Construction Contract Template – If you are going to build a new home or renovate your house, it is important to have an agreement with your contractors in order to have legal proof of work and cost acknowledgment between two parties, which are you as the customer and contractors themselves. If you never have a construction contract with your contractor before, let’s take a look at the information and find a free construction contract template below!
Types of Construction Contract
Basically, there are three main types of construction contracts depending on the risk and the cost involved in the construction project. The three types of construction contracts are explained below.
This type of construction contract template specifies the amount that will be paid by the customer to the contractor is fixed without any cost breakdown. Therefore, the contractor will complete the work as per plan and get paid based on the first agreement without looking at the cost of extra materials or measurements that happen along with the work.
This type of construction contract template is also called a re-measurable contract. This contract will define that the price the customer has to pay will be based on the measurement details of the work. Usually, this kind of contract is used for a small project such as painting and plastering.
The cost-reimbursable contract is sometimes called “a cost-plus contract”, which means the customer will reimburse all contractor’s actual bills that occurred in the works and also an additional fee based on the agreement. There might be no actual number of the amount that should be paid by the customer on the contract but a cost estimation that is drawn based on the project outline or the design.
Construction Contract Template
This Construction Agreement (“Agreement”) is made between:
[Customer Name] with mailing address of [Address] (“Customer”),
[Contractor Name] with mailing address of [Address] (“Contractor”).
Whereas the agreement will be effective [date] under the following terms and conditions:
- Description of Work
The Contractor agrees to perform the following work: [construction work]. Hereinafter known as the “Service”.
- Contract Price and Payments
In consideration for the Services, the Customer agrees to pay [amount] with details of [contract payment details].
The Contractor agrees to be paid [time of payment] with a detailed amount of [payment detail].
- Certificate of Completion
Completion shall be defined as the fulfillment of Services in accordance with industry standards and to the approval of the Customer, which shall be completed by the Contractor by [due date details].
- Materials and Labor
Contractor shall provide and pay for all labor and equipment, and all materials necessary for the completion of the Service. All materials shall be of good quality and new unless the Contract Documents require or permit otherwise. The contractor may substitute materials only with the prior written approval of the Customer.
- Licenses and Permits
[Customer/Contractor] shall obtain all licenses and permits necessary for proper completion of the Service and is responsible for the cost of any necessary permits or licenses.
- Supervision of Construction
The contractor shall be solely responsible for and shall supervise and direct all construction under this Agreement. The contractor shall provide competent and suitable personnel to perform the Service and shall at all times maintain good discipline and order. The contractor will at all times take all reasonable precautions for the safety of its employees and the public at the property.
This Agreement shall terminate upon [date/detail of termination].
In addition, the Customer or Contractor may terminate this Agreement and any obligations stated hereunder, with reasonable cause by providing written notice of reason of termination.
This Agreement, along with any attachments or addendums, represents the entire agreement between the parties. Therefore, this Agreement supersedes any prior agreements, promises, conditions, or understanding between the Customer and the Contractor.