"Construction Contract Template"

What Is a Construction Contract?

A Construction Contract is a legally binding document signed by a property owner and a contractor that records the details of construction work to be performed on the property. Generally, an agreement for construction establishes the scope of the work to be done and the main terms and conditions of the agreement.

Alternate Names:

  • Construction Agreement;
  • Building Agreement.

This document is a must if you need to hire a contractor to build a new property or renovate an already existing one, or if you, as a contractor, have to be in charge of building or renovating a property. Download a Construction Agreement template below or create a more personalized document using our online form builder.

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Types of Construction Contracts

The most common types of Construction Agreements are:

  1. Lump-Sum Construction Agreement. Negotiate the price for all work before construction begins.
  2. Cost Plus Building Agreement. The buyer agrees to cover all the expenses of the project, including materials and labor, even if the ultimate cost of the works is uncertain, and the contractor receives a fixed fee.
  3. Target Cost Construction Agreement. It records an approximate estimate of the project, and the parties agree to pay extra if the final cost of the works exceeds the initial expectations.
  4. Unit Price Construction Contract. This document includes the estimated price of items needed for construction, and the final price of the project can be known only when the work is over.

What to Include in a Construction Contract?

Construction Agreements should include the following information:

  1. The main terms of the agreement. Describe the purpose of the contract, enter the date and the names of the parties, the location and the name of the project.
  2. Scope of the work. List the tools, equipment, and materials that will be used to work on the project. Outline the construction process. Try to be as specific as possible to avoid future misunderstandings and disputes.
  3. Financial details. Write down the amount of money to be paid and the method of payment.
  4. Claims and disputes provision. Choose a jurisdiction for a potential lawsuit and decide with another party how to deal with possible disagreements that may occur in the future.
  5. Coverage information. Add the insurance information and provide the details on the contractor's license if it is required for certain types of work.
  6. Signatures of the parties and their contact details.

Obviously, the parties may negotiate other standard clauses they need - assigns and successors clause, severability, etc. If needed, you can include a projected construction schedule or warranties. The specific arrangements must be determined in accordance with the needs of both parties to the agreement.


