What Should a Siding Contract Include? Deposits, Permits, Change Orders

What has to be on a siding contract?

Three bids are on the table and one is about to become a contract. Massachusetts has already decided much of what that paper must say. Under the state’s Home Improvement Contractor law, any job over $1,000 needs a written contract, and the current requirements are spelled out on mass.gov. A siding contract that meets them carries:

• The contractor’s HIC registration number and business address. That number is how you confirm the company is registered, and it’s the first thing to check when you’re verifying a siding contractor’s license and insurance.
• One total price and a full written description of the work: which walls, tear-off or not, the water-resistive barrier and flashing, trim, soffit, and fascia, and the materials by brand and product line. A total plus a real scope is what lets you compare quotes; a line-item split of materials and labor isn’t required and tells you less than it seems.
• Start and completion dates, or a window for each.
• The payment schedule: deposit, any progress payment, and the final amount due on completion.
• Your right to cancel. If you sign anywhere other than the contractor’s place of business, it must state your three-business-day right to cancel.
• Who pulls the permit and a notice about the Guaranty Fund, which we’ll get to below.

Our guide to how to read a siding estimate covers the scope side; this covers the traps.

What each warranty covers, and what the workmanship warranty adds, is in siding warranties compared.

How big a deposit is normal, and what’s a flag?

Massachusetts caps it. A deposit taken before work begins cannot exceed one-third of the total contract price. The one exception is special-order material that has to be bought in advance to meet the schedule; in that case the actual cost of that material sets the limit, and the contract should say so.

A request for half the money before a panel comes off the house isn’t a negotiating style; it’s outside the rule and one of the clearest signs to slow down. The same instinct applies to a bid that’s far below the others; our article on whether to hire the cheapest siding bid walks through what a low number usually leaves out.

Do you need a permit for siding, and who should pull it?

A full siding replacement in Massachusetts generally requires a building permit from your town’s building department. The state building code exempts “ordinary repairs,” but that exemption is narrow and covers minor maintenance, not stripping a house and re-siding it. Confirm with your town; a registered contractor who works there already knows.

Who pulls it matters more than most homeowners realize. Under the Home Improvement Contractor law, a homeowner who secures their own building permit is excluded from the state’s Guaranty Fund. That fund exists to compensate homeowners for losses when a registered contractor’s work is found, by an arbitrator or a court, to be poor or unworkmanlike. Let the contractor pull it and you keep that protection; pull it yourself and you give it up. A contractor who asks you to pull it usually can’t, because they aren’t registered.

The permit also brings an inspection. On a siding job the inspector mainly looks at what’s under the new panels: the water-resistive barrier, the flashing at windows and doors, and any replaced sheathing. A second set of eyes on the details that keep the wall dry.

What is a change order, and when is one fair?

A change order is a written amendment to the contract that adds or removes work and adjusts the price. On siding, the honest reason for one is what the old siding was hiding: rotted sheathing, a window flashed wrong years ago, framing that stayed wet. No one can see that from the driveway, so even a careful estimate can move once the wall is open. Our article on the hidden costs of a siding project covers what tends to surface.

What makes a change order fair is the process, and a good contract spells it out before the job starts. The crew stops, shows you the problem, and puts three things in writing: what was found, what the repair involves, and what it adds to the total. You sign before the extra work begins. Nothing changes the price without your signature, and a contractor who folds an addition into the final invoice has skipped the part that protects you. Some contracts carry an allowance for likely repairs; either way, ask how surprises are handled.

What about warranties, final payment, and the walk-through?

Two warranties belong in the contract, by name and with terms. The product warranty comes from the manufacturer and covers defects in the siding itself. The workmanship warranty comes from the contractor and covers the install: flashing, fastening, the details that keep water out. Manufacturer coverage generally depends on installation to spec, so the two are linked, and a verbal workmanship warranty isn’t one. Our guide covers what an estimate should say about warranties.

Final payment should be tied to completion, and completion means a walk-through: you and the contractor go around the house, note anything that needs attention, and the punch list gets done before the last check clears. Ask for a lien waiver on final payment; it confirms suppliers and subcontractors have been paid and can’t place a claim on your home. Our article on how long siding installation takes explains what those milestones look like.

Rhode Island and Connecticut have their own registration programs and contract rules, published by each state’s consumer office. The principles are the same: the registration number on the paper, a reasonable deposit, a permit pulled by the contractor, and a signed change order for anything that moves the price.

Frequently asked questions

Does a siding contract have to be in writing in Massachusetts?

Yes, for any home improvement job over $1,000. The contract has to carry the contractor’s HIC registration number, the total price, a description of the work, start and completion dates, and the payment schedule, and it must state your three-business-day right to cancel if you signed it at home. The current requirements are on mass.gov.

How much of a deposit can a siding contractor ask for?

No more than one-third of the total contract price before work starts. The only exception is special-order material that has to be bought in advance to meet the schedule, and then the actual cost of that material sets the limit. Most of the money up front is a warning sign.

Do you need a permit to replace siding in Massachusetts, and who pulls it?

A full re-side generally requires a building permit; the code’s exemption for ordinary repairs covers minor maintenance, not a replacement. Confirm with your town. The contractor should pull it: a homeowner who secures their own permit is excluded from the state’s Guaranty Fund, the protection that compensates homeowners for a registered contractor’s poor workmanship.

How long is a siding quote good for?

It depends on the contractor, and a good one dates the quote. Material prices and crew schedules move with the season, so most quotes carry an expiration of a few weeks to a couple of months. If yours doesn’t say, ask. Once you sign, the total in the contract is the total, and only a signed change order can move it.