Construction contract template (US)

Construction Contract

This Construction Contract ("Contract") is made on Effective Date between Owner Name at Owner Address ("Owner") and Contractor Name, a Contractor Entity Type and State, at Contractor Address ("Contractor"), license number Contractor License Number, if required.

1. The Work

Contractor will perform and complete the following at Project Address: Description of Work. The work follows the plans and specifications dated Plans Date, which are part of this Contract. If they conflict with this Contract, this Contract controls.

2. Price and Payment

The contract price is $Contract Price. Owner will pay as follows:

| Milestone | Amount |

| --- | --- |

| Deposit on signing | $Deposit Amount |

| First Milestone | $First Milestone Amount |

| Second Milestone | $Second Milestone Amount |

| Final completion | $Final Payment Amount |

Owner may hold back Retainage Percent% of each progress payment until final completion, within any limit set by state law. Owner will pay undisputed invoices within Payment Days days. Some states cap deposits on home projects, so the deposit must comply with the law of the project's state.

3. Schedule

Work will start by Start Date and reach substantial completion by Completion Date. These dates extend for changes, severe weather, permit delays, Owner's delays and other causes beyond Contractor's reasonable control, if Contractor gives prompt written notice. For delay Contractor is responsible for, the parties agree on Daily Delay Amount or None per day as a reasonable estimate of Owner's loss.

4. Changes

No change to the work, price or schedule is binding until both parties sign a written change order that states its effect on price and time.

5. Permits and Standards

Permit Responsible Party will obtain the building permits and inspections. Contractor will do the work in a good and workmanlike manner, using new materials unless stated otherwise, and in line with building codes and workplace safety law, including OSHA rules.

6. Site and Subcontractors

Owner will give access to the site, and access to water and power as needed. Contractor is responsible for its subcontractors and suppliers and for site safety and clean-up. Contractor is an independent contractor, not Owner's employee.

7. Liens

On each payment Contractor will give Owner a lien waiver for the amount paid, from itself and from its subcontractors and suppliers on request. Contractor and those who supply labor or materials may have lien rights against the property under state law if they are not paid. Any notices the state requires are attached.

8. Insurance

Contractor will carry commercial general liability insurance of at least $Contractor Liability Coverage per occurrence, plus workers' compensation as the law requires, and will give certificates before starting. Builder's Risk Responsible Party will carry builder's risk or property insurance on the work.

9. Hidden Conditions

If Contractor finds a concealed condition that could not reasonably have been foreseen, such as buried obstructions, asbestos or lead paint, it will stop the affected work, notify Owner, and the parties will sign a change order.

10. Warranty

Contractor warrants its work against defects in materials and workmanship for Warranty Period from substantial completion, and will fix covered defects after written notice. Manufacturer warranties pass to Owner. This warranty does not limit any right that state law gives Owner and that cannot be waived.

11. Termination

Either party may end this Contract if the other materially breaches and does not cure within Cure Days days after written notice. If this Contract ends, Owner will pay for work properly done to that date, less any cost caused by Contractor's breach.

12. Disputes

The parties will first try to resolve any dispute by direct talks, and then by mediation in Mediation Location, before filing suit, except for a claim needed to protect lien rights.

13. Right to Cancel

If this is a home improvement contract, any notice of cancellation or other wording that federal or state law requires is attached and is part of this Contract. A consumer who signs at home, away from the contractor's place of business, may have three business days to cancel.

General Terms

Governing law. This Contract is governed by the laws of the State of Governing State, without regard to its conflict of laws rules. Any lawsuit will be brought in the state or federal courts located in Venue County and State.

Entire agreement. This Contract is the parties' complete agreement on its subject and replaces all earlier discussions. It may be changed only in a writing signed by both parties.

Severability. If a court finds any part of this Contract unenforceable, that part will be enforced to the extent the law allows, and the rest stays in effect.

Notices. Notices must be in writing and sent to the addresses above by personal delivery, certified mail or a nationally recognized courier.

Counterparts and e-signatures. This Contract may be signed in counterparts and by electronic signature, which has the same effect as an original.

| Owner | Contractor |

| --- | --- |

| Signature: Owner Signature | Signature: Contractor Signature |

| Name: Owner Printed Name | Name: Contractor Printed Name |

| Date: Owner Signing Date | Date: Contractor Signing Date |