Construction Proposal and Agreement Template

Dear [Owner.FirstName][Owner.LastName],

As we all know, land is a finite resource and a prime investment to own. Land, when being transformed into great cities with nice homes, grand office buildings and impressive corporate parks, is a great feat to accomplish. Developing acres of this prime property entails a lot of planning and building.

Our company, [Sender. Company], has established numerous residential homes and office buildings in different parts of the state. Through the use of the latest technology coupled with several years of experience in the construction business, we assure you of excellent workmanship from start to completion of the project.

As the job includes a lot of detailing and price comparisons, we offer you a package price that can match the industry's standards. Tailored to your needs, rest assured that the quality and service that we render will be suited to your exact specifications and will meet your expectations.

Feel free to contact us anytime should our service merit your interest. If you need any specific examples of our past work, or wish to see any samples from our portfolio, please let us know and we’ll be happy to share them with you!

Sincerely,

​[Sender.FirstName][Sender.LastName]​

​[Sender.Company]​

​[Sender.Phone]​

About Us

At [Sender.Company], we are not merely transforming land into blocks and bricks. We believe in the beauty of creation and the power of design. And more importantly, we believe in the realization of your dreams.

Our company has been an established construction firm, creating homes and offices in different locations. The expertise and experience we offer is based on industry standards, all for a reasonably packaged price. As your trusted partner, we guarantee excellent workmanship from the start phase of construction until the completion of the project.

We are a team of competent contractors and engineers who will be your partner in the development of your property. Whether it's the building of a new home or the construction of an office building, we are dependable professionals who will render outstanding services from pre-construction to cost scheduling. Our team is ready to serve you!

Company Details

Company Name: [Sender.Company]​

Head Office Address: [Sender.StreetAddress][Sender.City][Sender.State][Sender.PostalCode]​

Email Address:  [Sender.Email]​

Website: (Sender.Website)

Telephone Numbers:  [Sender.Phone]​

Cost Estimate

This cost estimate covers the direct labor, materials, subcontracting and equipment for your project. Reasonably priced packages are indicated below:

Detailed Estimation

The Work to be completed underneath this Agreement shall begin upon written declaration from the Owner to continue, and shall be prosecuted thereafter with diligence until reaching the end, which shall occur on the _____ day of _____________________, 20XX.

In accordance with the Requests for Reimbursement the Contractor filed to the representation and the Certificates for Compensation the authority issued, the Owner shall make the following progress payments to the Contractor:

For the satisfactory completion of the Work, the Owner shall pay the Contractor an amount not to exceed that specified in this Construction Agreement, subject to any additions and deductions specified in the General Conditions Change Order.

​[Owner.Company] shall hold back ten percent (10%) of each standardizing for settlement until final payment. For certain projects, the Parties may agree to an alternative arrangement as long as it is agreed to having been written by all Parties. Without a clear written agreement outlining another, then in that case the default amount to be retained shall be the indicated ten percent (10%).

The Owner is required to post a Notice of Final Settlement twice at least 10 days before the date of final settlement following the completion of the Work, assuming the Agreement is then completed successfully and subject to the conditions mentioned in the contract. The Owner shall deduct from final contributions any sums necessary to comply with the clause indicated in the contract termination.

This Construction Agreement is made and entered into as of (Date) by and between [Owner.Company], hereinafter referred to as the "Owner" and [Sender.Company], hereinafter referred to as the "Contractor";

Witnesseth:

WHEREAS, the Owner requires the services for a duly licensed and qualified construction firm to develop their property;

WHEREAS, the Contractor represents that it has the required professional skills/certifications and financial capacity to provide services to the Owner,

NOW THEREFORE, the Parties bind and agree to the following terms below:

Project

The Owner will award a Construction project to the Contractor entitled (Project.Title);

1. The location of the Owner's property will be properly presented to the Contractor, including the necessary technical details of the lot parcel/building;

2. The duration of the project will start from (Date), and the estimated completion date will be (Date).

Payment Terms

1. The Owner agrees to pay the Contractor an initial 20% of the estimated contract cost, upon the finalization of the estimated project cost.

2. The Owner will pay an additional 25% of the estimated project cost upon the commencement of the project development.

3. Full payment of the project will be due and demandable ten (10) days after the completion and Owner’s receipt of Certificate of Completion.

4. Payments should be made to the Contractor in post-dated checks and will be given an Official Receipt or Acknowledgement Receipt for every check received and validated.

