Free Template

Illinois Homeowner-Contractor Agreement

A plain-language contract template built around Illinois law — Home Repair and Remodeling Act compliance, mechanics' lien protections, and cancellation rights.

Illinois 815 ILCS 513 v1.0 — March 2026
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Instructions — not part of the agreement

How to Use This Template

This template was built by jaspector.com to help Illinois homeowners protect themselves when hiring a contractor. It covers the key provisions of Illinois law, including the Home Repair and Remodeling Act, mechanics' lien protections, and cancellation rights.

Before You Start

  1. Verify the contractor's credentials. Illinois does not have a statewide general contractor license. Check your municipality's building department for local licensing requirements. For regulated trades (plumbing, electrical, roofing), verify IDFPR credentials at idfpr.illinois.gov. See our Illinois license lookup guide for step-by-step help.
  2. Download and print this document. Fill in all blank fields -- do not leave any section empty. Illinois law requires a written contract for work over $1,000.
  3. Review the Legal Notes below. They highlight Illinois-specific legal protections. Read them carefully -- they explain your rights as a homeowner.
  4. Both parties sign. You and the contractor each get a signed copy before any work starts.
  5. Consult an attorney. This template is a starting point. For large projects or complex scopes, have an Illinois-licensed attorney review the agreement.

Field-by-Field Guide

  • ›Section 1 (Parties): Fill in the legal names exactly as they appear on official documents. Record the contractor's local license/registration number and issuing municipality, plus any IDFPR license number for regulated trades.
  • ›Section 2 (Scope): Be as specific as possible. "Kitchen remodel" is not enough -- list materials, dimensions, finishes, and what is excluded.
  • ›Section 3 (Payment): Illinois does not cap deposits by statute, but limit your down payment to no more than one-third of the contract price. Tie every payment to a completed milestone, not a calendar date.
  • ›Section 4 (Timeline): Get start and completion dates in writing. Fill in the delay penalties -- these protect you if the contractor falls behind.
  • ›Section 7 (Warranties): Fill in the warranty period. One year is common; negotiate for more on major work.
  • ›Section 13 (Exhibits): Attach all plans, specs, and the contractor's license/registration printout. Check each box for what you are including.

