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Construction Contract

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Construction Contract Powered By Docstoc
					A Construction Contract is a legal document that specifies the what, when, where, how,
how much, and by whom for a construction project. This contract includes mechanisms
for dispute resolution, description of the work, time-lines, schedules, payment details,
and warranties. This document contains the standard terms and conditions used for this
type of agreement, but also allows for optional language to be included making it fully
customizable to meet the needs of the contracting parties.
                         CONSTRUCTION CONTRACT
        This Construction Contract is hereby made on this [day] of [month] of [year]
(hereinafter the “Contract”) by and between [Client name/address] (hereinafter “Client”) and
[Contractor name/address] (hereinafter “Contractor"), collectively referred to herein as the
“Parties.”

                                         ARTICLE I
                       ENGAGEMENT/DESCRIPTION OF THE WORK

1.1     Client engages Contractor and Contractor agrees to provide to Client all necessary
services, materials, and labor necessary for the completion of [project description] (the
“Project”) including, but not limited to, all building and construction materials, requisite labor
and site security, and all necessary tools and machinery needed for project completion. All
construction materials should be new and of the highest quality, unless previously specified by
Client.

1.2    This Contract shall be comprised of the following: this Construction Contract, Conditions
of the Contract, Addenda, Drawings, Photos or other visual representations of the proposed
work, and the written Modifications attached to this Contract, properly signed and witnessed, all
of which are attached hereto as Exhibits.

                                         ARTICLE II
                        SCHEDULE AND TIME OF PERFORMANCE

2.1    Contractor will begin work on [date] to be completed by [date].

2.2     As this project is time sensitive, Contractor will be assessed a fee of _____ dollars ($__)
per day for each day that work is not completed after the final deadline of [date], unless Client
consents to a specified extension. Additional damages will be assessed and liquidated damages
will be deducted from the total payment amount due to Contractor under the payment schedule
specified in this Contract.

2.3    In the event that Client and Contractor agree on changes to the Project after this Contract
is executed, the Parties will agree to new time deadlines that are reasonable in light of the
modifications.

                                        ARTICLE III
                                    PAYMENT SCHEDULE

3.1      In consideration of the performance of this Contract, Client agrees to pay Contractor on
the following payment schedule for the services: [Phases/stages can be modified as necessary to
fit project specifications].




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3.2   For the performance of the design phase services, Contractor will receive a payment of
_____ dollars ($__).

3.3   For work or services performed during the design phase, Contractor will receive a
payment of _____ dollars ($__).

3.4   For work or services performed during the construction phase, Contractor will receive a
payment of _____ dollars ($__).

3.5    At work completion, Contractor will receive a fee of _____ dollars ($__).

        Within ____ (__) days of notification by Contractor of each stage of completion, Client
or its designee will inspect and approve the work or request any necessary adjustments to same.
Client agrees to make payments to Contractor within ___ (__) days of approving work. Payment
shall only be adjusted upon the mutual consent of both Parties if due to unforeseen events or the
parameters of the work are expended materially beyond the terms of this Contract. This Contract
and associated fees will be modified accordingly.

                                        ARTICLE IV
                                        COMPLETION

4.1     Contractor sets the following schedule for work completion, with various project stages
to be completed on specified dates. [Insert project stages and dates]

                                        ARTICLE V
                                  CHANGES TO THE WORK

5.1     All changes or modifications to the work ordered by Client must be made in writing, with
appropriate adjustments made to the total payment and payment schedule. The approval of both
Parties shall be required for substantial project changes such as the date of completion, project
price, and substantive modifications to the project itself, and notification of these changes must
be made in a timely manner.

5.2    If these changes should require additional expense to Contractor, Contractor must make a
claim for increase in payment, in writing, to Client, in a timely manner. Client must approve this
claim for increase in writing prior to any changes to the work, project, or schedule.

