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This Construction Contract Agreement outlines the terms between the Owner and Contractor for a construction project, including the description of work, payment terms, and responsibilities regarding materials, permits, and compliance with laws. It also details provisions for changes to work, inspections, warranties, and dispute resolution methods. The agreement emphasizes the independent contractor status of the Contractor and includes clauses for termination, indemnification, and insurance requirements.

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0% found this document useful (0 votes)
5 views

docs1687247309

This Construction Contract Agreement outlines the terms between the Owner and Contractor for a construction project, including the description of work, payment terms, and responsibilities regarding materials, permits, and compliance with laws. It also details provisions for changes to work, inspections, warranties, and dispute resolution methods. The agreement emphasizes the independent contractor status of the Contractor and includes clauses for termination, indemnification, and insurance requirements.

Uploaded by

SARATH VADIVEL
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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CONSTRUCTION CONTRACT

This Construction Contract Agreement (this “Agreement”) is made as of the ___


day of ___________, 20___ at __________ (Place).
BY AND BETWEEN
__________, a(n) Individual Business Entity located at __________,
__________, __________ __________, (“Owner”).
AND
__________, a(n) Individual Business Entity located at __________,
__________, __________ __________ with contractor's license number
__________ ("Contractor").

(Owner and Contractor may each be referred to in this Agreement individually as a


“Party” and collectively as the “Parties.”)

The Parties agree as follows:


1. Description of Work. Contractor shall perform the following described work at
__________, __________, __________ __________ (the "Property"), in
accordance with Owner’s contract plans and specifications, this Agreement and
any Change Order, as defined herein, (collectively, the "Contract Documents"):
__________________________________________
_____________________________________________________ [Description of
work] (the "Work"). Industry terminology used in any Contract Documents which
are not defined shall be interpreted as having the same meaning as that recognized
in the construction industry in the area where the Property is located.
2. Contract Price and Payments. Owner agrees to pay Contractor the total
amount of ________ (the “Contract Price”). Payment of this amount is subject to
additions or deductions in accordance with any mutually agreed to changes and/or
modifications in the Work. Payment will be made by (Check one)
cash personal check cashier’s check money order credit card or
debit card wire transfer other: __________, according to the following
schedule:

Deposit (Check one)


A deposit is NOT required.
__________ deposit, due upon the execution of this Agreement.

Installments (Check one)


There will be NO installment payments.
Installment will be paid at set intervals. ________ due every week
every month other: __________ from the completion of the Work.
Installments will be paid upon the completion of the following milestones:
 ________ due upon __________ [Milestone]
 ________ due upon __________ [Milestone]
 ________ due upon __________ [Milestone]

Balance Due
________ balance due upon completion of the Work.

3. Certificate of Completion. Work under this Agreement shall begin on


___________, 20___, ( and shall be completed by ___________, 20___). Upon
completion of the Work, Contractor shall notify Owner that the Work is ready for
final inspection and acceptance and Owner shall make the final payment within
__________ days after final inspection.

4. Materials and Labor. Contractor shall provide and pay for all labor and
equipment, including tools, construction equipment, machinery, transportation and
all other facilities and services, and all materials necessary for the completion of
the Work. All materials shall be good quality and new, unless the Contract
Documents require or permit otherwise. Contractor may substitute materials only
with the prior written approval of Owner. (Check all that apply)
The following materials will not be included in the Contract Price and are the
sole responsibility of Owner and will not be covered under warranty by Contractor:
_______________________________.

In addition, the Contract Price shall include the following fixtures:


__________________________.

5. Licenses and Permits. (Check one) Contractor Owner shall obtain all
licenses and permits necessary for proper completion of the Work. (Check one)
Contractor Owner is responsible for the cost of any necessary permits or
licenses.

6. Laws and Regulations. Contractor shall perform the Work in a workmanlike


manner and in compliance with all applicable federal, state, and local laws,
regulations and ordinances, trade standards, ethical guidelines and any safety
requirements of Owner (the “Applicable Laws”). Contractor shall promptly notify
Owner upon discovery of any variance between the Applicable Laws and the
Construction Documents.

7. Supervision of Construction. Contractor shall be solely responsible for and


shall supervise and direct all construction under this Agreement. Contractor shall
provide competent and suitable personnel to perform the Work and shall at all
times maintain good discipline and order at the Property. Contractor will at all
times take all reasonable precautions for the safety of its employees and the public
at the Property. Contractor agrees to assume full responsibility for the acts,
negligence, and/or omissions of its employees and any subcontractors and their
employees.
8. Record Documents. Contractor shall maintain in a safe place at the Property
one record copy of all drawings, specifications, addenda, written amendments, and
the like in good order and annotated to show all changes made during construction,
which will be delivered to Owner upon completion of the Work. Owner shall have
the right to inspect and review such documents upon notice to Contractor.

