What Should Be in a Construction Contract?

Most homeowners and small business owners sign construction contracts without really reading them. Not because they’re careless. Because the documents are dense, the terminology is unfamiliar, and the contractor is standing right there with a pen. That’s exactly when mistakes happen.

This post kicks off a nine-part series on construction contract basics — written for people who hire contractors, not people who are contractors. No legal jargon. No fluff. Just what you need to know before you sign anything.

We’re starting with something that sounds obvious but is routinely done wrong: the project information section. It’s the foundation of your contract. And when it’s vague, the whole thing gets questionable fast.

What Is Project Information, Exactly?

Project information is the section of a construction contract that establishes the basics: what’s being built, where it is, who’s involved, and what documents define the work. Think of it as the contract’s cover page — except unlike a cover page, this one carries real legal weight.

A well-written project information section typically includes:

• The full legal names of both parties (you and the contractor)
• The project name and job number, if applicable
• The project address and legal description
• A reference to the drawings, plans, proposals, or specifications that define the scope
• The edition or date of any referenced documents

That last one — document dates — matters more than most people realize. We’ll get to the why as you continue reading.

A Real-World Example: When “The Plans” Aren’t Clear

A homeowner hired a contractor to build a 400 sq ft addition. The contract referenced “the architectural drawings” — but didn’t specify which version.

Midway through construction, a dispute erupted. The homeowner was working from revised drawings that added a second bathroom. The contractor was working from the original set. Both were right. Neither was protected.

The result: a $14,000 dispute over work that was — or wasn’t — in the contract, depending on which drawings you believed.

This isn’t a one-time horror story. It’s a Tuesday in construction. Document version control is one of the most common sources of disputes on residential and small commercial projects — and it’s entirely preventable with four words in your contract: date of the drawings.

Why This Section Protects You (Not Just the Contractor)

Contractors use the project information section to define what they’re responsible for building. That’s legitimate. But as the owner, this section is also your primary protection against scope creep, substitutions, and “that’s not what we agreed to” moments.

A clearly written project information section locks in the baseline. Any change to the scope after signing becomes a change order — a separate, written authorization for additional work. Without a solid baseline, it’s hard to define what’s “extra” and what was always part of the job.

For homeowners especially, this section answers the most important question on any project: what am I actually paying for?

What Good Looks Like:

Identify every document that defines the work

Plans, specifications, permits, soils reports, product submittals — if it describes what’s being built, it should be named in the contract with a date or revision number. Don’t let “per our proposal” do all the heavy lifting.

Use full legal names for both parties

Not “Mike’s Construction” — but whatever name appears on their contractor’s license and business registration. And be sure to identify the state the business is registered in. There could be a business with the same name in an number of states.

Also, not “the Smith family” — but the full legal name of the entity or individual signing. This matters if you ever need to enforce the contract.

Include the physical project address

Obvious? Yes. Omitted more often than you’d think. The address anchors the contract to a specific location and matters for permitting, lien filings, and any insurance claims tied to the project.

Nail down the document versions

“Drawings dated March 14, 2025, Permit Set” is a real reference. “The plans” is not. If your architect issues revised drawings mid-project, your contract should specify how those revisions get incorporated — and who authorizes them.

Red Flags to Watch For:

• The contract references “plans to be provided” without a date or description — the scope is undefined at signing
• No job address is listed — vague contracts are hard to enforce
• The contractor’s legal name doesn’t match their license — verify at the state licensing board where they registered
• Drawings or specs are described generically (“per our conversation”) rather than by document name and date
• No mention of how future plan revisions will be handled or authorized

The Takeaway

Project information sounds like administrative housekeeping. It’s not. It’s the section of your contract that defines reality — what gets built, based on what documents, at what address, by whom. When it’s vague, every dispute that follows gets harder to resolve.

Before you sign anything, read this section slowly. Make sure you can answer three questions:

• Do I know exactly which documents define this project?
• Are both parties identified by their full legal names?
• Is the project address and description specific enough to be unambiguous?

If you can’t answer yes to all three, ask for clarification before the pen touches paper.

Up next in the series: Who Should Sign a Construction Contract? The Authorized Signer Question Nobody Talks About. 

This post is part of the Before You Sign series — a nine-part guide to construction contracts for homeowners, startups, and small businesses. See the full series.