Construction Agreement Template

If you want to hire a contractor to build, remodel or renovate real estate property, a construction contract agreement helps you avoid conflict and misunderstanding. Other names for the contract document include construction agreement, construction management agreement, service agreement for construction, and construction services contract. Within the contract, you break down all work you want done on your property or land. Agreements should list everyone involved in the project, including subcontractors your contractor works with. Also, list the project’s expected date of completion and how much the undertaking costs.

Some of the most common general elements found in almost every document include the property owner, contractor’s name or business name, worksite address, work description, warranties, project changes, permits/licenses and starting and completion dates. Contractors often create blueprints, designs and exhibits for individual projects, so include those supplementary materials in the contract, if you have them.

You may also add supplementary elements to your document. For example, if a dispute arises, how would you like to resolve the issue before taking the matter to court? If you encounter project delays, how much should the contractor pay you for every day that the job remains at a standstill? If you want to inspect construction during the project to make sure everything meets contract terms, include that stipulation in the document.

No matter how simple or intricate your construction project, you want the results to either match or succeed your expectations. Construction contracts ensure that you and your contractor understand the finer details and overall nature of your job. Agreements also define who bears responsibility for buying fixtures, obtaining licenses and permits, and providing construction materials. Construction may require drinking water for workers and temporary utilities provided by generators, both of which you can include in your document, so you and your contractor know who must pay resulting costs. A thorough contract covers and accounts for all eventualities, so everyone has peace of mind and a proper understanding of events and situations.

The main reason to create a construction agreement is to protect your rights. Imagine a contractor suddenly abandoning your project without a word about whether or when you can expect work to resume. Alternatively, while your contractor may complete the job, she or he may demand extra payment for changes that you did not agree to. With a properly written contract in place, you save yourself a lot of frustration and money. Further, legal documents protect contractors just as well as they do their clients. Start construction work with all parties understanding each other’s responsibilities, expectations, schedules, and obligations. Even if the contractor is a friend or family member, do yourself a favor and get an agreement in place.

A solid construction agreement includes several major elements. Here are a few details that deserve a spot in your document:

• Contractor details List the contractor’s name or business name, license number, business address, and phone number.
• Work description Detail the work that you and the contractor agreed upon, including minor details, so all parties understand their obligations and responsibilities.
• Payment schedule Besides listing the full project amount, include any payment schedule you worked out with your construction professional. Add dates and project progress that initiates a payment.
• Timeline or schedule You likely worked out a construction schedule with your contractor, so include it in the agreement. Besides the end date for the entire project, ask your contractor about deadlines for specific milestones, such as finishing certain rooms or installing specific systems.
• Licenses, permits, and authorizations Include your contractor’s license number and an image of her or his Certificate of Insurance. Your project may require permits to meet local and state requirements. Note in your document whether you expect your contractor to procure those.
• Termination clause There may come a point in your construction project where you or your constructor wishes to terminate the agreement. This clause should stipulate the conditions that trigger termination.
• 7: Project changes In case things do not go according to plan, devote a section of your document to describing how to navigate project modifications. For instance, must changes require your written approval?

1 What is a Construction Contract Agreement?

2 What is a Construction Contract Agreement used for?

3 Why should you use a Construction Contract Agreement?

4 How to write a Construction Contract Agreement?

5 How to fill out a Construction Contract Agreement with PDFSimpli in five steps?

6 Construction Contract Agreement frequently asked questions

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6.2 Does a Child Travel Consent Form Need To Be Notarized?

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