Home Remodeling/Construction Contract Form - Minnesota

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<insert Name and logo and address>
Minnesota Contractor License No. <>
HOME REMODELING/CONSTRUCTION CONTRACT
Date ____________, 20___
CUSTOMER NAME(S):
__________________________________________________________________________
__________________________________________________________________________
CUSTOMER MAILING ADDRESS:
__________________________________________________________________________
__________________________________________________________________________
CUSTOMER TELEPHONE: Home ___________________________________________
Business _________________________________________
Cell ______________________________________________
CUSTOMER FACSIMILE: ___________________________________________________
CUSTOMER EMAIL ADDRESS: ______________________________________________
JOB LOCATION (the “Home”): ________________________________________________
___________________________________________________________________________
CUSTOMER (ALSO REFERRED TO AS “YOU”) AND <>, (REFERRED TO AS BUILDER,
US OR WE) AGREE AS FOLLOWS:
___________________________________________________________________________
BUILDER WORK.
Builder agrees to perform the following work (attach dated plans and dated specifications,
if any, to this Contract):
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
______________________________________________________ (the “Work”).
©2004 Rinke Noonan
1
<insert Name and logo and address>
Minnesota Contractor License No. <>
HOME REMODELING/CONSTRUCTION CONTRACT
Date ____________, 20___
CUSTOMER NAME(S):
__________________________________________________________________________
__________________________________________________________________________
CUSTOMER MAILING ADDRESS:
__________________________________________________________________________
__________________________________________________________________________
CUSTOMER TELEPHONE: Home ___________________________________________
Business _________________________________________
Cell ______________________________________________
CUSTOMER FACSIMILE: ___________________________________________________
CUSTOMER EMAIL ADDRESS: ______________________________________________
JOB LOCATION (the “Home”): ________________________________________________
___________________________________________________________________________
CUSTOMER (ALSO REFERRED TO AS “YOU”) AND <>, (REFERRED TO AS BUILDER,
US OR WE) AGREE AS FOLLOWS:
___________________________________________________________________________
BUILDER WORK.
Builder agrees to perform the following work (attach dated plans and dated specifications,
if any, to this Contract):
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________
______________________________________________________ (the “Work”).
©2004 Rinke Noonan
1
All plans and specifications remain Builder s property and are not sold to Customer under
this Contract.
CUSTOMER WORK, IF ANY.
Customer and Builder have agreed that Customer will do or supply the following work:
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
(“Customer Work”).
Customer understands that Customer s Work must be completed within the time
specified in the written notice which Builder will deliver to Customer at least fifteen (15)
days before Customer s Work is to be completed. Such written notice to Customer is
incorporated by reference and made a part of this Contract. Customer agrees to pay
Builder all costs for any delay caused by Customer not completing Customer s Work.
Customer may not hire outside contractors or suppliers to do any of Customer s Work
unless Builder first agrees in writing. Builder is not responsible for any of Customer s
Work provided by Customer or Customer s subcontractors or suppliers, and Builder will
not warranty any of Customer s Work performed by Customer or Customer s
subcontractors or contractors.
CHANGES TO THE WORK (CHANGE ORDERS).
Written Change Order Required. Customer understands that there are no oral
agreements between Customer and Builder. Everything Customer expects Builder to do
has been included, in writing, in this Contract. Nothing in this Contract can be changed
unless it is changed in writing on a separate Change Order form and signed by both
Customer and Builder. If there is a discrepancy between documents, Change Orders shall
take precedence over this Agreement.
Change Order Fee and Payment. Builder may charge Customer a $200.00
administrative fee per Change Order. Change Order fees are intended to cover Builder s
additional administrative and related costs, are non-refundable, and are not credited
toward other amounts that Customer owes Builder. If Builder initiates a Change Order
because of concealed conditions, Builder will not charge a Change Order fee. Payment
for each Change Order is due upon completion of the Change Order work and Builder s
submittal of an invoice to Customer.
Limits on Change Orders. Because the range of possible changes Customer may
request is unlimited, Builder does not agree to accept all proposed Change Orders. In
each case, Builder will review the requested Change Order and inform Customer whether
Builder will accept the Change Order, and if so, Builder will inform Customer of the
©2004 Rinke Noonan
2
amount of the Change Order s cost. Builder has an absolute right to reject any requested
Change Order for any reason including, without limitation: (1) Builder believes the
change requested will create an unreasonable delay in the Work or may result in a
condition which is not structurally sound or does not satisfy Builder s standards of
material or workmanship; (2) Customer fails to pay the Change Order fee plus design
expenses, if any; (3) Customer fails to pay a Change Order deposit, if required by Builder;
or (4) Customer fails to accept the price increase or decrease determined by Builder.
PAYMENT TERMS.
Customer agrees to pay Builder $___________________ for the Work under this
Agreement. Payment will be as follows: $________________ Builder Deposit;
___________________________________________________________________
___________________________________________________________________
The price for the Work includes all labor, materials, building permits, temporary power,
and
____________________________________________________________________
____________________________________________________________________
____________________________________________________________________.
Customer will get the money to pay the Builder for the Work from:
____________________________________________________________________.
This Agreement is NOT contingent upon Customer obtaining money from the above
referenced source.
