Should a multi-year renovation be one contract or several?
Short answer. Several. A separate contract for each phase keeps pricing, scope, and code requirements current, while one multi-year contract locks in terms that will almost certainly change. A non-binding letter of intent can cover the overall plan.
Work it through
You're the contractor. Pick what you'd do, then see how each choice plays out.
A client wants a comprehensive home renovation: kitchen (Year 1), bathrooms (Year 2), and basement finish (Year 3). Total estimated value: $120,000.
"Can we sign one big contract for everything now?"
- Correct
A 3-year contract locks in pricing, scope, and code requirements that will almost certainly change. Lumber prices, labor rates, building codes, and even the client's preferences will evolve. Separate phase contracts protect both parties: the client gets current-market pricing and can adjust scope per phase, and you're not locked into 2024 prices for 2027 work. You can sign a non-binding letter of intent for the overall project while executing binding contracts per phase.
- Possible but complex
A master contract with phase execution is legally workable but creates complexity: escalation calculations, scope change management across years, insurance and bonding requirements that may change, and building code updates that affect later phases. If you go this route, each phase should still require a written activation notice with confirmed pricing and scope. Simple is better — separate contracts, one per phase.
All 19 home improvement contracts questions
- Is a handshake deal legal for home improvement work in Maryland?
- What must a Maryland home improvement contract include?
- Which MHIC notice must every home improvement contract include?
- What if a signed contract is missing the completion date?
- Can a Maryland home improvement contract require arbitration?
- What happens in a scope dispute when nothing is in writing?
- Does a small cash side job need a written contract?
- Does a $2,000 job need a written home improvement contract?
- Can you start emergency repairs before signing a contract?
- Should you give a homeowner a ballpark or a written estimate?
- How do you fix a vague scope of work before it becomes a dispute?
- How should you respond when a client redlines your contract?
- How should a contract handle upgrades during the project?
- How do you price a contract for work that starts months later?
- Should a multi-year renovation be one contract or several?
- Can you sign a home improvement contract with a 17-year-old?
- What happens when a homeowner fires you partway through a job?
- Can you substitute materials named in the contract?
- How should you handle materials the homeowner supplies?