HomePlan

Phase 4 · Bid and contract · Step 4.3

Negotiate and sign the GC contract

Fixed-price is what most owners want. Cost-plus only works with a guaranteed maximum price (GMP) cap. On contracts over $300K, an attorney review pays for itself.

Who
Homeowner, General contractor, Attorney
How long
1-2 weeks
Cost
$1,000-$4,000 if attorney-reviewed
You end up with
Signed contract with payment schedule and change-order terms

Contract structures

Fixed-price is the most common and most owner-protective structure. The GC commits to a total price; cost-overrun risk is theirs, subject to change-order terms. For a whole-house remodel, fixed-price is what you want — but with explicit allowances for unknowns inside an old house.

Cost-plus (GC's actual cost + a percentage markup, typically 10–20%) can work, but only with a guaranteed maximum price (GMP) cap and weekly itemized invoices. Without a cap, all budget risk is on you.

What the contract must include

  • Scope of work in detail (reference the permit-ready set by date and revision number).
  • Payment schedule tied to milestones, not a calendar.
  • Change-order process — written approval required, rate sheet for hourly labor, markup percentage on materials.
  • Schedule — substantial completion date, liquidated damages if applicable.
  • Allowances — cabinets, flooring, fixtures, appliances, with itemized values.
  • Hidden-condition allowances — dollar contingencies for known unknowns inside an old house: rotted sills, additional knob-and-tube remediation, hidden plumbing repairs. Without these, every discovery becomes a change-order fight.
  • Energy compliance scope explicitly called out — what retrofit work (if any) was triggered by the WSEC analysis and is in the bid.
  • Exclusions — explicit list of what's NOT in the bid.
  • Warranty — at minimum 1 year on workmanship; the specific periods and scope should be defined in the contract. Note: WA residential remodel warranty framework comes from standard contractual terms, not a specific warranty statute.
  • Lien waivers — conditional and unconditional, on each progress payment and at completion.
  • Dispute resolution — mediation before arbitration before litigation, in WA.

When to hire an attorney

For contracts over about $300,000 — which is essentially every project in this workflow — an attorney review pays for itself. Two to six hours at $400–$650/hr ($1,000–$4,000 total) catches the change-order terms, hidden-condition allowance language, and lien-waiver schedule that determine how the project handles surprises.

This is informational framing; HomePlan does not provide legal advice.

Where to find a construction-savvy attorney

Three reliable channels:

  1. WSBA Legal Directory. mywsba.org — filter by "Construction Law" practice area.
  2. Your designer or GC's recommendation. Designers and GCs at this scale have usually worked with an attorney on a prior contract review; they know who understands construction vocabulary.
  3. Referral from another professional. A real-estate attorney you've used before can refer to a colleague who handles construction contracts.

What to look for: experience reviewing residential construction contracts at your project's value range; flat-fee or capped-hourly arrangement; willingness to flag change-order language, hidden-condition allowance schedule, and lien-waiver procedure specifically.

Go deeper

Optional reading. Skip if you only need the headline.

›Mechanics' lien deadlines and waiver procedure (WA, 90-day window)Three working parts of WA construction-lien procedure: a 90-day filing window, a pre-claim notice rule for subs, and a two-stage waiver schedule that runs alongside payments.

The procedure in three parts

Washington's construction-lien procedure under RCW 60.04 has three working parts:

  1. A 90-day filing window measured from the last day labor or materials were furnished (RCW 60.04.091).
  2. A pre-claim notice that subs and suppliers (not the prime GC) have to deliver early in their work (RCW 60.04.031).
  3. A two-stage waiver schedule — conditional waivers at each progress payment, unconditional final waivers at completion.

Anyone who furnishes labor or materials to an improvement on your property has lien rights under this chapter. Liens are recorded with the King County Recorder and stay on title until released.

The 90-day clock

A claimant has 90 days from the date they last performed labor or supplied materials to record the lien. After 90 days with no recording, the lien right expires (RCW 60.04.091).

Important: title is fully clear 90 days after the last sub leaves the site — usually the landscape, paving, or punch-list crew, not the GC.

Pre-claim notice (RCW 60.04.031)

For most subs and material suppliers (not the GC you contracted with directly), the lien right depends on first delivering a pre-claim notice within 60 days of starting work or supplying materials. Getting one of these during construction is routine — it's a procedural protection, not a dispute. Treat it as a signal to add the sender to the waiver list for upcoming draws.

Exception: persons contracting directly with the owner, laborers, and subcontractors contracting directly with the prime contractor are generally exempt from the notice requirement. The rules for owner-occupied residential repair/remodel have some nuance — the statute sets out specific exceptions.

The lien waiver schedule

Two waivers, two stages:

Waiver type When Who signs What it does
Conditional waiver upon progress payment At each progress payment GC + every sub/supplier on that draw Releases lien rights conditional on the check clearing
Unconditional waiver upon final payment At final payment GC + every sub/supplier who worked the project Releases lien rights absolutely

Both forms are statutory in WA — use the statutory form (as prescribed in RCW 60.04) so it survives challenge.

How to operate the schedule

  1. In the GC contract, require a current sub list with each progress draw.
  2. For each progress draw, the GC delivers signed conditional waivers from every sub/supplier on that draw, plus a signed conditional from the GC for their own scope. Disbursement is conditioned on receipt.
  3. At final payment, switch to unconditional final waivers from every sub and supplier who appeared on any draw, plus unconditional final from the GC. Hold final retainage until all are received.
  4. Then run the 90-day clock anyway. Even with full waivers, monitor the King County Recorder for liens for 90 days from the last on-site work.

Informational framing

This is general information about Washington lien procedure under RCW 60.04. It's not legal advice and doesn't establish an attorney-client relationship. For waiver language specific to your contract or if you receive a recorded lien, you may wish to consult an attorney licensed in WA — verify via the WSBA Legal Directory.

Sources for this section

Where this information came from

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