How Binding Are Roofing Contracts?

When you’re hiring pros to make major home repairs or renovations, you can expect to sign a contract. Contracts protect you as the consumer and the pros who will be completing the work. Roofing contracts, sometimes known as roofing contingency contracts, are legally binding documents that lock both you and your roofing contractor into an agreement. Let’s take a look at how these roofing contracts work, as well as when and how you can break them without serious consequences.

What Is a Roofing Contingency Contract? 

When you hire a local roofing company, you’ll likely sign a contract or a contingency contract to reserve your project’s start date and spell out the terms of your agreement.

In a standard roofing contract, you and the roofing company are the only parties involved. In a roofing contingency contract, the word “contingency” indicates an insurance company's role in the process.

The contract’s viability is contingent on your insurance provider’s approval of the work. If, for any reason, your insurance claim isn’t approved before the roofing pros start working, the contract becomes void. If your insurer approves the claim and you sign the roofing contingency contract, you agree that these pros are the only ones who will tackle the approved work.

What Should Be Included in a Roofing Contract?

Prior to signing your contingency contract, discuss the details with your roofer and ensure your roofing contract includes the basics:

• Professional’s name

• Business address

• Contact information for your roofer

• Insurance information

• Professional insurance information

If the job requires any licenses or permits, the contract should include this information as well as a scope of work, materials list, and projected timeline. The roofing contract should also include detailed descriptions of how any installation is going to take place, when you should pay your roofer, the due dates of any deposits, and a list specifying accepted payment methods.

A good contract also includes a termination clause. A termination clause specifies when or why either party may terminate the contract. It’s important to spend extra time reading this section of the contract to understand your options and how binding your roofing contract really is.

Are Roofing Contracts Legally Binding?

Yes, roofing contracts, just like most other written contracts, are legally binding. When you sign your contract, you agree to pay that particular professional the agreed-upon amount for the agreed-upon work. Backing out of a contract after signing can come with legal consequences, and your roofer could opt to sue you for defaulting.

How Long Are Roofing Contracts Good For?

Roofing contracts will often have an expiration date, which means you or your roofer can back out of the agreement if your insurance company takes too long to approve the proposal. Check your contract for this date before signing to understand how long you’re committed to working with that particular roofer.

With that being said, you can often cancel a roofing contract within 72 hours of signing the contract without incurring cancellation fees. You should pay attention to and note the terms and conditions detailed in the contract—or ask your roofing contractor for exact dates—before signing any official documentation. 

Can You Cancel a Roofing Contract That You Signed With a Company?

You can cancel most contracts, including the majority of roofing contracts, within three days of signing with no legal repercussions. Check your contract for the length of the grace period. Aside from that small window, you are legally bound to work with that roofing contractor when you sign a contract.

While you can’t typically walk away from a contract for no reason, there are some situations in which your contract may become null and void. These situations include the following:

• Your insurance company denies your claim in full

• Your insurance company partially denies your claim or requires a change order

• Your insurance company approves your claim but does not agree to pay the quoted fee, and your roofer backs out

• Your contract expiration date passes before your insurance company approves the work

What Happens If a Roofing Contract Is Breached?

If you break your contract without grounds, the pro could sue you for loss of profit or contract violation. That’s why it’s essential that you review all aspects of your roofing contract before agreeing to work with a roofing service.

Your best course of action if a contractor breaches a roofing contract is to hire an attorney to carry out legal proceedings. You can often sue for breach of contract, and you might want to consider filing a complaint with the Better Business Bureau (BBB) and your state’s licensing regulator or the attorney general. You’ll also want to find a reliable contractor to fix or complete the work the original roofer neglected to complete, but only after documenting what the first contractor did or didn’t do.

Tips for Reviewing a Roofing Contract

Getting to the point where you need to take legal action against a roofer who defaults on their end of the contract—or, worse, to the point where you feel the need to back out—can be stressful. Use the tips below to make sure you understand your contract fully before signing to avoid these issues and unnecessary frustration.

• Read through your contract in its entirety: Never feel rushed to sign a roofing contract, no matter the circumstances. Read all parts of the contract in full, including the fine print, and don’t be afraid to ask questions if you don’t understand any portion of it.

• Double-check the scope of work and materials: Whether your roofer or insurance company draws up the contract, make sure that the contract includes the materials you want and all of the line items you need. If it’s a roofing contingency contract, you might be able to negotiate with your insurance company to get different materials included.

• Confirm the total cost and verify that it makes sense: Check that the subtotals for each line item add up to the total and compare to the average cost of roof replacement. If the contract amount is significantly higher or lower than what you expect, ask your roofer or insurer about the discrepancy.

• Read the cancellation clause: Familiarize yourself with the cancellation clause to make sure you know how and when you and your roofer can back out of the contract.