Construction Contract
This Construction Contract (hereinafter referred to as the “Contract”) is entered into this 10th day of December, 2020, by and between John Smith, hereinafter referred to as the (“Contractor”) and Jane Doe, herein referred to as the (“Owner”).
The owner desires for the contractor to construct a residential building which shall include a living room, kitchen, bedroom, bathrooms and associated other necessary features, hereinafter referred to as the (“Construction”).
In consideration of the mutual promises to be performed, the contractor and owner agree to the following:
1. Contractor Responsibilities. The contractor shall be responsible for all aspects of the Construction, including but not limited to:
• Procurement of all necessary material and supplies for the Construction;
• Hiring and management of all necessary subcontractors required for the Construction;
• Estimating cost of the Construction;
• Supervising the Construction;
• Signing the necessary documents related to the Construction; and
• Meeting all timelines and schedules associated with the Construction.
2. Payment. The payments to the contractor shall be made in full as specified herein and as provided in the cost estimates and bills or as otherwise agreed upon in writing, including:
• An Upfront fee payable prior to the start of the Construction;
• Progress payments upon completion of various milestones of the Construction; and
• Last Payment upon completion of the Construction, final inspection and the issuance of the Certificate of Occupancy.
3. Licenses and Insurance. All licenses, permits, and approvals necessary for the Construction of the Building shall be obtained and maintained by the contractor at its own cost and expense at all times and in compliance with all applicable laws and regulations. The contractor shall also provide a Certificate of Insurance and all necessary coverage for the Construction.
4. Representation and Warranties. Each of the Parties represents, warrants, and covenants to the other Party that it has the full legal power and authority to enter into this Contract and to carry out its obligations hereunder.
5. Term and Termination. The term of the Contract shall be 12 months, unless and until sooner terminated in accordance with the terms of this Contract or Extended by mutual agreement of the Parties hereto.
6. Indemnification and Insurance. The contractor shall indemnify, defend, and hold harmless the Owner, its agents, employees, subcontractors or other persons working on the Contract, and any of their respective officers, directors, affiliates, shareholders, and assigns from and against any and all losses, damages, liabilities and expenses, including reasonable legal fees and costs arising out of or resulting from the performance of the contractor s obligations under this Contract and from any and all claims, demands, suits, judgments, and other proceedings of any kind in connection therewith;
7. Default and Breach of Contract. In the event either Party breaches or otherwise defaults in any of its obligations under this Contract, and fails to remedy such breach or default within fifteen (15) days after notice of the breach, then the non-breaching and non-defaulting Party shall have the right to terminate this Contract and recover from the breaching and defaulting Party all damages caused by such breach or default.
8. Dispute Resolution. The Parties agree to cooperate in good faith to attempt to resolve amicably any disputes that may arise under this Contract through mediation. The Parties shall select an unbiased mediator to mediate such dispute.
9. Notices. All notices, demands, requests, and other communications required or permitted under this Contract shall be in writing and shall be deemed to have been given when delivered personally, mailed by Registered or Certified Mail, postage prepaid, return receipt requested, addressed to the Parties as provided below:
[Cotractor Name & Address]
[Owner Name & Address]
10. Entire Agreement. This Contract contains the entire understanding and agreement between the Parties relating to the subject matter herein and supersedes all prior and contemporaneous negotiations, understandings, and agreements, whether oral or written, between the Parties respecting this Contract.
IN WITNESS WHEREOF, each Party represents and warrants that he or she:
[Contractor]
[Owner]
By affixing their signatures below, the Parties hereto agree and confirm that the terms contained in this Contract are fair and reasonable and that the Parties intend to be legally bound by the terms of this Contract.
[Contractor]
[Owner]