                                        ARTICLE VI
                                            DELAYS

6.1     If Contractor is delayed from completing required work due to unavoidable casualties,
Client shall grant Contractor an extension for the completion of work equal to the delay.
Unavoidable casualties include, but are not limited to, fire, flood or natural disasters, delayed
acquisition of materials or material delivery, and negligence on the part of Client.

6.2    In the event of unavoidable casualties, Contractor shall properly document both the event


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and the impact of that event on project completion. Documentation shall be presented to Client
in a timely manner.

                                        ARTICLE VII
                                   RIGHT TO STOP WORK

7.1    If Contractor fails to correct defective work or persistently fails to supply materials or
equipment in accordance with the Contract Documents, Client may order Contractor to stop the
work, or any portion thereof, until the cause for such order has been eliminated.

                                       ARTICLE VIII
                         CLIENT’S REPRESENTATIVE (OPTIONAL)

8.1    Client’s representative or construction manager (“Client Representative”) shall be:
[name].

8.2     Client’s Representative shall be permitted to represent the interests of Client to
Contractor, and shall make regular site visits to assess work progress. Client’s Representative
will be scheduled to visit the project site every [specify time period].

8.3      Client’s Representative shall be permitted to assess the work of Contractor and provide
recommendations to Client about the status of progress payments. Additionally, Client’s
Representative shall possess the authority to accept or reject work of Contractor and direct
Contractor to make modifications to defective or non-conforming work.                     Client’s
Representative’s demands shall be reasonable, and Client’s Representative can only reject work
if it is defective or materially different from the project specifications as agreed upon between
Contractor and Client.

8.4    If Contractor fails to comply with the directions of Client’s Representative, Client’s
Representative may direct Contractor to stop all work until remedy is reached.

                                        ARTICLE IX
                         ACCESS AND CONDITION OF PREMISES

9.1     Free access to the work and project site shall be granted by Contractor to Client, Client’s
Representative, the designated agents of Client and Client’s Representative, and all necessary
public authorities.

9.2     Contractor agrees to keep the premises clean and orderly. Contractor shall remove all
debris as needed during the hours of work in order to maintain work conditions free of health or
safety hazards.
                                         ARTICLE X
                      WORK PERFORMANCE AND WORK QUALITY

10.1 Contractor shall conduct its activities in a professional manner and adhere to the
reasonable wishes of Client in relation to its working schedule. Additionally, Contractor’s work


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shall adhere to and be in compliance with both the Standard Practices of the Trades and any
relevant Manufacturers Specifications.

10.2 Contractor shall protect all work adjacent to the Project site from any damage resulting
from the work of Contractor and shall repair or replace any damaged work at its own expense.
Contractor shall take all precautions to protect persons from injury and unnecessary interference
or inconvenience.
                                       ARTICLE XI
                                         WARRANTY

11.1 Contractor hereby warranties that the work performed and the Project completed will
meet the standards set forth and agreed upon by the Parties. Contractor agrees to fix and
otherwise remedy any defects found by Client in the work within [specify time period] at
Contractor’s own cost. This includes defects caused by natural phenomena such as [specify
relevant phenomena for the project/geographical area].

11.2 Contractor is only responsible for damage resulting to the Project from negligence,
dangerous activities, intentional disregard of professional standards of care normally exercised
within the industry, or breach of any governmental statute, ordinance, local rule, or law.

                                       ARTICLE XII
                 INDEMNIFICATION AND LIMITATIONS ON LIABILITY

12.1 Client agrees to hold harmless, indemnify, and defend Contractor and each individual or
entity that is an agent, affiliate, partner, officer, or stockholder of same against any and all
claims, losses, liabilities, damages, and expenses, including legal fees, fines, judgments,
settlement amounts all made in connection with, or arising from errors in any representation or
warranty made by Client under this Contract, any breach of the Contract by Client, or any
omission or negligent act or error by Client in connection with this Contract, provided that such
negligent act, omission, or error was not done at the direction of Contractor.

