Contractor Identification and Licensing
Verify the contractor's legal identity, licensing, and insurance before reviewing the scope of work.
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Confirm the contract includes the contractor's full legal business name and address
The business name on the contract should match the name on their state contractor license. If they're operating under a DBA (doing business as), both the DBA and the legal entity name should appear. A PO Box alone — with no physical address — is a red flag.
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Verify contractor license number is listed and valid
The contract should include the contractor's state or local license number. Look it up on your state's contractor licensing board website to confirm it's active, not expired or suspended. Some states also show complaint history and disciplinary actions.
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Confirm insurance certificate is attached or referenced — liability and workers' comp
The contract should reference or attach a Certificate of Insurance showing general liability (minimum $1 million) and workers' compensation coverage. Call the insurance company to confirm the policy is current. Without these, you're liable for injuries or damage on your property.
Scope of Work
The scope section defines exactly what work is included. Vague scope language is the #1 source of roofing contract disputes.
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Materials are specified by brand, product line, and color
The contract should name the exact materials: e.g., 'GAF Timberline HDZ, Charcoal, 24 squares' — not just 'architectural shingles.' Without specifics, the contractor can substitute cheaper products. Also verify underlayment type, flashing material, and ridge vent brand are specified.
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Tear-off scope is defined — number of layers, what's included
The contract should state how many layers of existing roofing will be removed (e.g., 'tear-off of one layer of asphalt shingles to bare deck'). It should also include disposal and cleanup. If the contract says 'overlay' or 're-roof over existing,' understand that this means NO tear-off and the deck won't be inspected.
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Decking repair price per sheet is specified as a contingency
Damaged decking is found during tear-off when the old roofing is removed. The contract should specify the per-sheet price for plywood replacement (typically $75–$150 per 4×8 sheet installed). Without this clause, you may face uncontrolled costs after the roof is already open.
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Flashing, drip edge, and ventilation work are explicitly listed
These components are easy to omit from a low bid. The contract should specify: new drip edge (material type), flashing at all penetrations and transitions, and any ventilation additions (ridge vent, soffit vents). If a component isn't listed, it's not included.
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Ice-and-water shield application areas are defined (cold climates)
In regions with freeze-thaw cycles, building codes require ice-and-water shield membrane at the eaves, valleys, and around penetrations. The contract should specify where this membrane will be installed. In warm climates, this may not be required but is still recommended in valleys.
Payment Terms
Payment structure determines your leverage throughout the project. The wrong terms can leave you overpaying for incomplete work.
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Deposit does not exceed 30% (or your state's legal cap)
Standard deposits are 10–30% of the total contract. Some states legally cap the deposit amount (e.g., California limits to 10% or $1,000). Never pay more than 30% before work begins. Larger deposits remove your leverage if the work quality is poor.
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Final payment is due upon completion and your inspection — not before
The contract should state that final payment is due after the work passes your inspection or a specified period after completion. You should have the opportunity to walk the roof with the foreman (or inspect from the ground with binoculars) before releasing final payment.
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Payment method is documented — avoid cash without receipts
Pay by check, credit card, or bank transfer for a paper trail. If paying cash, require a written receipt for each payment. Documented payments protect you in disputes and are required for insurance claims and tax purposes.
Warranties
Two separate warranties protect your roof. Both should be clearly defined in the contract.
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Manufacturer material warranty terms are specified
The contract should identify the shingle manufacturer's warranty (e.g., 'GAF 30-year limited warranty' or 'Owens Corning Preferred Protection'). Some warranties require a certified installer for full coverage. Verify that your contractor's certification level qualifies for the warranty tier described.
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Workmanship warranty duration and coverage are written out
The contractor's workmanship warranty covers installation errors. Look for: duration (5–10 years is standard; under 2 years is a red flag), what's covered (leaks from installation defects), what's excluded (acts of God, homeowner modifications), and whether it's transferable to a new owner if you sell.
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Warranty start date and claim process are defined
The warranty should start on the completion date, not the contract date. The claim process should be clear: who to contact, response time expectations, and what constitutes a valid claim. A warranty without a clear process is difficult to enforce.
Timeline and Logistics
Realistic timelines and clear logistics prevent mid-project surprises.
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Estimated start date and project duration are stated
The contract should include an estimated start date (or start window) and expected duration (typically 1–3 days for most homes). If the start date is vague ('will schedule in the next few weeks'), ask for a specific window. Open-ended scheduling lets contractors deprioritize your job.
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Weather delay policy is addressed
What happens if rain delays the project? Does the crew return the next clear day? Is there a cost for extended timeline? How is the exposed deck protected overnight? These questions should be answered in the contract or discussed and documented before signing.
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Cleanup and debris disposal are included
The contract should include daily cleanup, final magnetic nail sweep of the yard and driveway, and debris hauling and disposal. If dumpster placement requires a street permit, the contract should specify who obtains and pays for it.
Red Flags to Watch For
Any of these in a roofing contract should make you reconsider before signing.
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Check for 'escalation clauses' that allow unlimited price increases
Some contracts include clauses that let the contractor increase the price for 'unforeseen conditions' without a cap. An acceptable version: 'Decking replacement at $100/sheet if needed.' An unacceptable version: 'Price may increase based on conditions found during tear-off.' Without a cap, you have no cost control.
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Look for lien waiver language — your protection against subcontractor claims
If the contractor doesn't pay their suppliers or subcontractors, those parties can file a mechanic's lien against YOUR property. The contract should include a clause requiring the contractor to provide lien waivers from all subs and suppliers upon final payment. This protects you from third-party claims.
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Verify there's no mandatory arbitration clause that limits your legal options
Some contracts include binding arbitration clauses that prevent you from suing in court if a dispute arises. Arbitration can favor the contractor (who is a repeat participant). If present, consider negotiating this clause out or at least understanding what you're agreeing to.
Pro Tips
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Have the contractor walk through the contract with you
Ask the contractor to explain every line item and answer your questions before you sign. A professional contractor will be patient and thorough — they want informed customers who won't have unrealistic expectations. If a contractor rushes you through the contract or dismisses your questions, that's a major red flag.
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Take photos of the contract and all attachments
Photograph or scan every page of the signed contract, including material specifications, insurance certificates, and warranty documents. Store digital copies in cloud storage. Paper copies get lost; digital copies survive.
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Check your state's 3-day right to cancel
Most states give homeowners a 3-business-day right to cancel contracts signed at home (the FTC Cooling-Off Rule). If you sign under pressure and have second thoughts, you likely have a legal window to cancel without penalty. The contract should disclose this right.
Common Mistakes to Avoid
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Signing without reading the fine print on change orders
Change order clauses determine how mid-project modifications are priced and approved. Look for language requiring YOUR written approval before any change order is executed. Without this, the contractor can add work and charges without your explicit consent.
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Assuming the cheapest bid includes the same scope
Low bids often omit expensive items: ice-and-water shield, new drip edge, soffit ventilation, or upgraded underlayment. Compare bids line-by-line before signing. The cheapest total often becomes the most expensive when you add back the missing components.
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Not verifying that the contract matches the verbal proposal
Verbal promises about materials, timeline, or included work mean nothing if they're not in the written contract. If the sales rep said 'we'll replace any damaged fascia boards at no charge,' that needs to appear in writing. If it's not in the contract, it doesn't exist.
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Signing a contract from a door-to-door storm chaser
After major storms, out-of-town contractors go door-to-door offering fast repairs. Many collect deposits and disappear, do substandard work, or file inflated insurance claims in your name. Always verify licensing, insurance, and local business history before signing with anyone — especially someone who showed up uninvited.