9. Utilities. (Check one) Contractor Owner shall pay for all permanent
electric, water, phone, cable, sewer and gas service as needed to perform the Work.
(Check one) Contractor Owner shall pay for the installation, connection and
removal of all temporary utilities on the Property during the performance of the
Work. All temporary utilities shall conform and adhere to the Applicable Laws.

10. Hazardous Materials. Except as otherwise provided in the Contract


Documents, Contractor shall be responsible for all Hazardous Materials brought to
the Property by Contractor. Hazardous Materials shall include radioactive
materials, asbestos, polychlorinated biphenyls, petroleum products, crude oil,
flammable materials, chemicals or solvents known to cause cancer or reproductive
toxicity, pollutants, contaminants and toxic substances which are restricted,
prohibited or regulated by any agency of government in its manufacture, use,
maintenance, storage, ownership or handling. If Contractor discovers any
Hazardous Materials on the Property, Contractor shall immediately notify Owner
and may cease working until the material or substance has been rendered harmless.
Owner shall defend, indemnify and hold harmless Contractor, any subcontractors,
and their respective agents and employees from and against all claims, damages,
losses and expenses, including attorney’s fees, arising out of or resulting from
contact with the Hazardous Substance in performance of the Work resulting in
bodily injury, illness or death, or injury or property damage, provided such claim,
damage, loss or expense is not the result of any negligent act or omission by the
party seeking such indemnity.

11. Warranty. Contractor warrants that the Work shall be in accordance with the
Contract Documents, applicable law and trade standards and free from material
structural defects, improper workmanship or defective materials. Contractor shall
replace, correct or repair any Work not in accordance with the Contract
Documents, applicable law and trade standards or any defects caused by faulty
materials, equipment or workmanship for a period of __________ year(s) from the
date of completion of the Work. Nothing in this Section 11 shall be construed to
place a time limit with respect to any other obligation Contractor may have under
this Agreement.

12. Condition of the Property. Contractor agrees to keep the Property and
adjoining driveways free and clear of waste material and rubbish. Contractor shall
confine the storage of materials and equipment and the operations of employees to
the Property, and shall not unreasonably encumber the Property with materials or
equipment. Contractor shall be fully responsible for any damage to the Property or
areas contiguous thereto resulting from the performance of the Work. At the
completion of the Work, Contractor shall remove all waste materials, rubbish and
debris from and about the Property as well as all tools, appliances, construction
equipment and machinery, and surplus materials, and shall leave the Property clean
and ready for occupancy by Owner.

13. Inspection. Owner shall have a right to inspect the Work at any time and
request that Contractor promptly correct any Work that is defective or does not
conform to the Contract Documents. If required, the Work shall be inspected and
certified by the appropriate state or local agency or health officer at each necessary
stage.

14. Right to Stop Work. If Contractor fails to correct any defective Work or
repeatedly fails to perform the Work in accordance with the Contract Documents,
Owner shall have the right to order Contractor to stop performing the Work, or any
portion thereof, until the cause for such order is eliminated.

15. Subcontracts. Contractor shall furnish to Owner a list of names of


subcontractors proposed to perform principal portions of the Work. Contractor
shall not employ any subcontractor to whom Owner reasonably objects. A
subcontractor, for the purposes of this Agreement, shall be a person with whom
Contractor has a direct contract for work at the Property. All contracts between
Contractor and subcontractor shall be in accordance with the terms of this
Agreement and the Contract Documents.

16. Work Changes. Owner reserves the right to order changes to the Work in the
nature of additions, deletions or modifications, without invalidating this
Agreement, and agrees to make corresponding adjustments in the Contract Price
and time of termination if applicable. All changes will be authorized in a written
“Change Order” signed by Owner and Contractor, which shall be incorporated by
reference herein.

17. Other Contractors. Owner reserves the right to enter into other contracts in
connection with the Work. Contractor shall cooperate with all other contractors so
that their work shall not be impeded, and shall give them access to the Property as
necessary to perform their contracts.
18. Indemnification. Contractor agrees to defend, indemnify and hold harmless
Owner and its agents and employees, from and against all claims, actions,
liabilities, suits, demands, injuries, obligations, damages, losses, settlements,
judgments, fines, penalties, costs and expenses, including reasonable attorneys'
fees, arising out of any negligent act or omission by Contractor, a subcontractor or
anyone directly or indirectly employed by them in the performance of the Work
resulting in bodily injury, illness or death, or for property damage, including loss
of use, unless caused by the sole negligence or willful misconduct of Owner.

