South Dakota Homeowner-Contractor Agreement

Instructions — not part of the agreement

How to Use This Template

This template was built by jaspector.com to help South Dakota homeowners protect themselves when hiring a contractor. It covers the key provisions relevant to South Dakota law, including local licensing requirements, DLR trade licenses, and mechanics' lien protections.

Before You Start

1. Verify the contractor's credentials. South Dakota does not have a single statewide general contractor license. Check your local building department for registration requirements. For trade work (electrical, plumbing, HVAC), verify DLR trade licenses at dlr.sd.gov. See our South Dakota contractor verification guide for step-by-step help.
2. Download and print this document. Fill in all blank fields — do not leave any section empty.
3. Review each South Dakota callout. These notes highlight state-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 a South Dakota-licensed attorney review the agreement.

Field-by-Field Guide

• ›Section 1 (Parties): Fill in legal names exactly as they appear on official documents. Include applicable local license, DLR trade license, and Secretary of State registration numbers.
• ›Section 2 (Scope): Be as specific as possible. "Kitchen remodel" is not enough — list materials, dimensions, finishes, and what is excluded.
• ›Section 3 (Payment): South Dakota does not impose a statutory cap on down payments. Limit the down payment to no more than 1/3 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 14 (Exhibits): Attach all plans, specs, and the contractor's local license or DLR trade license printout. Check each box for what you are including.

About Jaspector

Jaspector is an AI-powered property advisory service that helps homeowners navigate construction projects, verify contractors, and resolve disputes. If a dispute arises during your project, we can help you document the issue and build a resolution strategy.

Learn more at jaspector.com — or email hi@jaspector.com to get started.

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.

Homeowner (Property Owner)

Contractor

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 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

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

3.1 Total Contract Price

3.2 Payment Schedule

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

4.1 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 $
• ›If the project is not substantially complete within days of the estimated completion date (excluding excusable delays), Homeowner may terminate under Section 9

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:

1. Description of the changed work
2. Addition to or deduction from the contract price
3. Impact on the project timeline
4. Signature of both Homeowner and Contractor

No verbal agreements will modify this contract.

6.1 Materials

• ›All materials shall be new unless otherwise specified in writing
• ›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 South Dakota 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 use subcontractors (will / will not)
• ›If subcontractors are used, Contractor remains fully responsible for their work, licensing, and insurance
• ›All subcontractors performing trade work (electrical, plumbing, HVAC) must hold valid, active DLR trade licenses
• ›Homeowner may request license numbers and insurance certificates for any subcontractor working on the project

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

• ›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

8.1 Contractor Insurance Requirements

• ›Contractor shall provide certificates of insurance upon request
• ›Homeowner shall be named as additional insured on the general liability policy

9.1 Homeowner's Right to Terminate

• ›Homeowner may terminate this contract at any time by providing written notice
• ›Homeowner shall pay for all work satisfactorily completed and materials delivered as of the termination date
• ›Contractor shall provide an itemized accounting within 10 business days of termination
• ›Contractor shall not charge a cancellation penalty exceeding actual costs reasonably incurred

9.2 Contractor's Right to Terminate

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

10.1 Informal Resolution

The parties agree to attempt informal resolution by written notice. 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 Legal Action

If mediation fails, either party may pursue legal action in the circuit court of the county where the property is located. South Dakota Small Claims Court handles claims up to $12,000 (SDCL 15-39).

11.1 Protecting Against Mechanics' Liens

• ›Request lien waivers from the Contractor and all known subcontractors with each progress payment
• ›Request a final unconditional lien waiver from the Contractor and all known subcontractors and suppliers upon final payment
• ›Require Contractor to provide a list of all subcontractors and material suppliers at the start of the project
• ›Request proof that progress payments are being forwarded to subcontractors and suppliers

11.2 Preliminary Notice

South Dakota subcontractors and material suppliers who do not have a direct contract with the homeowner may serve written notice to preserve their lien rights. If you receive such a notice, do not ignore it — it means that party is preserving their right to file a lien if they are not paid.

12.1 Contractor Compliance Checklist

South Dakota has no single statewide home improvement contract statute. However, consumer protection law (SDCL Ch. 37-24) requires accurate, complete contracts. Confirm this contract includes:

• Contractor's full legal name, business address, and applicable license or registration numbers
• A detailed description of the work to be performed
• Total contract price and payment schedule
• Estimated start and completion dates
• Notice of Cancellation form provided (if contract was solicited at Homeowner's residence)
• No blank sections left unfilled at the time of signing

12.2 Contractor License Statement

Contractor represents and warrants that, as of the date of this contract, Contractor holds all licenses, registrations, and permits required by applicable South Dakota law and by the local jurisdiction where the property is located, and agrees to maintain them in good standing throughout the duration of this project.

12.3 Workers' Compensation Statement

South Dakota law (SDCL Title 62) requires contractors with employees to carry workers' compensation insurance through a private insurer. Contractor represents that valid workers' compensation coverage is in place and will remain in place for all employees throughout the project.

• ›Entire Agreement: This contract, including all exhibits and change orders, constitutes the entire agreement. No prior verbal or written representations shall be binding unless incorporated herein.
• ›Severability: If any provision is found unenforceable, the remaining provisions continue in full force.
• ›Governing Law: This contract shall be governed by the laws of the State of South Dakota.
• ›Notice: All notices shall be in writing and delivered to the addresses in Section 1, by personal delivery, certified mail, or email with confirmed receipt.
• ›Assignment: Neither party may assign this contract without prior written consent of the other party.

• Exhibit A: Plans and Drawings
• Exhibit B: Material Specifications
• Exhibit C: Notice of Cancellation Form (if Home Solicitation Sales Act applies)
• Exhibit D: Contractor's Local License / DLR Trade License Printout
• Exhibit E: Certificates of Insurance
• Additional:

Signatures

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