Construction Contract Template

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Construction agreement free contract template online

Download Construction Contract Agreement Template

Sign.Plus’s construction contract agreement includes details such as the scope of work, payment terms, project timelines, and responsibilities of each party. Explore other free contract templates.

What is a construction contract template?

A construction contract is a formal document between constructor and client laying out the terms and conditions of the work to be performed. A constructor, also known as the builder, is responsible for the execution of a construction project. They charge client fees in exchange for bringing property to life.

What’s in this free construction contract template?

Scope of services
Fees and payment terms
Responsibilities of constructor

Download now for free to get your construction contract agreement template. Use Sign.Plus to fill out or sign your template online.

What is an construction contract agreement used for?

A construction contract agreement is a legally binding document used to formalize the terms and conditions of a construction project between the parties involved, typically the Contractor and the Client.

Defining Responsibilities: The contract clearly outlines the roles and responsibilities of each party involved in the construction project. This includes specifying the scope of work, project timeline, and any other relevant details.
Establishing Terms: It sets forth the terms and conditions under which the construction work will be performed, including payment terms, project milestones, and any applicable warranties or guarantees.
Managing Risks: The contract helps mitigate risks by addressing potential issues such as delays, changes in scope, or disputes. It typically includes provisions for handling these situations to minimize conflicts and ensure smooth project execution.
Protecting Rights: By documenting the agreement in writing, the contract protects the rights and interests of both parties. It provides a legal framework for resolving disputes and enforcing obligations if conflicts arise during the project.
Ensuring Compliance: The contract ensures compliance with relevant laws, regulations, and industry standards governing construction projects. It may include provisions related to permits, insurance, safety requirements, and environmental regulations.

Customize your template and use Sign.Plus to sign it online

Our construction contract template is designed to simplify the management of your construction projects, ensuring efficiency and resource savings. Customize and use Sign.Plus to sign and send your sample from any device.

As a secure, reliable, and easy-to-use platform, Sign.Plus caters to all your signing needs, from contracts to agreements.

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Best Practices When Using Construction Contract Template

Define scope clearly

A constructor or contractor must be clear on the scope of their client’s building project. The contract agreement should clearly define the services that the accountant will provide. This includes the frequency of work, the duration of the contract, and the expected deliverables.

Detail payment terms

The contract should clearly state the payment schedule, including the fees and how they will be invoiced and paid. This helps to avoid any misunderstandings or disputes over payment.

Ensure confidentiality

The contract should include provisions that ensure the confidentiality of the client's financial information and prevent the accountant from sharing any confidential information with third parties.

Outline dispute resolution

The contract should include procedures for resolving any disputes that may arise between the accountant and the client. This helps to prevent any disagreements from escalating and can ultimately save time and money for both parties.

How to Write and Fill out a Construction Agreement?

Step-by-step guide to fill out Sign.Plus's construction agreement template

Contractor & Client Parties

Get started with your construction contract template by specifying the effective date which is between the Contractor and the Client. Then add the contractor's details, including their address, and the client's details, including their address. Both parties are referred to as "the Parties."

construction disclosing receiving parties

Construction Property

The construction property section is needed to describe the location and features of the property and to mention where the construction work will occur. It might include the address, legal description, and any relevant landmarks or boundaries.

Services

The "services" section in a construction contract specifies the nature of the construction services to be provided. It may include details such as the type of construction work (e.g., building a house, renovating a kitchen), the scope of the project, and any special requirements or features.

Term of Confidentiality

The "term and confidentiality section" of a construction contract typically covers two main aspects: the duration of the agreement and confidentiality obligations. The contract allows for the possibility of extending the term of the agreement beyond the initial end date. It states that any extension must be agreed upon in writing by both Parties.

Fees & Payment Terms

The "fees and payment terms" section of a construction contract outlines the financial aspects of the agreement between the Contractor and the Client. The "total contract price" specifies the total amount that the Client agrees to pay the Contractor for the construction services described in the contract. It's crucial because it sets the financial expectations for both parties. The payment schedule (A, B, C below) outlines when and how payments will be made.

