Construction contract template

The Contractor will carry out the following work at Property address (the “Property”): Description of the work (the “Work”).

The Work is described in more detail in the plans, specifications and other documents listed here: Plans and specifications. If these documents and this Contract conflict, this Contract applies.

Design responsibility The Contractor will report any errors, gaps or conflicts it notices in the plans and get the Owner’s written answer before carrying out the affected Work.

The Contractor is licensed and registered as required by law for the Work. Its license or registration number is Contractor license number.

Permits Work that needs a permit or approval does not start until it has been issued.

Any terms, disclosures, notices or forms that the law requires for this kind of Work where the Property is located are attached to this Contract, form part of it, and prevail over anything inconsistent in it.

The price for the Work is Contract price (the “Contract Price”), plus or minus signed change orders. Price model

The Owner will pay a deposit of Deposit when this Contract is signed. It is credited against the payments in Schedule 1 and will not exceed any limit set by law.

The rest of the Contract Price is paid in the stages listed in Schedule 1. Each payment is due within Payment term after the Contractor’s invoice for a stage that is complete. Payments will not run ahead of the Work done and the materials delivered to the Property. Where the law sets a payment procedure for construction work, such as payment claims and notices, that procedure applies.

The Contract Price includes these allowances for items the Owner still has to choose: Allowances. Each allowance covers the item including delivery and taxes, and excludes installation unless the allowance says otherwise. If the Owner’s choice costs more or less than the allowance, the Contract Price changes by the difference, agreed in a change order before the item is ordered.

If the Owner disputes an invoice, it will tell the Contractor in writing promptly, with its reasons, and pay the undisputed part when due.

Materials become the Owner’s property when they are paid for or built into the Property, whichever happens first. Until completion, the Contractor remains responsible for protecting the Work and materials on site.

The Contractor will start the Work on Start date, carry it out diligently and complete it by Completion date.

The completion date moves by the time reasonably needed if the Work is delayed by change orders, the Owner’s acts or delays, unusual weather that prevents work, the late delivery of materials the Owner supplies, hidden conditions under 7., or other events the Contractor could not reasonably prevent or overcome. Ordinary seasonal weather and delays caused by the Contractor do not count. The Contractor will tell the Owner in writing promptly about any delay, its cause and its expected length, and take reasonable steps to limit it.

A later completion date does not by itself entitle the Contractor to more money. Extra costs of a delay are payable only if agreed in a change order or recoverable as damages for the other Party’s breach.

Either Party may propose a change to the Work. A change is binding only once both Parties have signed a written change order describing the change, its price and its effect on the schedule.

In an emergency, the Contractor may do only the work reasonably needed to protect people or property. It will tell the Owner as soon as possible and document the work and its cost. It may charge for that work only if the emergency was not caused by its own breach or negligence.

The Contractor will:

The Owner will:

If the Contractor finds conditions that were hidden and could not reasonably have been expected, such as rot, hazardous materials, unexpected soil or underground conditions, or existing work that breaks building codes, it will stop the affected work and tell the Owner promptly, with details and a proposed change to price and schedule. Work that is not affected continues where it is safe.

The Contractor will not disturb materials it suspects are hazardous, such as asbestos or lead paint, until they have been tested and, if needed, removed by a qualified specialist under a change order.

The Contractor bears the cost of conditions it caused. If the Parties cannot agree on a change order, the disagreement is settled under 13..

The Work is complete when it meets this Contract, is safe and can be used for its purpose, has passed the required inspections, and has been handed over with the documents listed below, apart from minor items that do not affect its use.

When the Contractor considers the Work complete, the Owner and the Contractor will inspect it together within 5 business days and list any unfinished or defective items.

The Contractor will finish the listed items within a reasonable time. Minor items do not delay the final payment, but the Owner may hold back an amount that reasonably covers them, as far as the law allows, until they are done.

With the final invoice, the Contractor will hand over the final inspection approvals, manufacturers’ warranties and manuals and, where the law provides for them, lien releases from itself and its subcontractors and suppliers: conditional releases for the final payment and unconditional releases for earlier payments that have cleared.

The Contractor warrants that the Work, including the materials it supplies, will meet this Contract and be free from defects for Workmanship warranty period after completion. After the Owner tells it in writing about a defect, the Contractor will start the repair within a reasonable time, sooner where safety or further damage requires, and complete it at no cost.

The Contractor passes on to the Owner all manufacturers’ warranties for materials and equipment installed.

The warranty does not cover damage to the extent it is caused by misuse, lack of maintenance, changes by others, normal wear, or events beyond the Contractor’s control. Neither this warranty nor its end limits the Owner’s other remedies or any warranty the Owner has by law.

Throughout the Work, the Contractor will hold general liability insurance of at least Minimum liability insurance and any workers’ compensation or employer’s insurance required by law, and show proof of it before work starts.

Insurance of the work

The Owner will keep its property insurance for the existing buildings in force during the Work and check with its insurer that the construction work is covered.

The Contractor will promptly pay its subcontractors and suppliers from the payments the Owner makes. If any of them files a lien or claim against the Property because the Contractor did not pass on the Owner’s payment, the Contractor will have it removed at its own cost.

The Contractor will give the Owner all cancellation information and forms the law requires before the Owner is bound, honor any right the Owner has to cancel this Contract, and start Work during a cancellation period only if the Owner has made any request or consent the law requires.

Either Party may end this Contract by written notice if the other Party materially breaches it and does not remedy the breach within 10 business days after receiving written notice describing it. Not paying an amount that is due and undisputed is a material breach.

If the Work is stopped for more than 30 days by events beyond both Parties’ control, either Party may end this Contract by written notice. During any stop, both Parties will protect the Work, limit costs and keep each other informed.

If this Contract ends early, the Parties settle accounts within 30 days. All payments already made are credited. The Owner pays for Work properly done, materials delivered to the Property, and reasonable costs of materials ordered that cannot be cancelled, and of leaving the site, unless these result from the Contractor’s breach. The Party in breach pays the other Party’s resulting damages, such as the extra cost of finishing or correcting the Work.

The Parties will try in good faith to settle any dispute within 30 days after one Party describes it in writing. If they cannot, Dispute resolution.

Nothing in this clause delays any adjudication or other dispute process the law makes available, urgent interim relief, or steps needed to protect a lien or meet a legal deadline.

This Contract is governed by the laws of Governing law.

This Contract, including Schedule 1 and the documents listed in 1., is the entire agreement about the Work and replaces all earlier agreements and estimates about it.

Changes to this Contract are valid only in writing, signed by both Parties. Signatures may be electronic.

Notices must be in writing and may be sent by email to Contractor notice email for the Contractor and Owner notice email for the Owner, or delivered by hand or tracked mail to the addresses above. An email notice counts as received on the next business day after it is sent, unless the sender gets a delivery failure message.

The Contractor may not transfer this Contract without the Owner’s written consent.

If any provision is invalid or unenforceable, the rest of this Contract remains in force.

This Contract may be signed in counterparts and electronically, and each signed copy is an original.