19. Contractor’s Insurance. Contractor agrees to maintain at its own expense


during the entire period of construction at the Property:

A. General Liability Insurance. Such general liability insurance as will protect


Contractor from claims for property damage and bodily injury, with limits of
liability not less than __________ for each occurrence.
(Check all that apply)
B. Workers' Compensation Insurance. Such workers' compensation and
employee insurance as
required by law.
C. Automobile Liability Insurance. Such automobile liability insurance
with limits of liability not less than __________.
D. Other Insurance. __________.

Contractor shall name Owner as an additional insured ( except for the workers'
compensation insurance). Proof of such insurance shall be filed by Contractor with
Owner within a reasonable time after execution of this Agreement.
20. Waiver of Subrogation. Owner and Contractor each waive any and all claims
or rights to recovery against the other Party for any loss or damage to the extent
such loss or damage is covered by insurance or would be covered by any insurance
required under this Agreement. Owner and Contractor shall cause each insurance
policy carried by Owner or Contractor relating to the Property to include or allow a
full waiver of any subrogation claims.

21. Time of Essence. All times stated in this Agreement or in the Contract
Documents are of the essence. Contractor agrees that such times are reasonable for
performing and completing the Work.

22. Liquidated Damages. (Check one)


Owner is entitled to liquidated damages. In the event the Work is not completed
by the date set forth in Section 3 of this Agreement, plus any extensions thereof as
allowed in this Agreement, Owner shall suffer damages uncertain in amount and
difficult to measure and prove accurately. Owner and Contractor agree that in lieu
of actual damages, and not as a penalty, for delay in the performance of the Work,
Contractor shall pay Owner the sum of __________ for each calendar day
completion of the Work is delayed. Contractor agrees that the liquidated damages
specified herein are reasonable in amount and are not disproportionate to actual
anticipated damages. Owner shall have the right to deduct any liquidated damages
from any amount due or that may become due to Contractor. Liquidated damages
shall be the sole and exclusive remedy for Owner for delay in completion of the
work past the agreed upon date.

Owner is NOT entitled to liquidated damages.


23. Extension of Time. The times stated in this Agreement may be extended for
such reasonable time as Contractor may determine when performance of the Work
by Contractor is delayed by a Change Order, labor disputes, fire, unusual delay in
deliveries, abnormal adverse weather conditions, unavoidable casualties, or other
causes beyond Contractor’s control or which justify the delay.

24. Early Termination for Breach of Contract.


A. Contractor's Termination. Contractor may, on __________ days’ written
notice to Owner, terminate this Agreement before the completion of the Work
when for a period of __________ days after a progress payment is due, through
no fault of Contractor, Owner fails to make the payment. On such termination
Contractor may recover from Owner payment for all Work completed and for
any loss sustained by Contractor for materials, equipment, tools or machinery to
the extent of actual loss thereon, plus loss of a reasonable profit.

B. Owner's Termination. Owner may, on __________ days’ notice to


Contractor, terminate this Agreement before the completion of the Work, and
without prejudice to any other remedy Owner may have when Contractor
defaults in the performance of any provision of this Agreement, or fails to carry
out performance of the Work in accordance with the provisions of the Contract
Documents.

Excess Payment (Check all that apply)


If the unpaid balance on the Contract Price at the time of the termination
exceeds the expense of finishing the Work, Owner shall pay such excess to
Contractor.
If the expense of finishing the Work exceeds the unpaid balance of the
Contract Price at the time of termination, Contractor shall pay the difference to
Owner.

25. Disputes. Any dispute arising from this Agreement shall be resolved through:
Court litigation. The dispute shall be resolved in the courts of the State of
__________.
Attorneys’ Fees
If either Party brings legal action to enforce its rights under this
Agreement, the prevailing party will be entitled to recover from the other
Party its expenses (including reasonable attorneys’ fees and costs) incurred
in connection with the action and any appeal.

Arbitration. The dispute shall be resolved through binding arbitration conducted


in accordance with the rules of the Arbitration and Conciliation Act 1996.

Mediation. The dispute shall be resolved through mediation.

Mediation then Arbitration. The dispute shall be resolved through mediation. If


the dispute cannot be resolved through mediation, then the dispute will be resolved
through binding arbitration.

