Simple Church Construction Contract
Simple Church Construction Contract
This Construction Contract ("Contract") is made and entered into as of [Month Day, Year], by and between [Your Company Name], a religious institution, hereinafter referred to as the "Church", and [Your Partner Company Name], a construction firm with its principal place of business located at [Your Partner Company Address], hereinafter referred to as the "Construction Company".
I. Scope of Work
This section defines the comprehensive scope of work to be performed by the Construction Company, detailing the specific responsibilities, tasks, and deliverables to ensure a mutual understanding of the project's requirements and outcomes.
A. Project Description
The Construction Company agrees to construct a new church building located at [Your Company Address]. The project will include the construction of:
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Main Sanctuary: Five thousand (5,000) square feet with a seating capacity of five hundred (500) people.
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Classrooms: Ten (10) classrooms, each four hundred (400) square feet, designed for educational purposes.
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Administrative Offices: Five (5) offices, each two hundred fifty (250) square feet, for church staff.
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Fellowship Hall: Three thousand (3,000) square feet for community gatherings.
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Restrooms: Four (4) restroom facilities, two (2) for each gender, with a total of twenty (20) stalls.
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Parking Facilities: A parking lot accommodating one hundred fifty (150) vehicles with appropriate lighting and landscaping.
B. Specifications
The construction will adhere to the architectural plans and specifications provided by the Construction Company's architect and approved by the Church. The Construction Company must ensure that all work complies with the local building codes, safety regulations, and the highest industry quality standards. The use of sustainable and energy-efficient materials and practices is encouraged.
II. Contract Price and Payment Terms
This section outlines the agreed-upon financial terms, including the total contract price, itemized costs, and the detailed payment schedule to ensure transparency and proper financial planning throughout the project's duration.
A. Contract Price
The total contract price for the construction project is three million five hundred thousand dollars ($3,500,000), which includes all materials, labor, equipment, and associated costs. Any additional costs due to unforeseen circumstances or changes in scope will be addressed through formal change orders.
B. Payment Schedule
Payments will be made to the Construction Company according to the following schedule:
|
Percentage of Total Payment |
Amount |
Due Date |
|---|---|---|
|
10% |
$350,000 |
Upon signing the Contract. |
|
20% |
$700,000 |
Upon completion of the foundation. |
|
30% |
$1,050,000 |
Upon completion of the structural framework. |
|
20% |
$700,000 |
Upon completion of the roofing and exterior. |
|
15% |
$525,000 |
Upon substantial completion of the interior work. |
|
5% |
$175,000 |
Upon final inspection and acceptance by the Church. |
Payments will be made within fifteen (15) days of the completion of each milestone, upon receipt of an invoice from the Construction Company.
III. Time of Performance
This section specifies the timeline for the commencement and completion of the project, detailing critical milestones and deadlines to ensure that both parties are aligned on expectations and delivery schedules.
A. Commencement and Completion
The Construction Company shall commence work on [Month Day, Year], and shall complete the project no later than [Month Day, Year]. Time is of the essence in this Contract, and any delays must be promptly communicated and justified in writing to the Church.
IV. Change Orders
This section addresses the procedure for any modifications to the original scope of work, specifications, or contract price, ensuring that changes are managed systematically, documented, and agreed upon by both parties to avoid misunderstandings.
A. Process for Changes
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Any changes to the scope of work, specifications, or contract price must be documented in a written change order signed by both the Church and the Construction Company.
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Change orders must detail the nature of the change, the reason for the change, and any adjustments to the contract price and schedule.
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The Construction Company must submit a change order request within five (5) business days of identifying the need for a change. The Church will respond to the request within five (5) business days.
V. Warranties and Representations
This section outlines the guarantees made by the Construction Company regarding the quality of work and materials, ensuring that the Church receives a building that meets or exceeds industry standards and provides long-term satisfaction and performance.
A. Workmanship Warranty
The Construction Company warrants that all work will be performed in a good and workmanlike manner, free from defects, and in accordance with industry standards. This warranty shall remain in effect for two (2) years from the date of final acceptance by the Church.
