Foundation Repair Contracts, Warranties and Permits: What to Get in Writing

Last reviewed October 28, 2026 · 2 sources cited

A foundation repair is only as good as the paper behind it. The contract fixes the scope and price; the warranty is what you rely on if movement continues; permits and lien waivers protect you from problems that surface later.

What the contract should contain

The FTC says to get a written contract even if your state does not require one, and lists what it should include:^[1]

• The contractor's name, address, phone number and license number (if required).
• Estimated start and completion dates.
• A payment schedule covering the contractor, subcontractors and suppliers.
• The contractor's obligation to obtain all necessary permits.
• How change orders are handled, since they can affect cost and schedule.
• A detailed materials list.
• Warranty terms for materials and workmanship, including who honors them.
• The scope of work, including whether cleanup and debris removal are included.
• Any verbal promises, written into the contract.
• A written statement of your right to cancel within three business days if you signed at home or somewhere other than the seller's permanent place of business.

For foundation work, add: the repair design or scope document (and engineer's stamp if applicable), the number, depth and location of piers or injection points, the lift target and tolerance, a post-repair elevation survey, plumbing tests, and restoration of landscaping or hardscape.

Warranties: read them like a contract

• What is covered. The pier only? The whole structure? Cracks and cosmetic damage?
• For how long. And whether it runs from installation or ends at a fixed date.
• What voids it. Drainage changes, plumbing leaks, lack of maintenance, other contractors' work.
• Whether it transfers to a new owner, which affects resale; see does foundation repair hurt resale value?
• Who honors it. The FTC says the contract should state who honors warranty terms.^[1] If a company closes, a warranty from a defunct company has little value.

The Federal Trade Commission's guidance does not address foundation warranties specifically, and we found no neutral industry survey of warranty terms, so the points above are general contract practice rather than findings.

Permits

The FTC says most states and localities require permits for building projects, even simple ones like decks, and a competent contractor should obtain all necessary permits before starting work. It lists a request that you obtain permits yourself as a red flag.^[1][2] Whether foundation repair needs a permit varies; ask your local building department, and ask whether an engineer's letter or inspection is required.

Payment

• Avoid paying cash. Use a check or credit card for smaller jobs; consider financing for larger ones.^[1]
• Limit the down payment; some states restrict how much a contractor can request.^[1]
• Tie payments to completed milestones so that delays in the work also delay payments.^[1]

Lien waivers and final payment

Before the final payment, get lien releases or waivers from the contractor and every subcontractor and supplier; otherwise unpaid parties may file a mechanic's lien against your home. Before signing off, confirm the work meets the contract, you have written warranties, subcontractors and suppliers are paid and the site is cleaned up. Keep paperwork, change orders, payment records and a log of conversations in one place.^[1]