DOWN PAYMENTS/DEPOSITS.
Any money Customer pays Builder is considered a non-refundable, construction deposit
which Builder may deposit into its operating account and apply towards Builder s cost to
complete the Work.
1.
CUSTOMER CREDIT REPRESENTATIONS.
Customer agrees that Builder may investigate Customer s credit and contact bank
references to confirm Customer s ability to pay the amounts due under this Contract.
Customer s signature on this Contract attests to Customer s financial responsibility,
ability and willingness to pay in accordance with the terms of this Contract. Customer
represents to Builder that Customer has no plans to file bankruptcy or seek other
protection from Customer s creditors, that all of the information in this Contract is
correct, and that Customer has read and understands this Contract.
©2004 Rinke Noonan
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2.
NONPAYMENT.
Interest. If Customer fails to make any payment under this Contract, interest will accrue
on all unpaid amounts at the rate of 1.5% per month, or the highest amount allowed by
law, whichever is less.
Attorney s Fees. If Builder is required to incur costs or attorneys fees to enforce this
Contract s payment terms, such amounts will be added to the amounts owed by Customer
to Builder.
Returned Checks. Builder will charge a $25.00 service fee for all returned checks.
Suspension of Work for Non-payment. If Customer fails to make any payments due to
Builder under this Contract s terms, Builder may stop work without further notice.
Customer will be liable to Builder for all payments due up to the time work is stopped,
and for all losses sustained by Builder on materials, machinery, equipment or tools,
overhead, profit, soft costs and damages. Builder will only restart work after Customer
has paid all money due Builder and Builder is satisfied that Customer has the ability to
pay for the remaining work.
Other Builder Remedies for Non-payment. If Customer fails to make progress
payments or other amounts due to Builder under this Contract, Builder will have the right
to (1) terminate this Contract, (2) retain all deposits, fee and progress payments Customer
has made, (3) place liens upon the Home for payment of any other amounts owed, and (4)
foreclose any liens placed on the Home if the amounts due, including costs and interest,
are not paid in full. Builder s exercise of any option shall not preclude the exercise of the
other options.
3.
CUSTOMER NON-COOPERATION.
Builder may suspend the Work upon the occurrence of any of the following: (1) Builder
reasonably believes that Customer is not cooperating in completing the Work, (2)
Customer places unreasonable demands on Builder or Builder s subcontractors, (3)
Customer fails or refuses to furnish Builder with access to the Home, (4) Customer fails
to provide any product selections or other information which Builder deems necessary to
proceed, or (5) Customer has not or is not complying with any of this Contract s terms.
Upon notice of suspension of the Work for any of the above reasons, Customer must
provide Builder with assurances satisfactory to Builder of Customer s willingness and
ability to meet all of Customer s obligations under this Contract. If the Work has stopped
for any reason for more than 30 days, Builder may terminate this Contract and recover
from Customer, payment for all work completed, and for all losses sustained by the
Builder on all materials, machinery, equipment or tools, overhead, soft costs, profit and
damages.
©2004 Rinke Noonan
4
4.
CUSTOMER ALLOWANCES.
Allowances Provided to Customer. Allowances for certain work and materials, such as
plumbing fixtures, electrical fixtures, trim, hardware and flooring, may be included in the
total price set out in this Contract. These allowances are based upon Customer s
specifications and information made available to Builder at the time of entering this
Contract. During construction, Builder will ask Customer to select the specific item(s)
included in the allowance.
Additional Costs Are Customer s Responsibility. If the cost of Customer s selection(s)
exceeds the applicable allowance amount, Customer will pay the additional cost to
Builder at Closing. If the actual cost of Customer s selection is less than the applicable
allowance amount, Builder will give Customer a credit at Closing. Customer is
responsible to monitor Customer s use of allowances.
5.
TIME.
Builder agrees to start work on or before ______________, 20___, and to substantially
complete the Work within ____ months after starting construction, subject to delays
caused beyond Builder s control including delays caused by Customer or Customer s
Lender. Customer will not be entitled to any compensation for Builder s failure to start
or complete the Work by the time established.
6.
TIME DELAYS.
Delays After Signing Contract. If the start of the Work is delayed more than sixty (60)
days from this Contract s date due to delays caused by Customer or Customer s lender, or
for any reason outside of Builder s control, Builder will have the right to increase the total
price under this Contract by an amount calculated at a rate of 1.5% per month, or the
highest rate permitted by law, whichever is less, beginning on the 61st day of delay. If the
cost of materials or labor increases more than 5% before the Work is started, Builder may
terminate this Contract and return any down payment to Customer.
Delays After Start of Construction. If the Work is delayed for more than three (3) days
by Customer or Customer s lender after Builder has started the Work, Builder will have
the right to increase the total purchase price by an amount calculated at a rate of 1.5% per
month, or the highest rate permitted by law, whichever is less, beginning on the 4th day
of delay. Any additional amounts due because of delays will be added to the next
progress payment, and Customer s failure to pay these additional amounts will be
considered an event of default.
Timely Customer Selections. Customer agrees to make timely selections of all
allowance items, if applicable. Any delay by Customer in making the selections will
©2004 Rinke Noonan
5

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