Home improvement contractors are generally companies that manage and construct improvements to existing residences—whether kitchens, bathrooms, bedrooms, or complete remodels.

A contract for home improvement includes a description of the scope of the work to be performed; the materials to be used; the general contractor’s obligations to hire and manage subcontractors to construct the various components of the building; the payment terms for the construction of the building and the management of the construction; the time for completion of the work; insurance requirements; and the filing and removal of mechanic’s and materialmen’s liens (also known as construction liens or contractor liens) for labor and materials provided to improve the real estate.

In Idaho, home improvement contractors are not required to have a state license to operate, but they must adhere to local licensing requirements where they are applicable. Contracts for home improvement should be detailed and in writing, outlining the scope of work, materials to be used, contractor's responsibilities, payment terms, completion time, insurance requirements, and provisions related to mechanic's and materialmen's liens. Idaho Code Title 45, Chapter 5, governs the use of mechanic's liens, which are security interests that can be placed on a property by workers or suppliers who have not been paid for improvements they have made to the property. These liens ensure that contractors, subcontractors, and material suppliers have a legal claim to compensation for their labor and materials. It is important for homeowners to request and verify references, insurance, and, where applicable, local licensing before hiring a contractor for home improvements. Additionally, homeowners should be aware of their right to a lien waiver upon successful payment and completion of the work.