Top 5 Construction Contract Mistakes Minnesota Homeowners Make

Starting a new home build or adding onto your current home is an exciting time. You want your home to reflect your unique style and the needs of your family. However, even the smallest oversight in a construction contract can lead to disputes, delays, and added costs. At Minnesota Construction Law Services, our seasoned team is here to explain these common construction contract mistakes Minnesota homeowners make and how you can avoid them.

Common Construction Contract Mistakes Made by Minnesota Homeowners

Whether you are starting a new build in Bloomington or are putting an addition onto your home in Minneapolis, having a solid contract in place is crucial. A poorly written contract or a simple handshake can leave you exposed to unnecessary risks down the line.

In 2025, the Twin Cities area saw around 8,052 new home builds, and the home building industry in Minnesota is currently valued at $2.2 billion. With so much at stake, whether you are building a custom home or adding on a family room, avoiding certain contract pitfalls can help you avoid added time, costs, and legal headaches down the road. The top five most common contract mistakes include:

• Not putting the contract in writing. This is, quite possibly, the most costly and biggest mistake when it comes to home construction. A verbal agreement or a simple handshake are basically impossible to enforce should issues arise down the line. When something goes wrong, it can become a challenging “he-said, she-said” situation. Always get a construction contract in writing, even if the job is a relatively small one.
• Missing or vague scope of work. An incomplete or unclear scope of work laid out in the contract is one of the most common causes of conflict in construction jobs. Without a clarified and detailed scope of work, legal disagreements are almost inevitable. You need to define who is responsible for securing permits, who is in charge of clean up, and how certain materials will be sourced.
• No included payment schedule. When it comes to managing expectations and cash flow for a building project, a well-structured payment schedule is crucial. Without it, you could risk work stoppages and costly delays. It is important to break down the payment into stages that are tied to milestones in the project, such as completion of framing, installation of drywall, and the final inspection. The contract should include due dates.
• No included essential legal provisions. A contract needs to include certain important clauses such as a termination clause, methods for dispute resolution, and any change order procedures. All of these provisions should be included in the contract from the start of work.
• Failure to comply with local laws and licensing. In Minnesota, construction laws are strict and may even vary depending on the specific location in which you are building. It is important that you have a contract reviewed by an attorney familiar with your area who can make certain the contract complies with local and state law and licensing.

Hire a Construction Contract Lawyer Today

To hire a construction contract lawyer serving Minnesota, call the offices of Minnesota Construction Law Services today and schedule a consultation.