Illinois Legal Notes

  • ›Contractor Licensing (Section 1): Illinois does not have a statewide general contractor license. Many municipalities -- including Chicago, Naperville, and Aurora -- require local contractor licensing or registration. Regulated trades (plumbing, electrical, roofing) are licensed through the Illinois Department of Financial and Professional Regulation (IDFPR). Verify credentials at idfpr.illinois.gov for state-regulated trades, and check with your local building department for municipal requirements.
  • ›Permits (Section 2): The contractor should pull permits for work requiring them. In Chicago, contractors must hold a City of Chicago General Contractor License to pull permits. If a contractor asks the homeowner to pull the permit, that is a red flag -- it may indicate the contractor lacks required local credentials.
  • ›Payment Schedule (Section 3): The Home Repair and Remodeling Act (815 ILCS 513/20) requires that the contract include the total price and a payment schedule. Illinois does not impose a statutory cap on deposit amounts for general home improvement contracts. Best practice: limit the down payment to no more than one-third of the contract price and tie all subsequent payments to completed work milestones.
  • ›Change Orders (Section 5): Changes to the contract scope or price should be documented in writing. The Home Repair and Remodeling Act (815 ILCS 513/20) requires a written contract for work over $1,000 -- any material changes to that contract should also be in writing to be enforceable.
  • ›Workers' Compensation (Section 8): Illinois law (820 ILCS 305) requires all employers to carry workers' compensation insurance. If the contractor has any employees, they must maintain active workers' compensation coverage. Request a certificate of insurance and verify coverage is current before work begins.
  • ›Local Bonding (Section 8): Some Illinois municipalities require contractors to post a surety bond as a condition of local licensing. For example, Chicago requires a performance bond for certain project types. Check with your local building department for specific bonding requirements.
  • ›Right to Cancel (Section 9): If this contract was solicited and signed at the Homeowner's residence (a "home solicitation sale"), the Homeowner has the right to cancel within three (3) business days of signing without penalty, consistent with the federal FTC Cooling-Off Rule (16 CFR 429) and Illinois consumer protection law (815 ILCS 505; 815 ILCS 141). The Contractor must provide a written cancellation notice form at signing. Failure to provide this notice may extend the cancellation period and expose the Contractor to liability under the Illinois Consumer Fraud Act (815 ILCS 505/2). Required notice language: "You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction."
  • ›Dispute Resolution (Section 10): Homeowners may file a complaint with the Illinois Attorney General's office regarding contractor fraud, deceptive practices, or violations of the Home Repair and Remodeling Act. File at: illinoisattorneygeneral.gov/consumers. For Chicago projects, complaints may also be filed with the City of Chicago Department of Buildings.
  • ›Mechanics' Liens (Section 11): Illinois allows contractors, subcontractors, and material suppliers to place a mechanics' lien on your property if they are not paid (770 ILCS 60). A subcontractor must serve written notice on the homeowner within 60 days of first furnishing labor or materials to preserve lien rights (770 ILCS 60/24). A contractor's lien claim must be filed within 4 months after completion of the work (770 ILCS 60/7).
  • ›Sworn Statement of Account (Section 11): Before making a payment, the Homeowner may require the Contractor to provide a sworn statement listing all subcontractors and material suppliers and the amounts due or to become due to each (770 ILCS 60/5). This is a powerful tool under Illinois law to protect against hidden lien claims.
  • ›Home Repair and Remodeling Act (815 ILCS 513): Illinois law requires that home repair and remodeling contracts over $1,000 be in writing and include: the contractor's name, address, and license/registration number; a description of the work and materials; the total price and payment schedule; approximate start and completion dates; a statement of guarantees or warranties; a notice of the homeowner's right to cancel (if applicable); and the contractor's signature and date.
  • ›Chicago-Specific Requirements: If the project is in Chicago, the contractor must hold a City of Chicago General Contractor License (Municipal Code Title 4, Chapter 4-36). Verify at the City of Chicago Department of Buildings. Chicago requires permits for most structural, electrical, plumbing, and mechanical work. The contractor -- not the homeowner -- should pull all required City of Chicago permits.

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The instructions above are provided by jaspector.com as an educational resource. They are not part of the agreement, do not constitute legal advice, and do not create an attorney-client or endorsement relationship.

Before You Begin: This template helps you understand what a strong Illinois contractor agreement looks like. It is an educational starting point provided by jaspector.com — not a finished contract, and not legal advice. Illinois law imposes specific requirements on residential construction contracts, and local jurisdictions may add further obligations. Have this document reviewed by a Illinois-licensed attorney before use. Use of this template does not create an attorney-client relationship, and jaspector.com assumes no liability for any outcomes arising from its use.
1.

Parties

Homeowner (Property Owner)

Name(s)
Property Address
Mailing Address
Phone
Email

Contractor

Business Name (Legal Entity)
Local License/Registration Number
Issuing Municipality
IDFPR License Number (if applicable)
Business Address
Phone
Email
Workers' Compensation Policy #
General Liability Policy #
Illinois Note: Illinois does not have a statewide general contractor license. However, many municipalities – including Chicago, Naperville, Aurora, and others – require local contractor licensing or registration. Regulated trades (plumbing, electrical, roofing) are licensed through the Illinois Department of Financial and Professional Regulation (IDFPR). Verify your contractor's credentials at idfpr.illinois.gov for state-regulated trades, and check with your local building department for municipal licensing requirements.
2.

SCOPE OF WORK

2.1 Project Description

Describe the work in specific, measurable detail. Include materials, methods, dimensions, and reference any plans, drawings, or specifications attached as exhibits.

2.2 Work NOT Included

Explicitly list work that is excluded from this contract to prevent scope disputes.

2.3 Permits and Inspections

  • Contractor is responsible for obtaining all required building permits
  • Contractor is responsible for scheduling all required inspections
  • Permit costs are: [ ] Included in contract price / [ ] Billed separately at cost
    • Illinois Note: The contractor should pull permits for work requiring them. In Chicago, contractors must hold a City of Chicago General Contractor License to pull permits. If a contractor asks the homeowner to pull the permit, that is a red flag – it may indicate the contractor lacks the required local credentials.

