Residential Construction Contract

This Residential Construction Contract is being entered into between [Owner.FirstName][Owner.LastName] (“Owner”) and [Contractor.Company] (“Contractor”) (collectively, the “Parties”). The effective date of this Contract will be the last date of signature below.

This Residential Construction Contract, along with incorporated documents referenced herein, sets forth the terms and conditions agreed to between the Parties relating to the construction of (enter the type of residential construction) by the Contractor for the Owner.

Parties and Property

1.1. Owner is [Owner.FirstName][Owner.LastName] and is the legal owner of the property on which construction will be completed under this Contract, with contact information as follows:

​[Owner.StreetAddress]​

​[Owner.Phone]​

​[Owner.Email]​

1.2. [Contractor.Company] is a duly licensed general contractor in good standing, with license number: (Enter license number), and contact information as follows:

​[Contractor.StreetAddress]​

​[Contractor.Phone]​

​[Contractor.Email]​

1.3. The site for the construction to be completed under this Residential Construction Contract is as follows:

Street address:

Legal description:

(hereinafter “Property”).

1.4. Construction Project shall mean the work that the Contractor (and/or Contractor’s agents) are obligated to perform for the Owner as detailed within the following plans and specification documents, which are incorporated herein by reference:

• Plan documents

• Specification documents

1.5. The Contractor agrees to perform the following: (Describe the project). Hereinafter known as the “Services”.

Compensation

2.1. In consideration for the Services to be performed by the Contractor, the Client agrees to pay the following: (check one)

$(Enter amount) / Hour.

$(Enter amount) for the Services.

Commission in the amount of: (Enter amount).

Other: (Enter a Description).

2.2. Completion shall be defined as the fulfillment of Services as described in Section 2.1 in accordance with industry standards and to the approval of the Client, not to be unreasonably withheld.

2.3. The Contractor agrees to be paid: (check one)

At the completion of the Services performed.

On a

weekly

monthly

quarterly basis beginning on (DATE) until the completion of the Services.

Other. (Provide a description).

2.4. The Contractor will have the right to stop work and keep the Construction Project idle if payments are not made to the Contractor when due. If the work is stopped for such reason for a period exceeding (Enter number of stop days) days without payments being made, the Owner shall be deemed to be in default, and the Contractor may, at its option, make a final demand for all payments due and owing, and any additional expenditures for work performed, materials ordered or supplied, or any other loss sustained.

2.5. If payment is not made within (Enter number) days thereafter, the Contractor will be entitled to all legal remedies for breach of this Contract.

2.6. The Contractor shall be: (check one)

Responsible for all expenses related to providing the Services under this Agreement. This includes, but is not limited to, supplies, equipment, operating costs, business costs, employment costs, taxes, Social Security contributions/payments, disability insurance, unemployment taxes, and any other cost that may or may not be in connection with the Services provided Contractor.

*Reimbursed for the following expenses that are attributable directly to the Services performed under this Agreement: (Provide a description).

*The Client will be required to pay the Contractor within thirty (30) days of any Expense after receiving an itemized expense statement from the Contractor. Upon request by the Client, the Contractor may have to show any receipt(s) or proof of purchase for said Expense(s).

Contingencies, Commencement, and Completion

3.1. This Residential Construction Contract

is/

is not contingent on the Owner obtaining a construction loan as follows: financing conditions on or before the contingency deadline. The Owner will provide notice to the Contractor when the construction loan has been approved. If this Contract is contingent on the Owner obtaining a construction loan and such loan is not obtained on or before the contingency deadline set forth herein, neither the Owner nor the Contractor shall have any further obligations under this Contract.

3.2. Work on the Construction Project will commence no later than (Enter number) days after the Effective Date of this Contract or after the Contractor receives notice from the Owner of approval of any construction loan, whichever is later.

3.3. The Construction Project is scheduled to be completed within (Enter number) months of the Commencement Date unless modified by change order as defined herein.

Change Orders

4.1. From time to time during the performance of work under this Contract, there may be changes required or requested to the scope of work, price, and time for completion. All such proposed changes will be submitted to the other Party in writing containing at least the following information: proposal date, the change requested, explanation of how that will affect the cost or time of completion, and signed by the proposing party.

When both parties have signed to acknowledge their approval of such a proposal, it will be designated as a “Change Order” and will then be incorporated into this Residential Construction Contract, which is binding to both parties.

Additional Provisions

5.1. The Contractor will obtain, at its own cost, all necessary permits and permissions to perform the work required for the Construction Project.

