval.
• No lien waiver process.
• No insurance exhibit.
• No schedule impact language.
• Final payment due before punch-list and closeout documentation.

Before you sign

Use this checklist to create a one-page question list for your builder, lender, attorney, and any other qualified professionals helping you. The questions are the product. If a contract is clear, the builder should be able to answer them without drama.

Request a Build Risk Audit if you want Hank to turn your contract package into an owner-side question list before you sign.

Hank provides educational project-management support and AI-assisted checklists. Hank is not a law firm, attorney, lender, inspector, or licensed contractor. This is not legal, financial, or construction advice. For project-specific advice, consult a qualified Utah construction attorney, lender, inspector, or licensed professional.