27. Counterparts. This Agreement may be executed in one or more counterparts,


each of which shall be deemed an original and all of which together, shall
constitute one and the same document.
28. Headings. The section headings herein are for reference purposes only and
shall not otherwise affect the meaning, construction or interpretation of any
provision of this Agreement.

29. Notices. Any notice or communication given or made to any Party under this
Agreement shall be in writing and delivered by hand, sent by overnight courier
service or sent by certified or registered mail, return receipt requested, to the
address stated above or to another address as that Party may subsequently
designate by notice and shall be deemed given on the date of delivery.

30. Assignment. No Party hereto shall have the right to assign its rights or delegate
its duties hereunder without the written consent of the other Party, which consent
shall not be unreasonably withheld.

31. Binding Effect. This Agreement shall be binding and enure to the benefit of
the Parties and their respective legal representatives, heirs, administrators,
executors, successors and permitted assigns.

32. Governing Law. This Agreement and the rights and obligations of the Parties
hereto shall be governed by and construed in accordance with the laws of the State
of __________, without regard to its conflicts of law’s provisions.

33. Severability. If any provision of this Agreement is held to be invalid, illegal or


unenforceable in whole or in part, the remaining provisions shall not be affected
and shall continue to be valid, legal and enforceable as though the invalid, illegal
or unenforceable part had not been included in this Agreement.
34. Entire Agreement. This Agreement contains the entire agreement between the
Parties hereto with respect to the subject matter hereof, and supersedes all prior
negotiations, understandings and agreements.

35. Amendments. This Agreement may not be amended or modified except by a


written agreement signed by the all of the Parties.

36. Waiver. No Party shall be deemed to have waived any provision of this
Agreement or the exercise of any rights held under this Agreement unless such
waiver is made expressly and in writing. Waiver by any Party of a breach or
violation of any provision of this Agreement shall not constitute a waiver of any
other subsequent breach or violation.

37. Survival. The obligations of Contractor expressly identified in this Agreement,


or those by operation of law, shall survive the completion of Work or termination
of this Agreement.

38. Industry Language. The language used for terms of this Agreement, unless
otherwise defined, shall be construed according to the customary meaning within
the construction industry in the area where the Project is located and for the type of
Work being performed.

39. Independent Contractor. Contractor acknowledges that it is an independent


contractor and is not an agent, partner, joint venture nor employee of Owner.
Contractor shall have no authority to bind or otherwise obligate Owner in any
manner nor shall Contractor represent to anyone that it has the right to do so.
Contractor further agrees that in the event that the Company suffers loss or damage
as a result of a violation of this provision Contractor shall indemnify and hold
harmless Owner from any such loss or damage.

40. Rights of Third Parties. Nothing in this Agreement shall create or give to any
third party a claim or right of action against Contractor or Owner.

41. Confidentiality.
As a result of Contractor's participation in the Work, Contractor will have access
and contribute to information and materials of a highly sensitive nature, including
Confidential Information. Contractor hereby warrants that Contractor and its
employees and agents shall not (without in each instance obtaining the Owner's
prior written consent) disclose, make commercial or other use of, or give or sell to
any person, firm, or corporation, any Confidential Information received directly or
indirectly from Owner or acquired or developed in the course of the performance
of this Agreement unless: (1) required to do so pursuant to Applicable Laws (and
then only after Contractor has given Owner prompt written notice of the legal
compulsion and, at Owner's expense, provided by Owner with cooperation in any
attempt Owner may make to gain a protective order acceptable to Owner); or (2) it
is rightfully in the possession of Contractor from a source other than Owner prior
to the time of disclosure of the information to Contractor under this Contract; or
(3) it was in the public domain prior to the time of Contractor's receipt; or (4) it
became part of the public domain prior to the time of Contractor's receipt by any
means other than an authorized act or omission on the part of Contractor; or (5) it
is supplied to Contractor after the time of Contractor's receipt by a third party who
was not under any obligation to Owner to maintain such information in confidence;
or (6) it was independently developed by Contractor prior to the time of its receipt
from Owner. All Confidential Information, regardless of form, shall be the
property of Owner and shall be returned to Owner upon its request, or in any event,
at the completion or earlier termination of this Agreement.
Contractor will NOT have access and contribute to Confidential Information.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date
first written above.

Owner Signature Owner Full Name

Owner Representative Signature Owner Representative Name and Title

Contractor Signature Contractor Full Name

Contractor Contractor Representative Name and


Representative Signature Title

Certificate of Completion

Contractor Name: __________

Property Address: __________, __________, __________ __________

Contract Date: ___________, 20___


Completion Date: ___________, 20___

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