Free MHIC Training

How should you respond when a client redlines your contract?

Short answer. Negotiate rather than refuse. Accept the reasonable changes and counter the one-sided ones, such as delay penalties with no exceptions for weather, supply problems, or change orders. Refusing to negotiate loses good clients.

Work it through

You're the contractor. Pick what you'd do, then see how each choice plays out.

Patricia Huang

Corporate attorney who applies legal precision to everything, including her home renovation

Patricia Huang wants a $65,000 kitchen renovation. She's an attorney and she's brought her own redlined version of your standard contract.

Her modifications include: a liquidated damages clause for delays ($500/day), a requirement that you carry $1M liability insurance (yours is the MHIC minimum $50,000), and a clause requiring all disputes be resolved in her county's circuit court.

  1. Correct

    A client who redlines your contract is a client who takes the project seriously. $500/day liquidated damages is high but negotiable — offer $200/day with documented exceptions for weather, supply chain, and change orders. The $1M insurance ask is reasonable for a $65K project — consider upgrading your coverage (it's not that expensive and makes you competitive for larger jobs). Treating her modifications as a negotiation rather than an insult builds massive trust.

  2. Terrible

    You just lost a $65,000 job and a client who would have been your most organized, well-documented, prompt-paying customer. Patricia doesn't modify contracts to be difficult — she does it because she understands risk. A contractor who refuses to negotiate terms on a $65K project signals either arrogance or something to hide. She'll find someone who takes the job seriously.

  3. Pushover

    Accepting $500/day in delay penalties without weather exceptions means one week of rain costs you $3,500. Patricia is negotiating for her interests — you need to negotiate for yours. That's not adversarial, it's professional. She'll actually respect you MORE for pushing back on unreasonable terms. A lawyer who sees a contractor accept one-sided terms wonders what else they're not paying attention to.

All 19 home improvement contracts questions

  1. Is a handshake deal legal for home improvement work in Maryland?
  2. What must a Maryland home improvement contract include?
  3. Which MHIC notice must every home improvement contract include?
  4. What if a signed contract is missing the completion date?
  5. Can a Maryland home improvement contract require arbitration?
  6. What happens in a scope dispute when nothing is in writing?
  7. Does a small cash side job need a written contract?
  8. Does a $2,000 job need a written home improvement contract?
  9. Can you start emergency repairs before signing a contract?
  10. Should you give a homeowner a ballpark or a written estimate?
  11. How do you fix a vague scope of work before it becomes a dispute?
  12. How should you respond when a client redlines your contract?
  13. How should a contract handle upgrades during the project?
  14. How do you price a contract for work that starts months later?
  15. Should a multi-year renovation be one contract or several?
  16. Can you sign a home improvement contract with a 17-year-old?
  17. What happens when a homeowner fires you partway through a job?
  18. Can you substitute materials named in the contract?
  19. How should you handle materials the homeowner supplies?