Real Estate Construction Agreement

This Real Estate Construction Agreement (hereinafter referred to as the "Agreement") is made and entered into on [Month Day, Year], by and between [Your Company Name], with its principal office located at [Your Company Address] (hereinafter referred to as the "Contractor"), and [Your Client Name], with its principal dwelling located at [Your Client Address] (hereinafter referred to as the "Owner").

1. Scope of Work

The Contractor hereby agrees to provide all labor, materials, machinery, tools, equipment, and services necessary for the construction, renovation, or repair (hereinafter referred to as the "Construction Services") of the property situated at [Property Address] (the "Property"), owned by the Owner. The detailed scope of work is described as follows: [Description of the construction project, including any specific structures to be built, renovations to be made, or repairs to be conducted].

2. Responsibilities

Contractor Responsibilities:

• The Contractor is responsible for obtaining all necessary permits, licenses, and approvals required to complete the Construction Services in compliance with local, state, and federal laws.

• The Contractor shall hire competent subcontractors as necessary to complete the Construction Services. All subcontractors must be approved by the Owner.

• The Contractor shall ensure that the Construction Services are completed within the timeline specified in this Agreement and shall promptly communicate any potential delays to the Owner.

Owner Responsibilities:

• The Owner shall grant the Contractor and its agents access to the Property as required to perform the Construction Services.

• The Owner agrees to make payments in accordance with the Payment Schedule outlined in this Agreement.

• The Owner shall provide any necessary approvals or decisions in a timely manner to avoid delaying the project.

3. Project Timeline

The Construction Services shall commence on [Start Date] and are expected to be completed by [End Date], subject to any adjustments mutually agreed upon in writing by both parties. The Contractor is committed to adhering to this schedule but shall inform the Owner of any unforeseen delays or necessary extensions.

4. Payment Schedule

The total estimated cost for the Construction Services as agreed upon by both the Contractor and the Owner is set at [Total Project Cost]. This estimate is based on the detailed scope of work outlined in this Agreement and is subject to adjustment only with mutual consent due to changes in project scope or unforeseen additional expenses.

4.1. Detailed Payment Schedule

Initial Deposit: An initial deposit of [Initial Deposit Amount] is required upon the execution of this Agreement to cover the preliminary costs of materials and labor. This deposit is due on [Deposit Due Date].

Progress Payments: Progress payments shall be made based on the completion of predefined project milestones. These milestones and their corresponding payment amounts are as follows:

• Milestone 1 (e.g., completion of foundation): [Amount], due on [Due Date].

• Milestone 2 (e.g., framing completion): [Amount], due on [Due Date].

• Additional milestones as defined in the scope of work, each with specified payment amounts and due dates.

Final Payment: The final payment of [Final Payment Amount], constituting the remaining balance of the total project cost, is due upon substantial completion of the Construction Services and before final handover to the Owner.

All payments shall be made in U.S. dollars via [Preferred Payment Method]. Changes to the project scope or additional expenses must be pre-approved in writing by the Owner. Such changes may result in an adjustment to the final project cost and shall be documented in a signed amendment to this Agreement.

5. Quality Standards

The Contractor is committed to delivering Construction Services that meet the highest quality standards in the industry. This commitment extends to all materials used and all work performed under this Agreement. Specifically, the Contractor guarantees the following:

• Materials: All materials procured and used during the construction process shall be new, of high quality, and suitable for their intended purpose. Materials shall comply with all relevant industry standards and regulations.

• Workmanship: All work performed by the Contractor, its employees, and subcontractors shall be executed proficiently and in accordance with the best practices of the construction industry. The Contractor shall ensure that all aspects of the Construction Services are carried out to achieve the desired outcomes as specified in the scope of work.

Warranty:

The Contractor provides a warranty for all construction work performed under this Agreement, valid for a period of [Warranty Period, e.g., one year] from the date of project completion. During this period, the Contractor shall, at no additional cost to the Owner, correct any defects in materials or workmanship brought to the Contractor's attention. This warranty does not cover damages or defects resulting from misuse, neglect, or alterations made by the Owner or third parties without the Contractor's prior written consent.

It is the responsibility of the Owner to notify the Contractor in writing of any defects, malfunctions, or performance failures in the Construction Services that are discovered during the warranty period. Upon such notification, the Contractor shall promptly rectify the issue, ensuring the integrity and functionality of the construction work are maintained.

6. Dispute Resolution

• Should any disputes arise related to this Agreement or the execution of the Construction Services, both parties agree to seek resolution through direct negotiation.

• If the dispute cannot be resolved through negotiation, both parties agree to submit to binding arbitration in accordance with the prevailing laws of [State]. The decision of the arbitrator shall be final and binding on both parties.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date first above written.

FOR THE CONTRACTOR:

[Contractor's Name]

[Your Company Name]

[Month Day, Year]

FOR THE OWNER:

[Owner's Name]

[Month Day, Year]

This Agreement sets forth the entire understanding of the parties and supersedes all prior agreements, whether written or oral, concerning the subject matter herein. Any modifications to this Agreement must be in writing and signed by both parties.

Real Estate Templates @ Template.net