Permits & Inspections

The "permit and inspections" section of a construction contract outlines the responsibilities of the Contractor regarding obtaining necessary permits, arranging inspections, and notifying the Client.

Permit Acquisition: The Contractor must acquire all the essential permits and licenses required by law for the construction project. This includes obtaining approvals from relevant authorities before commencing any work. By ensuring compliance with legal requirements, this protects both parties from potential legal issues and ensures that the construction proceeds smoothly.
Inspection Arrangements: The Contractor is responsible for arranging inspections as mandated by law throughout the construction process. This involves coordinating with the relevant authorities to schedule inspections at various stages of the project, such as during initial groundwork, structural construction, and final completion.
Notification to Client: The Contractor is required to inform the Client about scheduled inspections. This ensures transparency and allows the Client to be aware of the progress and compliance status of the construction project.

permits and inspections construction property contract

Contract Obligations

The "contract obligations" section of a construction contract outlines the responsibilities and commitments of both the Contractor and the Client throughout the project.

contractor obligations construction property contract

Insurance

The "insurance" section of a construction contract specifies the insurance responsibilities of both the Contractor and the Client to mitigate risks associated with the project.

The Contractor is responsible for purchasing an insurance policy for the construction. This insurance policy typically covers risks related to the construction activities, such as accidents, injuries, property damage, and liabilities arising from the project. By obtaining insurance, the Contractor safeguards against potential financial losses and liabilities during the construction process.
The Client is responsible for maintaining insurance that covers replacement costs in specific circumstances. These circumstances may include fire, theft, acts of nature (such as storms or earthquakes), and casualties (such as accidents or disasters). This insurance coverage protects the Client's interests by ensuring that they can recover the value of their property or assets in case of unforeseen events.

insurance construction property contract

Timeframe & Modifications

The "timeframe & modifications" section of a construction contract sets out the schedule for completing the work and procedures for making changes to the project. This establishes a clear timeframe for the project's completion, subject to weather and other unforeseen circumstances. The Contractor needs to also commits to informing the Client of any delays in completing the work.

The Client has the right to request changes to the work described in Section 2 of the agreement. However, any proposed changes must be submitted in writing and approved by both parties. Please note that additional fees may apply for any changes to the work.

timeframe and modifications construction property contract

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Frequently Asked Questions

What is the most common construction contract?

The most common types of construction contracts are fixed-price or lump-sum contracts, cost-plus contracts, and time and material contracts. Fixed-price contracts are the most common and involve a set price for the work to be performed.

What are the 5 elements of a construction agreement contract?

The five essential elements of a construction contract include:

An offer is made by the contractor, and acceptance is made by the owner, which forms the basis of the contract.
Consideration refers to the payment that is exchanged for the services provided by the contractor.
Scope of work: The scope of work outlines the work to be performed by the contractor, including the materials, schedule, and quality of work.
Terms and conditions: The terms and conditions of the contract specify the legal and practical details of the work, including payment terms, warranties, dispute resolution, and termination clauses.
The contract must be signed by both the owner and the contractor to demonstrate their agreement to the terms of the contract. This can be done by an online signature solution such as Sign.Plus.

What is the most common construction contract?

The most common types of construction contracts are “fixed-price” or “lump-sum” contracts.

What is the process for contract amendments?

If changes need to be made to a construction contract agreement, the parties must first agree to the changes and document them in writing. This is generally done through a change order, which outlines the changes to the scope of work, schedule, and payment terms. The change order must be signed and executed by both parties to ensure that the changes are legally binding. It is essential to document any changes to a construction contract to avoid disputes and ensure that all parties are aware of the changes.

Download Free Construction Contract Template Now!

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Download and customize our easy-to-use contract now to meet the unique needs of your business.

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Just a heads up – the content available on this site is intended for general information purposes only. At Sign.Plus, we are committed to offering valuable insights, yet it's important to acknowledge that we cannot guarantee the completeness, timeliness, or accuracy of all information presented.

This information should not be perceived as legal advice, nor should it substitute for professional legal counsel. For specific legal inquiries or advice, we strongly recommend consulting with a licensed attorney who can address your particular legal needs.