5.2. The Contractor will maintain, throughout the duration of this Contract, all legally required licenses and permissions to perform the work required for the Construction Project. To the extent it is permitted by law, the Contractor may subcontract portions of work to properly qualified and licensed subcontractors upon advance notice to the Owner and ensure that prompt and proper payment is made to such subcontractors as will avoid any liens being placed on the Property.

5.3. The Owner will provide the Contractor and its employees, agents, and subcontractors reasonable access to the Property for purposes of conducting work on the Construction Project.

5.4. During the course of work on the Construction Project, the Owner or Owner’s designated agent will have access to the Property for purposes of inspection, appraisal, and work evaluation. Such access and inspections will be conducted at reasonable times, with advance notice to the Contractor when reasonably practicable, and in a manner not to obstruct the progress of construction.

5.5. The Parties will purchase and maintain the following insurance polic(y/ies) during the course of work on the Construction Project with duly licensed insurance companies in the amount of no less than $(Enter minimum insurance amount) and with reasonable deductibles not to exceed minimum deductible amount.

5.6. The Contractor will be responsible to properly dispose of all construction materials and debris from the Property from the Commencement Date until the date a certificate of occupancy is issued to the Owner.

5.7. The Contractor will be responsible to comply with legal regulations regarding the removal and disposal of Hazardous Materials at its own cost unless otherwise specified in this Residential Construction Contract. The Contractor will indemnify the Owner for any damages resulting from improper handling or disposal of Hazardous Materials at or from the Property from the Commencement Date until the date a certificate of occupancy is issued to the Owner.

5.8. Utility services to the Property during the time of construction will be arranged for and paid by (Specify utility responsible party).

5.9. In the event of destruction of the Property, in whole or in part, from the Commencement Date until the date a certificate of occupancy is issued to the Owner, either party will have the right to terminate this Contract.

5.10. Contractor will not be deemed in breach of this Residential Construction Contract or have liability to the Owner for failure to perform obligations under this Contract if the failure is due in whole or in substantial part to strikes, acts of God, unavailability of specified labor or materials, war, acts of terror, or other causes beyond the reasonable control of the Contractor.

Substantial Completion and Punch List

6.1. The Contractor will provide notice to the Owner when the Construction Project is substantially complete. The Owner will inspect the Construction Project within (Enter number) days after receiving such notice and deliver to the Contractor a “punch list” of deficiencies found on the Construction Project. The Contractor will promptly correct the matters identified on the punch list. The Owner may withhold from final payment to the Contractor a reasonable estimate of the cost to correct the punch list items until such items are corrected.

Warranties

7.1. The Contractor warrants and represents that it is duly licensed to perform the work under this Residential Construction Agreement and will perform such work in a workmanlike manner, in compliance with all applicable laws, regulations, codes, restrictive covenants, and homeowners’ association requirements, with new materials meeting the standards set for in the Residential Construction Contract, including plans and specifications incorporated therein.

7.2. The Owner represents that he/she/it is the legal owner of the Property or otherwise has the full legal authority to enter into this Contract without approvals from any other person or entity, that the requested work as outlined in the plans and specifications are in compliance with all applicable laws, regulations, codes, restrictive covenants, and homeowners’ association requirements, and that the Owner has the financial ability to pay the compensation to the the Contractor, and any reasonable adjustments thereto via change orders, when due and that the Owner will make such payments.

7.3. Both Parties will execute and deliver to the other or to third parties any and all documents necessary to effectuate the provisions of this Residential Construction Contract, including construction permits, certificate of occupancy, and other documents.

General Terms

8.1. Either Party may not assign this Contract without written consent of the other Party, and such consent is not to be unreasonably withheld.

8.2. Any notice required or permitted under the terms of this Residential Construction Contract shall be provided to the contact information set forth in Articles 1.1 and 1.2 above.

8.3. If any provision of this Contract is found to be invalid, illegal, or unenforceable, the remaining portions shall remain in full force and effect.

8.4. This Residential Construction Contractis governed and is to be interpreted under the laws of the State of (Enter the State). Any legal proceedings relating to this Contract will be maintained only in the County of (Enter the Country) in the State of (Enter State).

8.5. In the event of a conflict between the documents incorporated into this Contract, the specifications will take precedence over the plans, and the plans will take precedence over this document.

8.6. This Residential Construction Contract and the documents incorporated herein can only be modified in writing, signed and dated by both Parties.

Executed by the Parties on the date indicated below.