CONSTRUCTION

CONTRACT
 
ACME GLOBAL Company
3147 Patterson Street, Houston, TX, 77002
 
[email protected]
www.acmeglobal.com
(123) 1234567

1
 CONSTRUCTION CONTRACT

I. PARTIES OF THE AGREEMENT

This Construction Agreement (the “Agreement”) has been signed between

______________________________________ (hereinafter shall be referred as the “Contractor”) residing
at ________________________________________________
and _______________________________________________ (hereinafter shall be referred as the “Client”)
residing at _______________________________________________________________________
on ___________________ under the terms and conditions stated below.
 

Contractor and Client shall be hereinafter referred individually as “Party”, jointly as “Parties”. 

II. SUBJECT OF THE AGREEMENT

The subject of this Contract is the terms of construction of the _________________, resides in
_____________________________________________________________.
Within the scope of this Contract, the construction covers the following issues;
____________________________________________________________________________________________________
____________________________________________________________________________________________________
_____

III. TERM OF CONTRACT

This Agreement shall enter into force upon the signature of the Parties (“effective date”). The term
of this Contract is _____________________. This term can only be extended with the written consent of
both Parties involved.
 
This Agreement has been concluded to supersede all kinds of verbal and written proposals, offers
and acceptances and all other commercial correspondences, if any. 
 

2
IV. START DATE AND COMPLETION DATE

The above-mentioned construction work will start on ____________________. Contractor is responsible

to obtain all necessary permits and licenses to start the construction.
 
The construction works to be carried out under the Contract will be completed on
____________________ at the latest and the immovable will be delivered to the Client. 

V. PRICING AND PAYMENTS

The Client shall pay the Contractor a total amount of __________________ for the completion of the
construction work. _________%  the total amount shall be paid as deposit. Balance amount shall
be paid in accordance with the chart below;
 

Amount Due Date

   

   

   

   

   

 
Payments shall be made by ____________________, at the latest until the end of the working day of the
specified day above.

VI. CONSEQUENCES OF FAILURE TO PAY

If the Client does not make the required payment on time, the Contractor may
immediately suspend the construction and notify the suspension to the Client. If the Client does not
pay within _________ days, the Contractor may terminate the contract immediately, or complete the
work and demand the balance due from the Client.
 
In any case, the Client is obliged to pay the price of the work performed.

3
VII. PERMITS AND LICENSES

Permits, licenses and required certificates to be obtained from local administrations and all kinds of
public institutions for the construction shall be taken by the Contractor.
 
If an extra cost is required to obtain these permits and licenses, this cost is borne by the Client. The
required cost is notified to the Client by the Contractor. The Contractor will not be liable if the payment is
not made within the required time.

VII. LABOR AND CONSTRUCTION MATERIAL

The Contractor is an independent contractor, and the Contractor's employees or personnel shall not be
deemed as the Client's employees. The Contractor is solely responsible for all costs and expenses of its
employees including but not limited to salaries, retirement plans, health insurance, vacation time-off, sick
pay, personal leave, or any other benefit provided. 
 
The Contractor is also solely responsible for all the construction material expenses and operating
expenses.

VIII. OTHER RESPONSIBILITIES OF THE CONTRACTOR

The Contractor shall be responsible for supervising, managing and completing all construction
services under this Contract.
 
The Contractor shall be responsible for keeping all record of documents in a safe place. The
contractor should store these documents in safe storage as it will be presented to the owner once
work has been completed.
 
The Contractor shall be responsible for taking all precautions for the safety of its employees and
the public at the property. The contractor must take full responsibility for the acts or negligence of
its employees. The contractor is also responsible for training its employees about the
Occupational Safety and Health Regulation to give knowledge on how to handle emergencies and
accidents in the workplace.

4
 
The Contractor should give a guarantee to the Client that all work will be in accordance with
the Construction Documents. Any issues caused by defective materials or equipment for a period
of ten years, the contractor shall redo or repair it.
 
The Contractor shall provide skilled and competent staff suitable to do the work and should
maintain discipline and order at the Property.
 
The Contractor shall be responsible for maintaining the Property clean and keeping it free from
waste and hazardous materials. If hazardous materials or substances were noticed in the Property
such as dangerous chemicals, contaminants or any toxic substances, the Contractor shall be
responsible for notifying the Owner immediately. The contractor is also responsible for training
their employees about handling hazardous materials and substances in a correct and safe manner.
Any sickness, damages, loss of employees that was caused by these hazardous materials shall be
handled by the Contractor.

IX. INSURANCE

The Contractor shall be responsible for purchasing and maintaining an appropriate insurance policy for
the construction. The Client agrees to maintain insurance covering the replacement cost in the event of
loss through fire, casualty, an act of nature, and theft.

X. TERMINATION

This Contract can be terminated by either party if the Contractor or the Client breaches any of the
obligations specified in this Agreement. A written notification identifying the breach should be issued by
the Contractor or the Client.
 
As defined in Article IV of this Contract, if the Client does not pay the required amount on time, the
Contractor may immediately terminate the Contract or may complete the construction and claim
compensation.

5
XI. AMENDMENT

No changes, modifications, or amendments in the terms and conditions of this contract shall be effective
unless reduced to writing, numbered and signed by the duly authorized representative of the Contractor
and the Client.

XII. ASSIGNMENT

This Agreement shall be assignable by Contractor. Client acknowledges that from time to
time, Contractor may enlist a subcontractor to perform some of the services provided to Client. In the
event services to be performed as outlined in this Agreement are subcontracted to a third party, the third
party shall accept responsibility for the performance of such activities. Contractor will cease to bear any
responsibility related to the performance of subcontracted services; however the Contractor will act as
liaison between the subcontractor and Client, to monitor the performance of services to be provided by
any third party.

XIII. GOVERNING LAW

This Contract shall be construed in accordance with the laws of the State of ____________________ and the
obligations, rights and remedies of the parties hereunder shall be determined in accordance with such
laws.

IN WITNESS WHEREOF this Contract has been executed for and on behalf of the undersigned as of
_____________________.
 

Contractor Signature Client Signature