    2.4 Plans and Specifications

  • Attached as Exhibit A (architectural/engineering plans)
  • Attached as Exhibit B (material specifications)
  • No formal plans – scope defined by Section 2.1 above
    • 3.

    CONTRACT PRICE AND PAYMENT SCHEDULE

    3.1 Total Contract Price

    Item Total Contract Price$ Sales Tax (if applicable)$ Permit Fees (if billed separately)$ Total Amount Due**$ **

    3.2 Payment Schedule

    Illinois Law (815 ILCS 513/20): The Home Repair and Remodeling Act requires that the contract include the total price and a payment schedule. Illinois does not impose a statutory cap on deposit amounts for general home improvement contracts. However, it is a best practice to limit the down payment to no more than one-third of the contract price and to tie all subsequent payments to completed work milestones.
    Payment Down Payment$ Progress Payment 1$ Progress Payment 2$ Progress Payment 3$ Final Payment$ Total**$ **

    3.3 Payment Terms

  • ›Payments are due within ___ days of written invoice
  • ›Acceptable payment methods: ________________________________
  • ›No payment shall be due for work not yet performed or materials not yet delivered to the job site
  • ›Final payment is due only after: (a) all work is complete, (b) final inspection is passed (if applicable), and (c) Homeowner has had reasonable opportunity to inspect
    • 4.

    PROJECT TIMELINE

    Milestone Estimated Start Date Estimated Completion Date

    4.1 Delays

  • ›Contractor shall notify Homeowner in writing within 48 hours of any event that may delay the project
  • ›Excusable delays include: weather, permit delays, material shortages, acts of God, government orders
  • ›Non-excusable delays exceeding ___ business days entitle Homeowner to a daily credit of $ _________ (liquidated damages), not to exceed _____% of the total contract price
  • ›If the project is not substantially complete within ___ days of the estimated completion date (excluding excusable delays), Homeowner may terminate this contract under Section 9
    • 5.

    CHANGE ORDERS

    Any changes to the scope, price, or timeline of this contract must be documented in a written Change Order signed by both parties before the changed work begins.

    Each Change Order shall include:

  • Description of the changed work
  • Addition to or deduction from the contract price
  • Impact on the project timeline
  • Signature of both Homeowner and Contractor
    • Illinois Requirement (815 ILCS 513/20): Changes to the contract scope or price should be documented in writing. The Home Repair and Remodeling Act requires a written contract for work over $1,000 – any material changes to that contract should also be in writing to be enforceable.

    No verbal agreements will modify this contract.

    6.

    MATERIALS AND WORKMANSHIP

    6.1 Materials

  • ›All materials shall be new unless otherwise specified in writing
  • ›Specific materials, brands, and grades are listed in: [ ] Section 2.1 / [ ] Exhibit B
  • ›Substitutions require prior written approval from Homeowner
  • ›Contractor warrants that all materials comply with applicable building codes

    • 6.2 Workmanship Standards

  • ›All work shall be performed in a professional, workmanlike manner
  • ›All work shall comply with applicable Illinois building codes and local ordinances
  • ›All work shall conform to the plans, specifications, and scope described in this contract
  • ›Contractor shall maintain a clean and safe job site

    • 6.3 Subcontractors

  • ›Contractor [ ] will / [ ] will not use subcontractors
  • ›If subcontractors are used, Contractor remains fully responsible for their work, licensing, and insurance
  • ›All subcontractors performing work that requires an IDFPR license or local license must hold a valid, active credential
  • ›Homeowner may request license or registration numbers for any subcontractor working on the project
    • 7.

    WARRANTIES

    7.1 Contractor Warranty

    Contractor warrants all labor and workmanship for a period of ___ year(s) from the date of completion. During this period, Contractor shall repair or correct, at Contractor's expense, any defects in workmanship or materials furnished by Contractor.

    7.2 Manufacturer Warranties

    Contractor shall provide Homeowner with all manufacturer warranties for materials and equipment installed. Contractor shall ensure installations comply with manufacturer specifications to preserve warranty coverage.

    7.3 Warranty Exclusions

    This warranty does not cover:

  • ›Normal wear and tear
  • ›Damage caused by Homeowner negligence or misuse
  • ›Damage caused by third parties or acts of God
  • ›Items specifically excluded in writing
    • 8.