12.2 Contractor agrees to hold harmless, indemnify and defend Client and each individual or
entity that is an agent, affiliate, partner, officer, or stockholder of same against any and all
claims, losses, liabilities, damages, and expenses, including legal fees, fines, judgments,
settlement amounts all made in connection with, or arising from errors in any representation or
warranty made by Contractor under this Contract, any breach of the Contract by Contractor, or
any omission or negligent act or error by Contractor in connection with this Contract, provided
that such negligent act, omission, or error was not done at the direction of Client.

                                      ARTICLE XIII
                                         INSURANCE

13.1 Client shall be responsible for maintaining full insurance coverage on the work site in
both Client’s and Contractor’s name.

13.2   Contractor shall be responsible for insurance to protect against any property damage,


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bodily injury, death, or other claims for damages that may result from the commission of the
work, including workers’ compensation insurance for its employees or sub-contractors.

                                       ARTICLE XIV
                                  LICENSES AND PERMITS

14.1 Contractor will be responsible for obtaining the necessary permits and licenses to fulfill
the services specified in this Contract.

                                       ARTICLE XV
                                             FINES

15.1 Contractor is responsible for maintaining proper work, safety, and environmental
protection standards. Contractor agrees to hold Client harmless for all fines from federal, state,
or local agencies and regulators. Contractor will work in compliance with all standards required
by the EPA, OSHA, and other applicable federal agencies. Contractor will be responsible for
paying all fines and judgments levied by these agencies resultant from the performance of this
Contract.
                                       ARTICLE XVI
                                RELATIONSHIP OF PARTIES

16.1 The relationship created between the Parties shall be limited to that of independent
contractors. Neither party shall undertake any actions that would imply or seek to establish, any
partnership, ownership, employment, joint venture, or trust relationship between the Parties,
except by amendment to this Contract.

                                      ARTICLE XVII
                                        ARBITRATION

17.1 Any dispute or claim related to or arising from this Contract, its performance, breach,
interpretation, validity, or enforceability, shall be exclusively (except as provided below)
resolved by final binding arbitration before the American Arbitration Association (AAA),
utilizing AAA Commercial Arbitration Rules.

17.2 The arbitrator shall be selected using AAA procedures. The arbitrator shall render a
written decision within thirty calendar days of the hearing. The arbitrator may award attorneys’
fees or punitive, incidental, consequential, treble, or other multiple or exemplary damages.

17.3 Awards shall be final, binding, and non-appealable, with the exception of the grounds for
appeal guaranteed by the Federal Arbitration Act and applicable laws. All awards may be filed
with one or more courts, state, federal, or foreign having jurisdiction over the party against
whom such award is rendered or its property, as a basis of judgment and of the issuance of
execution for its collection.

                                      ARTICLE XVIII


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                                          GENERAL

18.1 Both Parties are expressly prohibited from assigning this Contract or any rights or interest
flowing therefrom. Assignment will only occur with the express written consent of both Parties.

18.2 This Contract contains the entire agreement and understanding between the Parties and
supersedes any prior or contemporaneous written or oral Contracts, representations, and
warranties between them respecting the subject matter of this Contract.

18.3 This Contract will be interpreted and enforced under the laws of the State of [State],
without regard to conflict of laws.


       IN WITNESS WHEREOF, the Parties hereto execute this Contract:

CLIENT                                              CONTRACTOR



Authorized Signature                                Authorized Signature


Name and Title                                      Name                     and                    Title




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DOCUMENT INFO
Description: A Construction Contract is a legal document that specifies the what, when, where, how, how much, and by whom for a construction project. This contract includes mechanisms for dispute resolution, description of the work, time-lines, schedules, payment details, and warranties. This document contains the standard terms and conditions used for this type of agreement, but also allows for optional language to be included making it fully customizable to meet the needs of the contracting parties.
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