CONSTRUCTION AGREEMENT
This Construction Agreement is entered into on [Date] between:
PARTIES
OWNER:
Name: [Owner Full Name]
Address: [Owner Address]
Phone: [Owner Phone] | Email: [Owner Email]
CONTRACTOR:
Company Name: [Contractor Company Name]
License Number: [Contractor License Number]
Address: [Contractor Address]
Phone: [Contractor Phone] | Email: [Contractor Email]
ARTICLE 1: PROJECT DESCRIPTION
1.1 Property Location: [Full Property Address]
1.2 Scope of Work: The Contractor shall perform the following work:
[Detailed description of construction work to be performed]
1.3 Plans and Specifications: Work shall be performed according to:
- Architectural plans dated [Date]
- Specifications attached as Exhibit A
- Local building codes and regulations
ARTICLE 2: CONTRACT PRICE AND PAYMENT
2.1 Contract Price: The total contract price is [Currency] [Amount] ([Amount in Words]).
2.2 Payment Schedule:
- Deposit/Mobilization: [Amount or %] upon signing
- Foundation Complete: [Amount or %]
- Framing Complete: [Amount or %]
- Rough-In Complete (electrical, plumbing, HVAC): [Amount or %]
- Drywall/Interior Finishes Complete: [Amount or %]
- Substantial Completion: [Amount or %]
- Final Payment (after punch list): [Amount or %]
2.3 Retention: [X%] shall be retained from each payment and released upon final completion.
2.4 Payment Terms: Payment due within [7/14/30] days of invoice for completed milestone.
ARTICLE 3: PROJECT SCHEDULE
3.1 Start Date: Work shall commence on or before [Start Date].
3.2 Completion Date: Substantial completion shall be achieved by [Completion Date].
3.3 Working Hours: Work shall be performed between [Start Time] and [End Time], [Days of Week].
3.4 Delays: Extensions granted for delays beyond Contractor's control including weather, owner delays, unforeseen conditions, or force majeure events.
ARTICLE 4: CHANGE ORDERS
4.1 No changes to the work shall be made without a written change order signed by both parties.
4.2 Each change order shall specify the change in scope, price adjustment, and schedule impact.
4.3 Contractor shall provide written estimate for requested changes within [3-7] business days.
ARTICLE 5: CONTRACTOR'S RESPONSIBILITIES
The Contractor shall:
5.1 Perform work in professional, workmanlike manner
5.2 Obtain all required permits and inspections
5.3 Provide all labor, materials, equipment, and tools
5.4 Supervise and coordinate all work and subcontractors
5.5 Maintain safe and clean work site
5.6 Protect Owner's property from damage
5.7 Perform final cleanup upon completion
5.8 Correct defective work promptly
ARTICLE 6: OWNER'S RESPONSIBILITIES
The Owner shall:
6.1 Provide site access during working hours
6.2 Make timely payments per schedule
6.3 Make timely decisions on selections and changes
6.4 Provide utilities (water, electricity) as needed
6.5 Not interfere with Contractor's work
ARTICLE 7: INSURANCE AND LIABILITY
7.1 Contractor's Insurance: Contractor shall maintain:
- General Liability: Minimum [$1,000,000] per occurrence
- Workers' Compensation: As required by law
- Vehicle Insurance: For all vehicles used
7.2 Contractor shall provide certificates of insurance before commencing work.
ARTICLE 8: WARRANTY
8.1 Workmanship Warranty: Contractor warrants workmanship for [1/2] year(s) from substantial completion.
8.2 Materials and equipment are covered by manufacturer warranties.
8.3 Contractor shall repair defects in workmanship at no cost to Owner during warranty period.
ARTICLE 9: COMPLETION AND ACCEPTANCE
9.1 Substantial Completion: Project substantially complete when usable for intended purpose, with only minor items remaining.
9.2 Punch List: Owner and Contractor shall create list of remaining items. Contractor shall complete within [30] days.
9.3 Final Completion: Project complete when all punch list items finished and final payment due.
ARTICLE 10: TERMINATION
10.1 Owner may terminate for Contractor's material breach after [7] days' written notice.
10.2 Owner may terminate for convenience with [14] days' notice, paying for work completed plus reasonable profit.
10.3 Contractor may terminate if Owner fails to pay after [14] days' written notice.
ARTICLE 11: GENERAL PROVISIONS
11.1 Governing Law: This Agreement governed by laws of [State/Province/Country].
11.2 Dispute Resolution: Disputes shall be resolved through [mediation / arbitration / litigation].
11.3 Entire Agreement: This Agreement constitutes entire agreement and supersedes prior understandings.
11.4 Amendments: Amendments must be in writing signed by both parties.
IN WITNESS WHEREOF, the parties have executed this Agreement.
OWNER:
Signature: _________________________________
Name: [Owner Full Name]
Date: _____/_____/_________
CONTRACTOR:
Signature: _________________________________
Name: [Authorized Signatory Name]
Title: [Title]
Date: _____/_____/_________