HOME CONSTRUCTION AGREEMENT
THIS AGREEMENT is made at ______________, ________, effective ____________, 20___, by and between _________________________________, an ________ corporation, (hereinafter the "Contractor"), and _____________________________________________ (hereinafter the "Owner" whether one or more.) 1. CONSTRUCTION: Contractor shall furnish all labor, materials, equipment and supplies for the construction and completion of a residence for Owner located in the township/city of ____________________, County of ___________________ and Street Address of ___________________________________________________, (hereinafter the "Residence"), in accordance with the provisions of this Agreement and the other contract documents referred to in paragraph 2 of this Agreement, (hereinafter collectively the "Contract Documents"). CONTRACT DOCUMENTS: This Agreement shall include the following "Contract Documents", each of which has been initialed concurrently with the execution of this Agreement, in duplicate, by Contractor and Owner, and all of which are hereby incorporated herein by reference: (a) (b) The Specifications dated ______________, _____, which are attached hereto. The Plans as shown on the drawings dated ____________, _____, which are attached hereto.
If any inconsistency shall exist between this Agreement, the Specifications and the Plans and/or any other documents or drawings, the terms and conditions of the Specifications shall control. 3. CONTRACT PRICE AND PROGRESS PAYMENTS : (a) Owner shall pay Contractor the amount of $________________, (hereinafter the "Contract Price"), for the construction of the Residence in accordance with the provisions of this Agreement and the Contract Documents, subject to adjustment by any properly made Change Order(s). Owner has deposited earnest money with Contractor in the sum of $________________. This deposit shall be applied to the Contract Price. Owner shall make progress payments of the Contract Price to Contractor in accordance with the following schedule:
Upon substantial completion of the excavation of the basement and the installation of the footers and basement walls, a sum equal to _____ percent (___%) of the Contract Price; and Upon substantial completion of the rough studwalls and installation of the sheeting on the roof, roofing shingles, and available windows and doors, a sum equal to _____ percent (___%) of the Contract Price; and Upon rough installation of the plumbing, heating, air conditioning systems, electrical and other pre-wiring and the installation of the insulation and drywall, a sum equal to _____ percent (___%) of the Contract Price; and Upon installation of vanities and cabinets, a sum equal to ______ percent (___%); and The remaining balance of the Contract Price and (any and all increased costs which Owner has not otherwise paid) upon Contractor's substantial completion as set forth within paragraph 4 herein below.
Contractor shall notify Owner when any of the aforesaid payments become due and payable. Owner shall have a period of _____ (___) calendar days after Contractor's notification, (hereinafter the "Inspection Period"), within which to inspect Contractor's progress and fully pay Contractor the requisite amount. Owner shall fully and timely pay the requisite amounts prior to the expiration of the Inspection Period. Owner shall pay interest in the amount of _____ percent (___%) per month upon any amount due and payable to Contractor hereunder beyond the Inspection Period. Escrow Agent shall disburse the Contract Price to Contractor in accordance with paragraph 3d below upon Contractor's presentation of written notice to Escrow Agent that any such disbursement(s) is/are due and payable and without need of any further instructions from Owner. (d) If Owner shall personally finance all or any part of the construction of the Residence, then prior to Contractor's commencement of construction, Owner shall deposit with __________________________________, (hereinafter the "Escrow Agent"), the portion of the Contract Price being personally financed by Owner. Escrow Agent shall hold the deposited portion of the Contract Price in a passbook savings interest-bearing account under Owner's social security number. Owner shall be entitled to all interest earned on such sum and shall satisfy Escrow Agent's fee for escrow services.
If Owner shall obtain any construction financing for the Residence, Owner shall sign all vouchers, drafts or bank checks representing draws within twenty-four (24) hours after the funds have been approved for release by Owner's lending institution. Owner acknowledges that Owner's delay in signing any bank documents shall be grounds for Contractor to stop work upon the Residence, which work Contractor shall not recommence until Owner has promptly and properly executed all requisite bank documents and the funds have been appropriately released to Contractor. In any event, Contractor shall receive payment upon any draw prior to expiration of the Inspection Period and all of the terms set forth within paragraph 3d hereof shall fully apply to construction financing.
FINAL PAYMENT: Final payment shall be due and payable to Contractor upon Contractor's substantial completion of the