I am a contractor located in Illinois. Even if we sign a contract with an out of state contractor and their contract states the laws of their home state apply, the laws of Illinois actually apply due to the work being performed is in Illinois.
I have seen some downright comical paragraphs in contracts (you, the sub, agree to waive all lien rights, work not shown on the drawings deemed necessary shall be performed at no additional cost, your change orders are limited to your actual costs plus 5%, etc.)
A smile and a handshake would be a nice way to do business. I have a couple of customers I can trust. Everyone else I hand a pen to sign the contract.
And make sure your contract includes your scope of work. Watch out for modifications made by the customers to your scope. Ambiguities can bite you hard.
You'll get burned eventually. We just learn from our mistakes and grow stronger.