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Construction Contract
This ​ C onstruction Contract (hereinafter referred to as the “Agreement”) is entered
into as of ____________________ by and between ___________________________,
with a mailing address of ________________________________________________
__________________________________ (hereinafter referred to as the “Customer”)
and ___________________________, with a mailing address of _________________
_________________________________ (hereinafter referred to as the “Contractor”),
collectively referred to as the “Parties”, both of whom agree to be bound by this
Agreement.
1. Construction Services. ​ T he ​ C ustomer wishes to obtain the Contractor’s services to
perform the following construction work:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
___________________________________ (hereinafter referred to as the “Services”).
Detailed plans and specifications to be attached to this Agreement.
The Services are to be performed at the following address:
_____________________________________________________________________
_____________________________________________________________________
___________________________________ (hereinafter referred to as the “Property”).
The Contractor agrees to furnish the labor, materials, and supplies necessary to
perform the Services in accordance with the terms and conditions contained in this
Agreement. Upon completion of the Services, the Contractor will remove all
materials, supplies, and other debris.
2. Changes in the Services. The Customer may request reasonable changes to the
Services described in Section 1. Any changes to the Services must be in writing and
signed by both the Contractor and the Customer. The Customer agrees that any
changes to the Services may result in additional charges and extend the Construction
Schedule described in Section 3.
Construction Contract
This ​ C onstruction Contract (hereinafter referred to as the “Agreement”) is entered
into as of ____________________ by and between ___________________________,
with a mailing address of ________________________________________________
__________________________________ (hereinafter referred to as the “Customer”)
and ___________________________, with a mailing address of _________________
_________________________________ (hereinafter referred to as the “Contractor”),
collectively referred to as the “Parties”, both of whom agree to be bound by this
Agreement.
1. Construction Services. ​ T he ​ C ustomer wishes to obtain the Contractor’s services to
perform the following construction work:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
___________________________________ (hereinafter referred to as the “Services”).
Detailed plans and specifications to be attached to this Agreement.
The Services are to be performed at the following address:
_____________________________________________________________________
_____________________________________________________________________
___________________________________ (hereinafter referred to as the “Property”).
The Contractor agrees to furnish the labor, materials, and supplies necessary to
perform the Services in accordance with the terms and conditions contained in this
Agreement. Upon completion of the Services, the Contractor will remove all
materials, supplies, and other debris.
2. Changes in the Services. The Customer may request reasonable changes to the
Services described in Section 1. Any changes to the Services must be in writing and
signed by both the Contractor and the Customer. The Customer agrees that any
changes to the Services may result in additional charges and extend the Construction
Schedule described in Section 3.
3. Construction Schedule. ​ T he ​ C ontractor will complete the Services in accordance
with the following schedule:
● Services Start Date: __________________________;
● Substantial (_____%) Completion Date: __________________________;
● Full Completion Date: __________________________.
The Customer agrees that all dates are subject to change if the Customer requests any
changes or additions to the Services. The full completion date is further subject to
weather conditions.
4. Compensation. ​ T he ​ C ustomer and the Contractor agree to the following Payment
and Payment Terms:
● The upfront fee for the Services shall be $________________;
● The fee upon the completion of the project shall be $________________;
● The fee for materials shall be $________________.
The Contractor agrees to provide the Customer with a breakdown of all costs (i.e.,
materials and labor) upon the Customer’s request.
5. Representations.
5.1. Contractor Representations. ​ T he ​ C ontractor is a duly licensed general
contractor in good standing, License #___________________. The Contractor will
perform the Services in compliance with all applicable laws, regulations, codes,
restrictive covenants, and homeowners’ association requirements.
5.2. Customer Representations. ​ T he ​ C ustomer is the legal owner of the Property, or
otherwise has authority to permit construction upon the Property. The requested
Services are in accordance with all applicable laws, regulations, codes, restrictive
covenants, and homeowners’ association requirements. The Customer has the
financial ability to pay the Contractor for the Services.
6. Obligations.
6.1. Contractor Obligations. ​ T he Contractor will obtain, at its own cost, all
necessary permits and approvals to perform the Services. The Contractor agrees to
provide the Customer with lien waivers, lien releases, and acknowledgment of full
payment upon receipt of each payment laid out in the Payment Schedule in Section 4
above. The Contractor will take all reasonable safety precautions in performing the
Services. The Contractor will comply with all applicable laws, ordinances, rules,
regulations, and orders of public authorities for the safety of persons and property.
6.2. Customer Obligations. The Customer will provide the Contractor, its employees,
agents, and subcontractors, reasonable access to the Property for the purpose of
performing the Services. The Customer agrees to keep the Property clear of all known
and potential hazards. The Customer further agrees to keep all pets out of the work
area of the Property.
7. Insurance. ​ T he ​ C ontractor warrants it is adequately insured for injury to its
employees and any others incurring loss or injury as a result of the acts of the
Contractor or its employees and subcontractors.
8. Subcontractors. The Contractor may engage subcontractors to perform work at its
discretion, provided that the Contractor shall fully pay any subcontractor and in all
instances remain responsible for the proper completion of this Agreement.
9.
Warranty.
The
Contractor
warrants
the
Services
for
_________________________
years
against
all
defects
in
materials
and
workmanship.
10. Events Beyond Contractor’s Control. ​ T he ​ C ustomer agrees that if the
Contractor is unable to complete the Services by the Completion Date because of
reasons that were not caused by the Contractor (i.e., availability of necessary supplies,
materials, etc.) or because of events beyond the Contractor’s control (such as labor
issues, fire, flood, acts of God, vandalism, etc.), the Contractor will not be deemed to
have breached this Agreement.
In the aforementioned case, the time for the Contractor to complete the Services will
be extended by the amount of time reasonably necessary for the Contractor to
complete the Services and at a schedule agreeable to the Parties. The time for the
Customer to pay the Contractor for the Services will be extended in the same manner.
11. Liability Waiver. If the Contractor, any of its employees, contractors, agents, or
the like are injured in the course of performing the Services, the Customer is exempt
from liability for those injuries to the fullest extent allowed by law.
12. Termination.
12.1. By Customer. ​ T he Customer can terminate the Agreement by giving written
notice:
(a) if the Contractor commits any material breach of this Agreement and fails
to correct the breach within ________________ days of notice of the breach; or
(b) ​ i f there is any repeated failure by the Contractor to provide the Services of
an acceptable standard and to the reasonable satisfaction of the Customer.
12.1. By Contractor. ​ T he Contractor can terminate the Agreement by giving written
notice:
(a) ​ i f the Customer fails to make the payments required and set forth in Section
4 within __________________ days of notice of failure to make a payment; or
(b) if the Customer commits any other material, non-financial breach and fails
to correct the breach within __________________ days of notice of the breach.
13. Legal Fees. In the event of a dispute resulting in legal action, the successful party
will be entitled to its legal fees, including, but not limited to its attorneys’ fees,
collection fees and the like.
14. Governing Law and Jurisdiction. ​ T he Parties agree that this Agreement shall be
governed by _______________________ law.
S tate
15. Entire Agreement. ​ T he Parties acknowledge and agree that this Agreement
represents the entire agreement between the Parties. If the Parties desire to change,
add, or otherwise modify any terms, they shall do so in writing to be signed by both
parties.
The Parties agree to the terms and conditions set forth above as demonstrated by their
signatures as follows:
CONTRACTOR
CUSTOMER
Name: ______________________
Name: ______________________
Signed: _____________________
Signed: _____________________
Date: _______________________
Date: _______________________
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