5. Should the Owner be in default during the ongoing construction, the Contractor has the right to give notice and may stop performance until the Owner corrects the default within thirty (30) business days.

Construction Bond and Permits

1. Any applicable construction bonds applied during the development/construction of the project will be shouldered by the Contractor provided that the cost of the bond will be included as part of the total estimated cost.

2. All concerned permits for the construction phase will form part of the estimated project cost and shall be duly completed by the Contractor before the start date stated in the contract.

Construction Materials

1. All basic materials (or otherwise) listed in the materials specification list will be reviewed and agreed upon by the Owner before the actual construction commences.

2. Changes in materials will be reflected in the estimated project cost and will be reviewed by the Contractor.

3. Modifications in the list of materials will be subject to approval of the Contractor.

Work Schedule

1. The Contractor will provide a schedule of the performance of work to the Owner prior to the commencement of construction.

2. Extension of work schedule is permitted only in circumstances that are beyond the Contractor's control and will be agreed upon by both the Owner and Contractor.

Compliance

1. Should the Contractor fail to meet the requirements set by the Owner, the Owner may notify the Contractor in writing that the Contractor is in default and will be given up to five (5) business days to act. If the Contractor fails to comply or respond within the given period, the Owner may correct the default and deduct the cost thereof from any payment due to the Contractor, or terminate the Construction Agreement.

2. If the Owner decides to terminate the Agreement, the Contractor shall be entitled to payment for services rendered up until the termination date.

3. The Owner and the Contractor must both sign the project documentation in at least two copies. Any affiliated agents to either Party who did not sign the Plans, Specifications, or any other Tender Documentation must be specified at signing. By signing the Contract, the Contractor certifies that they have been to the location and are familiar with the on-site requirements, where the Work will be carried out.

Warranties

1. The Contractor warrants the Work against defects in workmanship and materials for a period of 12 months after full completion and turnover of the building.

2. The warranty does not take effect if the Owner is in default of this Agreement or the effects of normal damages brought by wear and tear, caused by the faulty maintenance of the Owner.

3. Should the Owner provide the Contractor with a notice of a warranty claim under the 12 month period stated in this Agreement, the Contractor shall respond within thirty (30) business days to the said warranty.

Changes In Work

The Owner shall be permitted to change or modify the work at any time while it is being performed. The Contractor must provide an itemized evaluation of any expenditure or time adjustments or savings it anticipates as a consequence of the modification as soon as Contractor is informed of the change.

No additions or changes to the Work may be made without the Owner's written consent. Additionally, the Owner shall not be responsible to the Contractor for every kind of increased compensation, unless the addition or change is necessary in an emergency that endangers life or property or is expressly stated herein. No authority or agent of either Party is permitted to give verbal instructions for any additional or modified labor.

Before beginning any such activities, the Owner must give their written approval for any desired alterations. Any modifications implemented without the expressed prior written consent of the Owner are not the Owner's responsibility.

Any changes that are made without this prior written approval will be deemed: (i) the Contractor waives any right for such items, and (ii) the Contractor acknowledges that such things are actually not changes at all, but rather constitute a component of the Work that the Contractor is required to provide under the terms of this agreement.

Contract Termination

The contract shall be subjected to termination only to the extent that such component or clause breakdown of the contract and its impact is not subject to adjustments by Project Scope as set forth. The contract shall be terminated at any time, if one or more of the following conditions are met: (i) if the agreeable amount is not paid by the necessary time limit; (ii) failure to substantially conform with any of their material duties under this Agreement; or (iii) if an insolvency event or act of God / force majeure arises which doesn’t allow one Party or both Parties to fulfill their obligations.

In the case that either Party terminates the contract, and both Parties fail to reach a conclusion on how to move forward so that both Parties are fairly compensated, then the following conditions will be need to met:

1. If the contract has been terminated by the Owner, within 7 weeks of contract termination, the Owner shall pay the Contractor the full amount or partial amount of the project, depending upon how far along the project is toward completion. This payment includes, but is not limited to, charges of labor, delivery, transport, materials, expertise, and other expenses.

2. If the contract has been terminated by the Contractor, then within 7 weeks of termination the Contractor will find the Owner a suitable replacement and/or will provide assistance until the time a replacement Contractor has been found and their services have been accepted by the Owner.

Acceptance Form

In Witness Whereof, the Parties have executed this Agreement on the date and place above

specified.