Free Contractor Construction Contract Template
Contractor Construction Contract
This Contractor Construction Agreement (the "Agreement") is made and entered into as of [Month Day, Year] by and between:
[Your Company Name], a [State] corporation, with a principal place of business located at [Your Company Address] (the "Contractor"), and
[Client's Full Name], residing at [Client's Address] (the "Owner").
RECITALS
WHEREAS, the Owner desires to have certain construction services performed at [Site Address] (the "Project Site"), and;
WHEREAS, the Contractor is duly qualified and agrees to perform the work described herein, under the terms and conditions of this Agreement;
NOW, THEREFORE, for and in consideration of the mutual covenants and promises herein contained, the parties hereto agree as follows:
1. SCOPE OF WORK
The Contractor agrees to furnish all labor, materials, tools, equipment, and services necessary to perform the work as outlined in the Scope of Work, attached hereto as Exhibit A (the "Work"). The Work includes, but is not limited to, the construction, installation, and completion of [brief description of construction project], as specified by the Owner and approved by local authorities. Any additional work, not outlined in the Scope of Work, must be agreed upon in writing by both parties and may result in a change order, as described below.
2. CONTRACT PRICE
The Owner agrees to pay the Contractor the total sum of [$0], subject to modifications as outlined in any written change orders. This price includes all materials, labor, tools, equipment, and all other expenses necessary to complete the Work in accordance with this Agreement.
Payment Schedule
Deposit: [$0] upon execution of this Agreement.
Progress Payments: [$0] upon completion of each construction phase as outlined in the payment schedule attached hereto as [Exhibit B].
Final Payment: [$0] upon completion of the Work, final inspection, and written acceptance by the Owner.
All payments are due within [0] days of the receipt of invoice. Any payment not made within [0] days shall incur a late charge of [0]% per month on the unpaid balance.
3. COMMENCEMENT AND COMPLETION OF WORK
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Commencement Date: The Contractor shall commence the Work on or before [Month Day, Year].
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Completion Date: The Work shall be substantially completed by [Month Day, Year], barring any delays caused by conditions beyond the Contractor’s control.
Time is of the essence in this Agreement. If the Contractor fails to complete the Work within the time frame specified, the Contractor will be liable for liquidated damages in the amount of [Amount] per day of delay beyond the completion date.
4. CHANGE ORDERS
Any change or modification to the Work or the scope of this Agreement must be documented in a Change Order. A Change Order must be agreed upon in writing by both the Contractor and Owner before any additional work begins. Change Orders will outline the new scope of work and any adjustments to the contract price or completion schedule.
5. RESPONSIBILITIES OF THE CONTRACTOR
The Contractor shall:
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Compliance with Laws: Ensure all work complies with federal, state, and local laws, ordinances, and regulations.
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Licensing and Permits: Maintain all necessary licenses, permits, and bonds to perform the Work legally.
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Subcontractors: The Contractor may hire subcontractors to perform portions of the Work, but shall remain responsible for all work completed under this Agreement.
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Quality of Work: Perform all work in a professional and workmanlike manner, following industry standards.
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Safety: Maintain a safe work environment, and comply with all OSHA (Occupational Safety and Health Administration) regulations, as well as any other applicable safety regulations.
6. RESPONSIBILITIES OF THE OWNER
The Owner shall:
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Access to Property: Provide the Contractor and its agents with access to the Project Site during normal working hours.
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Timely Payment: Make timely payments as outlined in Section 2 of this Agreement.
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Site Preparation: Ensure that the Project Site is adequately prepared for the commencement of work, including removal of any obstructions or hazards, unless specified as part of the Contractor’s duties.
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Inspections: Cooperate with the Contractor to facilitate necessary inspections, approvals, or permits required for the Project.
7. INSURANCE AND BONDS
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Insurance: The Contractor shall maintain commercial general liability insurance, workers' compensation insurance, and automobile liability insurance in amounts adequate to protect the Owner and Contractor from any loss or damage.
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Bonds: Upon request, the Contractor will provide a performance bond and payment bond, each in an amount equal to the contract price, to secure the performance of the Work and payment to subcontractors and suppliers.
8. WARRANTY
The Contractor warrants that the materials and workmanship provided under this Agreement will be free from defects for a period of [0 years] from the date of final completion and acceptance. In the event that defects appear during the warranty period, the Contractor agrees to repair or replace such defects at no additional cost to the Owner, unless the defects are caused by misuse, neglect, or failure of the Owner to properly maintain the Work.
9. TERMINATION
Either party may terminate this Agreement upon written notice if:
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The other party materially breaches any of its obligations and fails to cure such breach within [0] days after written notice of the breach.
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The Project is abandoned for [0] days or more.
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The Owner or Contractor is unable to proceed with the Work due to unforeseen circumstances such as labor strikes, fire, flood, or other Acts of God.
Upon termination, the Owner shall pay the Contractor for all work completed up until the termination date, and the Contractor shall return any unused materials to the Owner or be reimbursed for those materials.
10. DISPUTE RESOLUTION
Any dispute arising under or in connection with this Agreement shall first be addressed by negotiation between the parties. If the dispute cannot be resolved through negotiation, the parties agree to mediate the dispute with a neutral third party. If mediation fails, the dispute will be submitted to binding arbitration in accordance with the rules of the American Arbitration Association.
11. INDEMNIFICATION
The Contractor agrees to indemnify and hold the Owner harmless from any claims, damages, or lawsuits arising out of the Contractor's performance of the Work, including damages to the Project Site or injury to persons or property. The Owner agrees to indemnify and hold the Contractor harmless from any claims, damages, or lawsuits arising from the Owner’s failure to comply with local laws, permits, or site conditions.
12. ENTIRE AGREEMENT
This Agreement, including all exhibits and attachments, constitutes the entire understanding between the parties regarding the subject matter of this Agreement and supersedes all prior discussions, negotiations, and agreements, whether oral or written.
13. GOVERNING LAW
This Agreement shall be governed by and construed in accordance with the laws of the State of [State], without regard to its conflict of law principles.
14. SIGNATURES
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.
[Your Company Name] (Contractor)
By:
[Your Name]
[Title]
[Month Day, Year]
[Owner's Name] (Owner)
By:
[Full Name]
[Month Day, Year]