Before You Sign: The Clauses That Can Cost You a Fortune

In short — In a modular home contract, watch seven things: the exact scope (who handles the foundation, transport, and hookups), the price and what it covers, the schedule and delay penalties, the draw schedule, the warranties, the conditions for changes and cancellation, and acceptance (final inspection). What is not in writing does not exist — a verbal promise does not protect you.

The contract is where good intentions become binding commitments. It is also where the most costly gaps hide. Here is what to read — and insist on clarifying — before you sign.

The clauses that matter

1. Scope: the number one source of disputes

The decisive question: what is in the price, and what is not? Foundation, transport, crane, hookups, finishes: every item needs a named responsible party. This is also what separates a "factory price" from a "turnkey" price — see turnkey: what the price hides.

2. Price and allowances

Watch out for allowances (provisional amounts for choices not yet finalized, such as finishes or the kitchen): when set too low, they inflate the final bill. Demand realistic amounts and a clear rule for overruns.

3. Schedule and penalties

A written timeline, step by step, with a clause covering delays. Real timelines depend on the project, but the commitment must be contractual, not verbal.

4. Draw schedule

A portion of the payment goes to the factory before installation. The contract must tie each payment to a verifiable milestone (order, production, delivery, finishes). Align it with your financing — see mortgage and financing.

5. Warranties

Who covers what, and for how long? Distinguish between the factory warranty and the warranty on site work, and verify that a new residential home warranty plan applies. See certifications, associations, and funding.

6. Changes

You will probably change your mind on a detail. The contract must state how much a change costs and how it affects the schedule — before production begins.

7. Acceptance

At delivery, a final inspection and a deficiency list of items to correct. Do not release the final payment until corrections are complete. Site work remains subject to municipal inspection — see modular construction and the RBQ.

Before you even reach the contract stage, ask the 7 questions that spot a bad builder.

Important — This guide is informational and does not replace legal advice. For a commitment of this magnitude, have the contract reviewed by a professional.

Sources: Régie du bâtiment du Québec (Construction Code), Garantie de construction résidentielle (GCR). Guide written by Jeremy Soares. Last updated: June 26, 2026. Informational content; does not replace legal advice.