    INSURANCE AND BONDING

    8.1 Contractor Insurance Requirements

    Contractor shall maintain, at minimum, the following coverage for the duration of the project:

    Coverage General Liability$ Workers' Compensation Automobile Liability (if applicable)$
  • ›Contractor shall provide certificates of insurance upon request
  • ›Homeowner shall be named as additional insured on the general liability policy

    • 8.2 Workers' Compensation

    Illinois Requirement (820 ILCS 305): Illinois law requires all employers to carry workers' compensation insurance. If the contractor has any employees, they must maintain active workers' compensation coverage. Request a certificate of insurance and verify coverage is current before work begins.

    8.3 Local Bonding Requirements

    Illinois Note: Some Illinois municipalities require contractors to post a surety bond as a condition of local licensing. For example, Chicago requires a performance bond for certain project types. Check with your local building department for specific bonding requirements that may apply to your contractor.
    9.

    TERMINATION

    9.1 Homeowner's Right to Terminate

    Homeowner may terminate this contract at any time by providing written notice to Contractor. Upon termination:

  • ›Homeowner shall pay for all work satisfactorily completed and materials delivered to the job site as of the termination date
  • ›Contractor shall provide an itemized accounting of all work completed and materials delivered within 10 business days of termination
  • ›Contractor shall not charge a cancellation penalty exceeding the actual costs reasonably incurred

    • 9.2 Contractor's Right to Terminate

    Contractor may terminate this contract if:

  • ›Homeowner fails to make a payment due under this contract within ___ days of written notice of default
  • ›Conditions at the job site make the work unsafe or illegal to continue

    • 9.3 Right to Cancel

    Illinois Law (815 ILCS 505; Illinois Door-to-Door Sales Act, 815 ILCS 141): If this contract was solicited and signed at the Homeowner's residence (a "home solicitation sale"), the Homeowner has the right to cancel within three (3) business days of signing without penalty, consistent with the federal FTC Cooling-Off Rule (16 CFR 429) and Illinois consumer protection law. The Contractor must provide a written cancellation notice form at the time of signing. Failure to provide this notice may extend the cancellation period and expose the Contractor to liability under the Illinois Consumer Fraud Act (815 ILCS 505/2).
    10.

    DISPUTE RESOLUTION

    10.1 Informal Resolution

    The parties agree to attempt informal resolution of any dispute by written notice describing the issue. The other party shall respond in writing within 15 business days.

    10.2 Mediation

    If informal resolution fails, the parties agree to submit the dispute to non-binding mediation before a mutually agreed mediator. Mediation costs shall be shared equally.

    10.3 Illinois Attorney General Complaint

    Illinois Resource: Homeowners may file a complaint with the Illinois Attorney General's office regarding contractor fraud, deceptive practices, or violations of the Home Repair and Remodeling Act. File at: illinoisattorneygeneral.gov/consumers. For Chicago projects, complaints may also be filed with the City of Chicago Department of Buildings.

    10.4 Legal Action

    If mediation fails, either party may pursue legal action in the county where the property is located. The prevailing party shall be entitled to recover reasonable attorney's fees and costs. Illinois small claims court handles cases up to $10,000.

    11.

    MECHANICS' LIEN NOTICE

    Illinois Law (770 ILCS 60, the Illinois Mechanics Lien Act): Illinois allows contractors, subcontractors, and material suppliers to place a mechanics' lien on your property if they are not paid for work or materials. This lien can affect your ability to sell or refinance.

    11.1 Protecting Against Mechanics' Liens

  • ›Request lien waivers from the contractor and all subcontractors with each progress payment
  • ›Request a final lien waiver from all parties upon final payment
  • ›Under the Illinois Mechanics Lien Act, a subcontractor must serve a written notice on the homeowner within 60 days of first furnishing labor or materials to preserve lien rights (770 ILCS 60/24)
  • ›Consider requiring Contractor to provide a list of all subcontractors and material suppliers at the start of the project
  • ›A contractor's lien claim must be filed within 4 months after completion of the work (770 ILCS 60/7)

    • 11.2 Sworn Statement of Account

    Illinois Protection (770 ILCS 60/5): Before making a payment, the Homeowner may require the Contractor to provide a sworn statement listing all subcontractors and material suppliers and the amounts due or to become due to each. This is a powerful tool under Illinois law to protect against hidden lien claims. The Contractor is obligated to provide this statement upon request.
    12.

