Canadian contractors, use this template to prepare a Fixed Price Construction Contract with Warranty for Canada.
- The contract includes a warranty by the contractor on materials and labour used in the construction.
- The contractor is responsible for Workers Compensation, public liability and property damage insurance, and all perils insurance, and indemnifies the owner against claims arising as a result of the contractor's operations.
- Changes to the work which are not included in the Construction Contract will be on the basis of either (i) a stipulated sum or (ii) actual cost plus a percentage.
- Disputes will be submitted first to the architect, and failing settlement, to arbitration.
The Canada Fixed Price Construction Contract with Warranty form is available as a fully customizable MS Word document.
THIS AGREEMENT made effective the ______ day of ____________, ________. BETWEEN: OWNER (the “Owner”) OF THE FIRST PART - and - CONTRACTOR (the “Contractor”) OF THE SECOND PART WHEREAS: A. The Owner desires to have the Contractor perform the following: hereinafter called the "work" B. The work shall be performed at the premises located at ______________________ and municipally described as: NOW THEREFORE the parties hereto undertake and agree as follows: 1. The Contractor shall provide all materials and perform all work as shown on the drawings and specifications for the work as prepared by _____________________________ (hereinafter called the “Architect” with further work clarification as specified in the final bid letter for the sum of $____________________. Copies of the bid letter and drawings and supplemental specifications are attached as Schedule “___” hereto and shall form part of this Agreement. 2. The Contractor will commence work by _______________________ and shall substantially complete work as certified by the Architect by _____________________. If the Contractor is delayed in the performance of the work by (a) an act or omission of the Owner, Architect, Other Contractor, or anyone employed or engaged by any of them directly or indirectly, contrary to the provisions of the Contract Documents, (b) a Stop Work Order issued by a court or other public authority and providing that such Order was not issued as a result of an act or fault of the Contractor or a person employed or engaged by him directly or indirectly, or -2- (c) labour disputes, strikes. lock-outs, fire, unusual delay by common carriers or unavoidable circumstances beyond the Contractor’s control, then the Contract Time shall be extended for such reasonable time as the Architect may decide in consultation with the Contractor, but in no case shall the extension of time be less than the time lost as a result of the event causing the delay, unless such shorter extension shall be agreed to by the Contractor. The Contractor shall not be entitled to payment for costs incurred as the result of such delays unless such delays are as the result of actions by the Owner. 3. The Owner shall pay on account, for the contract, based on the following criteria: Foundation: ___% Lock-up ___% Drywall ___% Completion 100% (See schedule attached) at which time, if no liens are filed, the funds shall be paid to the Contractor, together with interest. Invoices shall be delivered by courier. All late payments by the Owner shall be subject to interest at _____% per annum, such interest to be calculated based on the number of days and the dollar amount of such payment withheld. This interest shall accompany the payment to the Contractor. 4. A copy of each invoiced amount will be sent to the Architect for his approval. The Architect shall provide the Owner with an approved invoice not later than ____ days after having received the same from the Contractor. Unless objections to the invoiced amount are made, the invoice will be deemed satisfactory and the Owner shall be held responsible for payment within the specified time period as set out in paragraph _____. 5. The Contractor shall conduct the work in a safe and careful manner, and according to accepted construction practices. 6. The Contractor shall protect himself and indemnify and save the Owner harmless from any and all claims which may arise from the Contractor's operations under this Agreement. The Contractor's coverage shall include Worker's Compensation and Public Liability and Property Damage Insurance in the amount of $______________________ and All Perils Insurance, a copy of which shall be forwarded to the Owner. 7. Any portions of the premises that have been delivered to the Owner for his use and occupation will be covered by warranty from the day of occupation. In the event that warranty work is required on these areas, the Owner shall not be entitled to withhold or set off payment of amounts invoiced by the Contractor which have not been paid by the Owner. 8. Warranties will cover all materials and labour as supplied by the Contractor or its sub-trades for a period of _____ year(s) from substantial completion or occupancy, whichever comes first. However, the warranty will not exceed the manufacturer's warranties, nor will they cover normal wear and tear nor abuse or waste whether caused intentionally or by neglect. 9. The Contractor shall, at his sole expense, rectify any damage occurring to the Owner's property which occurs as a result of his activities or that of his sub-trades. Such damage shall be limited to obv
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