A drywall contract is your best protection against delays, cost overruns, and poor-quality work. Without clear terms in writing, disputes over scope, payment, and timelines become expensive and stressful. Understanding what to demand in a drywall contractor agreement ensures both sides know exactly what they're getting.
The Scope of Work Section
This is where specifics matter most. Your contract should detail the exact square footage being drywalled, the type and thickness of drywall being used (typically 5/8" for fire-rated applications), and the finish level required. Finish levels range from Level 0 (no finishing) to Level 5 (fully sanded and primed), and the cost difference is substantial—a Level 5 finish can cost 40–60% more than Level 3.
The scope should also clarify whether the contractor is supplying materials, labor only, or both. Many customers assume materials are included when they're not, leading to confusion and conflict mid-project.
Pricing and Payment Terms
Request a fixed price rather than hourly rates when possible. Drywall work typically costs $1.50–$3.00 per square foot for installation and finishing, depending on complexity and finish level. Verify whether this includes taping, mudding, sanding, and primer.
Payment should never be 100% upfront. A standard schedule looks like this:
- 33% deposit upon signing
- 33% upon material delivery or framing inspection
- Final 34% upon substantial completion and final walkthrough
Avoid contractors demanding more than 50% down. Include a clause stating that payment schedules adjust if the project scope changes or timeline shifts due to contractor delays.
Timeline and Completion Date
Specify start and end dates clearly. A typical drywall installation takes 2–4 weeks depending on square footage, complexity, and finish level. Factor in drying time between mud coats—usually 24 hours per coat for Level 4–5 finishes, which can add 10–15 days.
Include language about what happens if the contractor misses the deadline. Reasonable penalties might be $50–$150 per day of delay, capped at 5–10% of the total contract value. This motivates timely work without being punitive.
Materials and Quality Standards
Specify the brand and grade of drywall, joint compound, tape, and fasteners. For example: "½" × 4' × 8' Type X drywall, USG Lightweight All Purpose joint compound, paper drywall tape." Cheaper materials often result in cracking, tape bubbles, and premature failure.
Request that the contractor follow industry standards from the Gypsum Association or relevant building codes. Many homeowners don't realize that Level 5 finishes require specific humidity and lighting conditions during application—this should be addressed in the contract.
Insurance and Licensing
Demand proof of liability insurance (minimum $1 million coverage) and workers' compensation insurance. Request a Certificate of Insurance naming you as an additional insured. Verify the contractor holds a current license in your state—requirements vary, but most states require licensing for projects over $10,000.
A contractor without insurance or proper licensing puts your project at risk if someone is injured or damage occurs.
Warranty and Cleanup
Include a minimum 1-year warranty covering defects like nail pops, tape separation, and visible seams. Some contractors offer 2–5 year warranties on finish work.
Clarify cleanup responsibilities. The contractor should remove drywall scraps, dust, and debris daily, with final cleanup upon project completion. Leaving dust and debris inside your home can damage HVAC systems and other areas.
Change Order Process
Projects change. Include language about how change orders are handled—require written approval and pricing before work begins, and specify that verbal agreements don't count. This prevents surprises on the final invoice.
Getting Help with Contractor Selection
Once you've outlined what your contract should include, finding the right drywall contractor becomes easier. Mercoly lets you compare and find trusted drywall contractors in one place, so you can review proposals side-by-side and confirm they address these key contract elements before signing.
Frequently Asked Questions
Q: What's the difference between drywall finishing levels, and which do I actually need? Level 3 works for utility spaces or areas with indirect lighting; Level 4 suits most living areas and is standard for flat walls with direct lighting; Level 5 is required for high-end finishes, dark paint, or glossy surfaces where imperfections show. Your contractor should recommend based on your space and budget.
Q: How much should I expect to pay per square foot for drywall installation and finishing? Installation alone typically costs $0.80–$1.20 per square foot, while finishing (taping and mudding) adds $0.70–$1.80 depending on finish level. Combined, most projects fall between $1.50–$3.00 per square foot for labor and materials.
Q: What happens if the contractor finds mold or water damage behind the walls? Your contract should specify that any unexpected structural or moisture issues require written approval and a change order before proceeding. Include a clause that halts work if hazardous conditions are discovered until remediation is complete.
Compare detailed proposals from multiple contractors and request that each address these contract terms before you hire.