Illinois Basement Contract Checklist
Updated
Short answer
Part of Framing and Drywall.
The law
The Home Repair and Remodeling Act, 815 ILCS 513, names basements outright in its definition of home repair and remodeling and covers residences of one to six units (Home Repair and Remodeling Act, 815 ILCS 513). Section 15 sets the contract rule:
“Prior to initiating home repair or remodeling work for over $1,000, a person engaged in the business of home repair or remodeling shall furnish to the customer for signature a written contract or work order that states the total cost, including parts and materials listed with reasonable particularity and any charge for an estimate.”
The same section requires the contract to state the business name and address, and the residence address if the business uses a post office box or mail receiving service (Home Repair and Remodeling Act, 815 ILCS 513/15). Section 20 adds the pamphlet:
“For any contract over $1,000, any person engaging in the business of home repair and remodeling shall provide to its customers a copy of the "Home Repair: Know Your Consumer Rights" pamphlet prior to the execution of any home repair and remodeling contract.”
The arbitration choice
If a contract forces binding arbitration and waives a jury trial, the Act requires that the homeowner be given the option of accepting or rejecting both clauses before the contract is signed:
“The consumer shall be given the option of accepting or rejecting both the binding arbitration clause and the jury trial waiver clause before the contract or agreement is accepted and executed by the consumer.”
Insurance
The Attorney General says the Act requires contractors to carry public liability and property damage insurance, and advises you to verify it (Illinois Attorney General, How to Choose a Contractor). We did not retrieve the statute section itself, so cite the Attorney General's page when you ask. A certificate from the contractor's insurer is the practical proof.
What else to put in a basement contract
The law sets a floor. These items are recommendations that follow from the rules in this site's other guides, not requirements of the Act:
- A scope list by line. Framing, insulation, drywall, ceiling, flooring, electrical, plumbing, egress, paint, trim. See what a finish includes.
- Permits. Who applies, who pays, and which trade permits are included. See the fee guide.
- Moisture and radon. What happens if the work uncovers water, or a radon result above 4 pCi/L.
- Allowances. For fixtures, flooring, lighting: the amount, and who chooses.
- Change orders in writing. A price for each change before work starts.
- Schedule. Start, inspection milestones and completion. Rockford asks for 24 hours' notice for inspections.
- Payment schedule tied to milestones. Not to dates alone.
- Warranty. The Attorney General notes a one-year general warranty against workmanship defects is common but not required, so write down what is promised.
- Cleanup and debris.
Who the law covers
It covers the business of home repair and remodeling and the customer. It does not set rules for your own labor, and it does not replace a lawyer. For legal questions on a specific dispute, the Attorney General's Consumer Fraud helplines are 1-800-243-0618 (Springfield), 1-800-386-5438 (Chicago) and 1-800-243-0607 (Carbondale).
Next: how to hire a contractor. Price lines are on the cost page.
A payment schedule that follows the work
Illinois law does not set a deposit limit in the sources we read, so the schedule is a matter of agreement. A common structure ties payments to milestones you can see: a start payment, then payments at rough-in inspection, at drywall, and at final inspection, with a holdback until punch-list items are done. This is our suggestion, not a rule. The point is that no payment should run ahead of the work or of the inspections, and that each payment should be written next to the milestone that triggers it.
Change orders
A basement turns up surprises: water behind a wall, an old circuit, a beam lower than expected. Put into the contract how a change is priced, who must approve it and that it is in writing before the work is done. Ask for a price for the change that includes the permit effect, if any.
Where to go next
This guide sits under Framing and drywall. Every price on this site, with its source and date, is on the basement finishing cost page. If this topic is on your list, these guides cover the neighbouring questions: How to Hire a Basement Contractor in Illinois, What Is Included in Finishing a Basement?, DIY vs Hiring a Contractor to Finish a Basement, and Basement Finishing Near Me in Rockford: How to Choose.
Quick answers
Does a basement job need a written contract in Illinois?
Any home repair or remodeling work over $1,000 needs a signed written contract or work order stating the total cost, materials listed with reasonable particularity, and any charge for an estimate. Basements are named in the Act.
What must the contractor give me before I sign?
The "Home Repair: Know Your Consumer Rights" pamphlet, on any contract over $1,000, before the contract is executed.
Can a contract force me into arbitration?
It can include binding arbitration and a jury trial waiver, but the Act requires that you be given the option of accepting or rejecting both clauses before signing.
Does the contract have to include the permit?
The Act does not say so, but you should write down who applies for and pays for each permit. Rockford fees double for starting without one. See the cost page.
Planning a basement finish?
Tell us the size of the basement and what you want down there. We reply with a price range first.