What to include in a construction contract agreement?

Worksite: The address of the property where the construction is to be completed. Description of work: A detailed description of the work and construction to be done by the contractor. You can also attach project plans and specifications to the agreement.

Who is the owner of the construction contract?

The sample construction contract agreement below details an agreement between the owner, ‘Anthony E Cummins’, and the contractor, ‘David C Ortiz.’ David C Ortiz agrees to perform work on the property owned by Anthony E Cummins.

What happens if you don’t use a construction contract?

Not using a Construction Contract Agreement can cause headaches for all involved. Say your contractor and his team suddenly stopped working, and he or she is demanding excessive payment for materials and labor not originally agreed upon. Or, your client, the owner, is refusing to pay you after completion of the project.

How does a cost plus construction contract work?

Cost or cost-plus: In a cost-plus contract, the owner reimburses the contractor for all costs incurred during the construction such as materials and labor. The owner also pays an agreed-upon profit margin, usually a flat fee or percentage of total costs.

What to look for and avoid when signing a home-building contract?

For example, if the completion date set forth in the contract is May 1, and construction is not complete by that date, the contractor would be required to pay the owner a per diem amount for each additional day of construction.

When does the contractor have to complete the work?

The Contractor shall complete the Work within [Enter number of days ] calendar days after the Commencement Date, subject to any allowable delays or extensions (the “Completion Date”) 3.3 Schedule of Work. The Contractor shall within a reasonable time following the Commencement Date provide a schedule outlining the following:

When to inform the owner of a construction project?

The Contractor shall inform the Owner when it reasonably believes the Services are completed and within [Enter number of days] days thereafter the Owner shall inspect the Property and provide to the Contractor a list of items to be completed or corrected (the “List”).

What do the parties agree to in a construction contract?

THEREFORE in consideration of their respective benefits, duties and obligations hereunder the Recipient and the Contractor (collectively “the Parties”) do hereby agree as follows: 1. SERVICES 1.1 Services.