Here’s what a typical construction contract agreement looks like:ĭownload MS Word 2. If you are looking to rent or resell your property after construction is completed, create a custom Lease Agreement or Real Estate Purchase Agreement. In addition, you can also specify how the worksite should be maintained, including supervision of the workers, storage of materials, and where waste can be dumped.Ī Construction Contract Agreement may also be called: hurricanes, earthquakes, shortage of materials, change in contract plans).
Warranties: How long will the contractor warrant that his or her work is free from material defects.Work changes: How any changes to the agreed upon work will be handled once construction has begun.Subcontracts: Whether the contractor will hire subcontractors to help perform part of the contractor’s obligations.Licensing and permits: Which party will be responsible for obtaining any required licenses and permits.Starting and completion dates: The dates the contractor must start construction and have the construction substantially completed by.Materials and labor: Which party will supply and pay for the cost of materials and labor.Contract documents: any drawings, blueprints, exhibits or other documents that will part of the contract.Contract price and payments: The total price to be paid for the work and how and when payments will be made.You can also attach project plans and specifications to the agreement. Description of work: A detailed description of the work and construction to be done by the contractor.Worksite: The address of the property where the construction is to be completed.
License number: The general contractor’s state license board number, proving they are a licensed contractor.General contractor: The party responsible for the day-to-day oversight of the construction.Owner: The party hiring the general contractor to complete construction on his or her property.This document outlines which parties will be engaged, the price to be paid, the rights of each party, and the date construction will commence and be completed.Ī simple document will identify the following basic elements:
The Consequences of Not Using a Construction ContractĪ Construction Contract Agreement is a written document between a property owner and a general contractor, specifying the construction, renovations, alterations, or other work to be done on the property owner’s home or land.When Do You Need a Construction Contract?.The details in a construction contract should include all aspects of the project, including payment, the type of work being done, legal rights of the contractor, and more.įor some types of construction projects, you may need government permits in addition to the construction contract before contractors can begin working. A construction contract is an agreement between a client and a contractor that specifies the details of a construction project.