    ADDITIONAL ILLINOIS REQUIREMENTS

    12.1 Contract Requirements Under the Home Repair and Remodeling Act (815 ILCS 513)

    Illinois law requires that home repair and remodeling contracts over $1,000 be in writing and include:

  • The contractor's name, business address, and any license or registration number
  • A description of the work to be performed and materials to be used
  • The total price and a payment schedule
  • The approximate start and completion dates
  • A statement of any guarantees or warranties
  • A notice of the homeowner's right to cancel (if applicable)
  • The contractor's signature and the date

    • 12.2 Required Consumer Rights Notice

    "You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction." – Required notice for home solicitation sales under Illinois law (815 ILCS 141/2)

    12.3 Home Repair and Remodeling Act Disclosure

    Under the Home Repair and Remodeling Act (815 ILCS 513/15), any person engaged in the business of home repair and remodeling must provide the homeowner with a written contract for any work exceeding $1,000 and must not make any material misrepresentation regarding the services to be performed.

    12.4 Chicago-Specific Requirements

    Chicago Municipal Code (Title 4, Chapter 4-36): If the project is located in Chicago, the contractor must hold a City of Chicago General Contractor License. Verify at the City of Chicago Department of Buildings. Chicago also requires permits for most structural, electrical, plumbing, and mechanical work. The contractor – not the homeowner – should pull all required City of Chicago permits.
    13.

    GENERAL PROVISIONS

    13.1 Entire Agreement

    This contract, including all exhibits and change orders, constitutes the entire agreement between the parties. No prior verbal or written representations shall be binding unless incorporated herein.

    13.2 Severability

    If any provision of this contract is found unenforceable, the remaining provisions shall continue in full force and effect.

    13.3 Governing Law

    This contract shall be governed by the laws of the State of Illinois.

    13.4 Notice

    All notices under this contract shall be in writing and delivered to the addresses listed in Section 1, by personal delivery, certified mail, or email with confirmed receipt.

    13.5 Assignment

    Neither party may assign this contract without the prior written consent of the other party.

    14.

    EXHIBITS AND ATTACHMENTS

  • Exhibit A: Plans and Drawings
  • Exhibit B: Material Specifications
  • Exhibit C: Notice of Right to Cancel (if applicable)
  • Exhibit D: Contractor's License/Registration Printout
  • Exhibit E: Certificates of Insurance
  • Exhibit F: Sworn Statement of Account (template)
  • Additional: _________________________________

    • Signatures

    By signing below, both parties acknowledge that they have read, understand, and agree to all terms of this contract.

    Homeowner

    Signature

    Printed Name
    Date

    Homeowner (if jointly owned)

    Signature

    Printed Name
    Date

    Contractor

    Signature

    Printed Name
    Title
    License/Registration #
    Date

    Illinois Pre-Signing Checklist

    Before signing, confirm each item:

    • Verified contractor's local license or registration with your municipality's building department
    • Verified IDFPR credentials for regulated trades (plumbing, electrical, roofing) at idfpr.illinois.gov
    • Workers' compensation insurance confirmed (required if contractor has employees)
    • General liability insurance confirmed
    • Checked local bonding requirements with your municipal building department
    • Contract is in writing (required for work over $1,000 under 815 ILCS 513)
    • Right to cancel notice provided (if contract was signed at your home)
    • All blank fields in this contract are filled in – no blank spaces
    • Received a signed copy of the complete contract before work starts
    • Payment schedule tied to work milestones, not calendar dates
    • Plans, specs, and material lists are attached or described in detail
    • For Chicago projects: verified City of Chicago General Contractor License

    Next step

    Verify your contractor's Illinois credentials

    Look up IDFPR trade licenses, local registration, and complaint history before you sign.

    Illinois License Lookup

    This template was prepared by jaspector.com as an educational resource for Illinois homeowners.

    It is not legal advice. Consult a Illinois-licensed attorney before executing any construction contract.

    Template Version 1.0 — March 2026

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