B. Material Warranty
The Construction Company warrants that all materials used in the construction will be new, of good quality, and free from defects. This warranty shall remain in effect for two years from the date of final acceptance by the Church. Any defective materials will be replaced at no additional cost to the Church.
VI. Indemnification and Insurance
This section details the obligations of the Construction Company to maintain adequate insurance coverage and indemnify the Church, ensuring protection against potential liabilities and claims that may arise during the construction process.
A. Indemnification
The Construction Company agrees to indemnify, defend, and hold harmless the Church from any and all claims, damages, losses, and expenses, including attorney's fees, arising out of or resulting from the performance of the work, provided that such claim, damage, loss, or expense is attributable to bodily injury, sickness, disease, or death, or to injury to or destruction of tangible property, caused by the negligent acts or omissions of the Construction Company, its subcontractors, or anyone directly or indirectly employed by them.
B. Insurance Requirements
The Construction Company shall maintain the following insurance coverage:
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General Liability Insurance: Minimum coverage of two million dollars ($2,000,000) per occurrence.
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Workers' Compensation Insurance: As required by the state law.
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Automobile Liability Insurance: Minimum coverage of one million dollars ($1,000,000) per accident for any vehicles used in the performance of the work.
The Construction Company shall provide proof of such insurance to the Church prior to the commencement of work and shall ensure that the Church is named as an additional insured on all policies.
VII. Termination
This section describes the conditions under which the Contract may be terminated by either party, ensuring that both parties understand their rights and obligations in the event of termination and the associated procedures.
A. Termination for Convenience
The Church may terminate this Contract at any time for convenience, upon providing thirty (30) days' written notice to the Construction Company. In such event, the Church shall pay the Construction Company for work performed up to the date of termination, including any demobilization costs.
B. Termination for Cause
If either party fails to perform any of its obligations under this Contract, the non-breaching party may terminate the Contract upon providing written notice of the breach and a reasonable opportunity to cure, not less than fifteen (15) days. If the breach is not cured within the specified period, the non-breaching party may terminate the Contract and seek any available legal remedies.
VIII. Dispute Resolution
This section outlines the process for resolving disputes that may arise under the Contract, ensuring that conflicts are managed efficiently, fairly, and in a manner that minimizes disruption to the project.
A. Mediation and Arbitration
Any disputes arising under this Contract shall first be submitted to mediation, with a mediator mutually agreed upon by both parties. If mediation is unsuccessful, the dispute shall be resolved by binding arbitration in accordance with the rules of the American Arbitration Association. The arbitration shall take place in [State], and the decision of the arbitrator(s) shall be final and binding on both parties.
IX. General Provisions
This section includes various standard clauses that govern the interpretation and enforcement of the Contract, ensuring clarity, legal completeness, and mutual understanding between the parties.
A. Governing Law
This Contract shall be governed by and construed in accordance with the laws of the state of [State Name], without regard to its conflict of law principles.
B. Entire Agreement
This Contract constitutes the entire agreement between the parties and supersedes all prior negotiations, representations, or agreements, whether written or oral. Any amendments or modifications to this Contract must be in writing and signed by both parties.
C. Amendments
No amendment or modification of this Contract shall be effective unless in writing and signed by both parties. Any such amendments shall be deemed to be an integral part of this Contract.
D. Severability
If any provision of this Contract is found to be invalid or unenforceable, the remaining provisions shall continue in full force and effect. The parties agree to replace any invalid or unenforceable provision with a valid and enforceable provision that achieves the intended purpose of the original provision.
E. Notices
All notices required or permitted under this Contract shall be in writing and shall be deemed delivered when delivered in person, or deposited in the United States mail, postage prepaid, or sent by courier or certified mail, addressed to the parties at their respective addresses set forth above. Notices shall be effective upon receipt.
IN WITNESS WHEREOF, the parties hereto have executed this Construction Contract as of the day and year first above written.
Signature of the Church:
[Your Name]
[Job Title]
[Your Company Name]
[Month Day, Year]
Signature of the Construction Company:
[Name]
[Job Title]
[Your Partner Company Name]
[Month Day, Year]
