Construction Term Sheet
Construction Term Sheet
I. Project Overview
[Your Company Name], in collaboration with [Project Owner Name], proposes a construction project for the development of a luxury condominium complex along the riverfront downtown. The goal of this venture is to build a modern residential complex comprising 100 units with amenities such as a fitness center, rooftop garden, and river-view balconies. The estimated timeline for completion is 18 months, with a projected budget of $25 million.
II. Key Details
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Location: [Location]
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Scope of Work: Construction of a 10-story residential complex
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Key Milestones:
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Obtain building permits by [Month, Year]
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Commence construction by [Month, Year]
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Complete structural work by [Month, Year]
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III. Parties Involved
[Your Company Name] (the "Contractor") will undertake the construction project. The "Project Owner," [Project Owner Name], will oversee the development and provide necessary approvals. The agreement outlines the roles and responsibilities of each party.
IV. Roles and Responsibilities
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Contractor:
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Execute construction as per architectural plans.
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Provide skilled labor, construction materials, and equipment.
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Ensure compliance with safety regulations and quality standards.
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Project Owner:
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Approve final construction and design plans.
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Secure required permits and regulatory approvals.
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Monitor project progress and address any issues.
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V. Financial Terms
The financial terms of this project are as follows:
|
Item |
Amount (USD) |
|---|---|
|
Construction Costs |
$20,000,000 |
|
Contingency Reserve |
$2,000,000 |
|
Design Fees |
$1,000,000 |
|
Project Management |
$1,500,000 |
|
Other Costs |
$500,000 |
|
Total |
$25,000,000 |
VI. Payment Schedule
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Initial Payment: 10% ($2,500,000) upon contract signing.
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Progress Payments: Based on project milestones.
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30% ($7,500,000) upon completion of structural work.
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30% ($7,500,000) upon completion of exterior finishing.
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20% ($5,000,000) upon substantial completion.
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Final Payment: 10% ($2,500,000) upon final inspection and project acceptance.
VII. Project Specifications
The project specifications include detailed requirements for construction, materials, and quality standards. Key specifications are outlined below:
Construction Materials
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High-quality reinforced concrete for structural components.
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Energy-efficient glass for windows and balconies.
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Sustainable and durable building materials for interior finishes.
Quality Standards:
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Compliance with local building codes and regulations.
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Regular quality inspections and testing during construction.
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Use of certified contractors and suppliers.
VIII. Legal and Regulatory
Both parties agree to comply with applicable laws, regulations, and industry standards throughout the project lifecycle. Any disputes or claims will be resolved per the contract's agreed terms.
Key Legal Points
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Insurance Requirements: Contractor to maintain comprehensive liability insurance.
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Indemnification Clauses: Clear provisions outlining indemnity for both parties.
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Force Majeure Conditions: Defined circumstances for potential project delays or interruptions.
