Lump Sum Contract
Lump Sum Contract
This Lump Sum Contract ("Contract") is entered into as of [Date], by and between [Your Company Name], hereinafter referred to as the "Client", and [Contractor's Name], hereinafter referred to as the "Contractor". The parties agree as follows:
1. Scope of Work
The Contractor shall perform the following work under the specifications provided by the Client:
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Demolition of existing structures on the site.
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Excavation and site preparation.
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Construction of a new two-story office building, including foundation, framing, roofing, and exterior finishing.
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Installation of plumbing, electrical, and HVAC systems.
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Interior finishing, including drywall, flooring, and painting.
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Landscaping and site beautification.
2. Contract Price
The total agreed-upon lump sum amount to be paid by the Client to the Contractor for the completion of the work shall be $100,000.00. This amount is inclusive of all taxes, fees, and charges.
3. Payment Terms
3.1 Method of Payment:
Payments shall be made via bank transfer, either by bank transfer or check.
3.2 Due Dates
Payment due dates for each installment are as follows:
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20% of the total contract price upon signing of the Contract.
Due date: [Insert Due Date]
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30% upon completion of demolition and site preparation.
Due date: [Insert Due Date]
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30% upon completion of structural work and installation of utilities.
Due date: [Insert Due Date]
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20% upon substantial completion and final inspection of the project.
Due date: [Insert Due Date]
3.2 Late Payment
A penalty of 1% of the outstanding balance shall be applied to any late payments exceeding 15 days from the due date.
4. Commencement and Completion Dates
The tasks and responsibilities outlined in this Contract are set to initiate on the specified date that we have agreed upon, or referred to as [Start Date]. It is crucial that all these tasks and obligations should be fulfilled and concluded by, or before, our settled [Completion Date]. Time plays a crucial role and is highly valued in successfully carrying out the deliverables and terms of this Contract.
5. Change Orders
If there are any modifications to be made concerning the scope of work, both parties involved must engage in a written agreement to verify their mutual consent on this matter. These alterations may lead to potential impacts on two primary aspects, namely the price of the contract and the projected timeline for completion of the task at hand. Consequently, these aspects must be aligned and attuned to the proposed changes in the scope of work.
6. Warranties
The Contractor provides a warranty and assures that for all the work executed under this Contract, the quality will be superior and satisfactory. Furthermore, the Contractor commits that there will be no flaws or imperfections in either the materials used or the workmanship for a minimum period of one year following the completion date of the work.
7. Indemnification
The party acting as the Contractor hereby explicitly assures and accepts responsibility to provide recompense and protection, as well as not putting the party of the Client at any fault or burden, from any potential legal disputes, detrimental effects, economic depreciation, or any legal responsibilities that may come to light as a result of the action, movement, and execution of tasks falling under the Contractor's role, all under the stipulations and responsibilities entailed within this Contract.
8. Termination
Either party may terminate this Contract upon written notice if the other party breaches any material term of the Contract. In the event of termination, the terminating party shall be entitled to any remedies available at law.
9. Governing Law
This contract shall be governed by and construed under the laws of the State of [STATE].
10. Entire Contract
This Contract constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter herein.
11. Signatures
IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date first above written.
[Contractor's Name]
[Date Signed]
[Your Name]
[Date Signed]
