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Construction Agreement Template
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Construction Agreement Template
This Construction Agreement (the “Agreement”) is entered into as of [Effective Date] by and between:
Owner/Client: [Owner Full Name], address: [Address] (“Owner”).
Contractor: [Contractor Legal Name], address: [Address] (“Contractor”).
Owner and Contractor may be referred to individually as a “Party” and collectively as the “Parties.”
1. Project and Scope
1.1 Project Address: [Project Address].
1.2 Scope of Work. Contractor will perform the following work (the “Work”): [Describe scope].
1.3 Plans/Specifications (Optional). The Work will be performed according to: ☐ plans/specs dated [Date] ☐ Exhibit A ☐ other: [Docs].
1.4 Excluded Work (Optional). The following is excluded: [List].
2. Schedule
2.1 Start Date: [Start Date].
2.2 Substantial Completion Date (Target): [Date].
2.3 Working Hours (Optional): [Hours/days].
2.4 Delays. Schedule may be extended for weather, permit delays, material shortages, or changes approved under Section 6.
3. Price and Payment
3.1 Pricing Model (Select One):
☐ Fixed price (lump sum): $[Amount]
☐ Time and materials: $[Rate]/hour + materials
☐ Cost-plus: cost of work + [__]% fee
3.2 Deposit (Optional): $[Amount] due on [Date].
3.3 Payment Schedule (Select One):
☐ Milestones: [List milestones + amounts]
☐ Progress payments: every [] weeks based on % completion
☐ Monthly invoices due within [] days
3.4 Retainage (Optional): []% withheld until final completion (if used).
3.5 Late Payments (Optional): $[] or [__]% per month (if permitted).
4. Materials and Standards
4.1 Materials. ☐ Contractor supplies ☐ Owner supplies ☐ split: [Details].
4.2 Substitutions. No substitutions without Owner’s written approval (if required).
4.3 Workmanship Standard. Contractor will perform in a professional and workmanlike manner and in compliance with applicable building codes.
5. Permits, Code Compliance, and Inspections
5.1 Permits (Select One): ☐ Contractor obtains ☐ Owner obtains ☐ split: [Details].
5.2 Inspections. Contractor will coordinate inspections required for the Work.
5.3 Utilities/Access. Owner will provide reasonable access to the site and utilities: [Water/power].
6. Changes and Change Orders
6.1 All changes must be documented in a written change order signed by both Parties.
6.2 Change orders must state: change description, price adjustment, and schedule adjustment.
6.3 No additional work will be required unless authorized in writing.
7. Site Conditions, Safety, and Cleanup
7.1 Site Conditions. Owner will disclose known issues (asbestos, mold, structural issues).
7.2 Safety. Contractor is responsible for jobsite safety and compliance with safety rules.
7.3 Cleanup. Contractor will keep the site reasonably clean and remove debris: ☐ daily ☐ weekly ☐ at completion.
8. Insurance and Liability
8.1 Contractor will maintain insurance: ☐ general liability ☐ workers’ compensation (if applicable) ☐ auto ☐ other: [Types].
8.2 Proof of insurance will be provided upon request.
9. Warranty
9.1 Workmanship Warranty (Optional): Contractor warrants workmanship for [__] months from completion.
9.2 Manufacturer warranties for materials apply where available.
10. Termination
10.1 Either Party may terminate for material breach not cured within [] days after notice.
10.2 Owner may terminate for convenience with [] days’ notice, paying for work completed and non-cancellable materials.
10.3 Upon termination, Contractor will stop work and provide an invoice for completed work.
11. Disputes
11.1 The Parties will try to resolve disputes in good faith.
11.2 Dispute process (Optional): ☐ mediation ☐ arbitration ☐ court. Venue: [Location].
12. Notices
12.1 Notices must be in writing and delivered to the addresses above.
13. Governing Law
13.1 This Agreement is governed by the laws of [State/Country].
14. Entire Agreement
14.1 This Agreement and any exhibits are the entire agreement regarding the Work.
Signatures
By signing below, the Parties agree to this Construction Agreement as of the Effective Date.
Owner/Client: [Full Name]
Date: [Date]
Signature: ___________________________
Contractor: [Legal Name]
Name/Title: [Signer Name, Title]
Date: [Date]
Signature: ___________________________
Witnesses (If Required)
Witness Name: [Name]
Date: [Date]
Signature: ___________________________
Notary / Notarization (Optional)
State of [State]
County of [County]
On [Date], before me, [Notary Name], personally appeared [Owner Name] and [Contractor Signer Name], known to me (or satisfactorily proven) to be the persons whose names are subscribed to this Agreement, and acknowledged that they executed it for the purposes stated.
Notary Public Signature: _______________________
My Commission Expires: _______________________
Notary Seal (if applicable): ___________________
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Easy-to-understand jargon
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Construction Agreement Template
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For quick answers, scroll below to see the FAQ.
Click below for detailed info on the template.
For quick answers, scroll below to see the FAQ.
CONSTRUCTION AGREEMENT TEMPLATE FAQ
What is a construction agreement?
A Construction Agreement is a contract between a property owner and a contractor for construction, remodeling, or improvement work. It describes the scope, price, timeline, materials, permits, payment schedule, and what happens if changes or delays occur.
What pricing structures are common?
Common options include fixed price (lump sum), time and materials, or cost-plus. This template includes all three options so you can choose the structure that matches the project.
How do change orders work?
A change order is a written agreement that modifies the scope, price, or schedule. This template includes a simple change-order process so both parties agree before extra work begins.
Should the agreement include permits and inspections?
Yes. Most projects require permits and inspections. This template includes a section to assign responsibility for permits, code compliance, and inspection scheduling.
What should be included?
Key sections include: project description, scope and plans/specs, schedule, price and payments, change orders, materials and workmanship standards, site access and safety, insurance, warranties, dispute resolution, and termination.
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