How to Make Your Contractor Agreement Rock Solid in New York and New Jersey

Contractors in New York and New Jersey face constant risks: non-payment, scope creep, lawsuits, and liability disputes. A well-drafted contract isn’t just paperwork — it’s your first line of defense. Here’s how to make your contractor agreement enforceable, protective, and litigation-resistant.

1. Clearly Define the Scope of Work

Most disputes arise because the work wasn't clearly outlined. Use plain language to define:

• Exactly what services will be performed
• Materials and equipment to be supplied
• Project milestones and timelines
• Permitting responsibilities

Attach plans, blueprints, or exhibits where appropriate. Ambiguity opens the door to lawsuits.

2. Include a Payment Schedule That Matches the Work

Avoid vague payment terms. Use a clear schedule tied to progress milestones (e.g., 25% upon demo, 25% after rough-ins, etc.). In New York and New Jersey, courts scrutinize payment terms when determining whether a contractor has met their obligations.

3. Require Written Change Orders

Verbal changes are risky. Include a clause stating that no additional work will be performed without a written and signed change order. This protects against scope creep and unpaid extras.

4. Add a Dispute Resolution Clause

Litigation can be expensive and slow. Consider adding a clause that:

• Requires mediation before litigation
• Designates a specific county and court (e.g., Nassau County Supreme Court)
• Authorizes recovery of legal fees if you prevail

5. Address Insurance and Risk Allocation

Specify who is responsible for liability, property damage, and worker injury. Include indemnification provisions and require the contractor to maintain appropriate general liability and workers' comp insurance, naming the client as an additional insured.

6. Make It Compliant With NY and NJ Law

New York and New Jersey have strict laws on home improvement contracts, commercial construction, mechanic’s liens, and consumer protections. A generic or online contract may leave you unprotected — have your agreements reviewed or drafted by a local construction attorney.

7. Don’t Forget the Boilerplate

Often overlooked, these standard clauses can determine the outcome of a legal dispute. Include:

• Entire Agreement clause
• Force Majeure clause
• No Waiver clause
• Assignment limitations

Bonus Tip: Put It in Writing — Every Time

Never rely on handshake deals or "understandings." A written, signed agreement is not just good practice — it's legally required for many jobs in both NY and NJ, especially for home improvement and projects over $500.

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Need Help Drafting or Reviewing a Contractor Agreement?

At JDE Law Firm, PLLC, we help contractors and business owners avoid disputes before they start. Whether you're in New York or New Jersey, we can draft, revise, or enforce a contract that protects your rights and prevents litigation.

Call us today: NY – 718-966-0877 | NJ – 732-490-7120
Or visit www.jdelaw.nyc

My Business is to Protect Your Business.