Fillable Form Construction Contract Agreement

What is a Construction Contract Agreement?

A Construction Contract Agreement is a binding document between a property owner and a contractor, specifying the construction, renovations, alterations, or other work to be done on the property owner’s land.

A Contract Agreement for Construction Work, sometimes called, “Construction Agreement” or “Construction Contract”, outlines which parties will be engaged, the price to be paid, the rights of each party, and the date construction will commence and be completed.

A Construction Contract Agreement Template should contain several sections of clauses defining the scope, terms, and conditions of the project, including:

• What work will be done
• When it will start and be completed by
• Which parties will participate in the construction process
• The cost of labor and materials
• How the parties will communicate
• Procedures for changing the scope of work or other parts of the agreement
• How disputes will be resolved

In addition, the Contract Agreement For Construction Work PDF protects both parties involved in construction projects. It defines the scope of work, payment terms, and provides methods of settling disputes. Without a proper contract, any disagreements or miscommunication over the work involved in the project, schedule, missed or late payments, or other concerns could escalate into a major legal battle. This can become costly for both parties.

Having a Construction Contract Agreement protects the legal and financial interests of everyone involved in construction work. Both parties should not agree to start working without one.

How to fill out a Construction Contract Agreement?

Using PDFRun, you can electronically fill out and download a PDF copy of the Construction Contract Agreement PDF in minutes. Fill it out by following the instructions below.

Date of the Agreement

Enter the date the agreement was made, following the format: Day, Month, Year.

Name of the Owner

Enter the name of the owner or the client. Mark the box if the owner is:

• Individual
• Business Entity

Address of the Owner

Enter the address of the owner.

Name of the Contractor

Enter the name of the contractor. Mark the box if the contractor is:

• Individual
• Business Entity

Address of the Contractor

Enter the address of the contractor.

Contractor’s License Number

Enter the contractor’s license number.

The parties agree as follows:

Section 1: Description of Work

Property

Enter the address of the property where the work will be performed.

Work

Enter a detailed work description.

Section 2: Contract Price and Payments

Contract Price

Enter the total amount of the contract price.

Payment

Mark the appropriate box of how the payment will be made. You may select:

• Cash
• Personal Check
• Cashier’s Check
• Money Order
• Credit Card or Debit Card
• Wire Transfer
• Other – Then, enter another mode of payment on the space provided.

Payment Schedule

Deposit

Mark the appropriate box if the payment will be by means of a deposit. You may select:

• A deposit is NOT required.
• Enter the amount deposit, due upon the execution of this agreement.

Installments

Mark the appropriate box if the payment will be by means of installments. You may select:

• There will be NO installment payments.
• Installment will be paid at set intervals. Enter the amount due and mark the appropriate payment schedule if every week or every month. Enter another schedule, if applicable.
• Installments will be paid upon the completion of the following milestones:
  • Enter the amount due upon (enter what milestone).
  • Enter the amount due upon (enter what milestone).
  • Enter the amount due upon (enter what milestone).

Then, enter the amount of balance due upon completion of the work.

Section 3: Certificate of Completion

Enter the starting and completion date of the work, following the format: Month, Day, Year.

Upon the completion of the work, the contractor shall notify the owner that the work is ready for final inspection and acceptance. The owner shall make the final payment within (enter the number of days) days after the final inspection.

Section 4: Materials and Labor

This section states that the contractor shall provide and pay for all labor and equipment, including tools, construction equipment, machinery, transportation, and all other facilities and services, and all materials necessary for the completion of the work. All materials shall be in good quality and new, unless the Contract Documents require or permit otherwise. The contractor may substitute materials only with the prior written approval of the owner.

Mark the boxes that apply with regards to Section 4: Materials and Labor. You may select:

• The following materials will not be included in the contract price and are the sole responsibility of the owner and will not be covered under warranty by the contractor: Enter a list of the materials.
• In addition, the contract price shall include the following fixtures: Enter a list of the equipment or furniture.

Section 5: Licenses and Permits

Mark the appropriate box of who shall obtain all licenses and permits necessary for proper completion of the work. You may select:

• Contractor
• Owner

Mark the appropriate box of who is responsible for the cost of any necessary permits or licenses. You may select:

• Contractor
• Owner

Section 6: Laws and Regulations

This section states that the contractor shall perform the work in a workmanlike manner and in compliance with all applicable federal, state, and local laws, regulations and ordinances, trade standards, ethical guidelines, and any safety requirements of the owner (the Applicable Laws). The contractor shall promptly notify the owner upon discovery of any variance between the Applicable Laws and the Construction Documents.

Section 7: Supervision of Construction

This section states that the contractor shall be solely responsible for and shall supervise and direct all construction under this agreement. The contractor shall provide competent and suitable personnel to perform the work and shall at all times maintain good discipline and order at the property. The contractor will at all times take all reasonable precautions for the safety of its employees and the public at the property. The contractor agrees to assume full responsibility for the acts, negligence, and/or omissions of its employees and any subcontractors and their employees.

Section 8: Record Documents

This section states that the contractor shall maintain in a safe place at the property one record copy of all drawings, specifications, addenda, written amendments, and the like in good order and annotated to show all changes made during construction, which will be delivered to the owner upon completion of the work. The owner shall have the right to inspect and review such documents upon notice to the contractor.

Section 9: Utilities

Mark the appropriate box of who shall pay for all permanent electric, water, phone, cable, sewer, and gas services as needed to perform the work. You may select:

• Contractor
• Owner

Mark the appropriate box of who shall pay for the installment, connection, and removal of all temporary utilities on the property during the performance of the work. You may select:

• Contractor
• Owner

Section 10: Hazardous Materials

This section states that unless otherwise provided in the Contract Documents, the contractor shall be responsible for all hazardous materials brought to the property by the contractor.

Hazardous materials shall include radioactive materials, asbestos, polychlorinated biphenyls, petroleum products, crude oil, flammable materials, chemicals or solvents known to cause cancer or reproductive toxicity, pollutants, contaminants, and toxic substances which are restricted, prohibited, or regulated by any agency of government in its manufacture, use, maintenance, storage, ownership, or handling.

If the contractor discovers any hazardous materials on the property, the contractor shall immediately notify the owner and may cease working until the material or substance has been rendered harmless.

This section also states that the owner shall defend, indemnify, and hold harmless the contractor, any subcontractors, and their respective agents and employees from and against all claims, damages, losses, and expenses, including attorney’s fees, arising out of or resulting from contact with hazardous substance in performance of the work resulting in bodily injury, illness or death, or injury or property damage, provided such claim, damage, loss, or expense is not the result of any negligent act or omission by the party seeking indemnity.

Section 11: Warranty

This section states that the contractor warrants that the work shall be in accordance with the Contract Documents, Applicable Laws, and trade standards and free from material structural defects, improper workmanship, or defective materials. The contractor shall replace, correct, or repair any work not in accordance with the Contract Documents, Applicable Laws, and trade standards or any defects caused by faulty materials, equipment, or workmanship for a period of (enter the number of years) years from the date of completion of the work.

Section 12: Condition of the Property

This section states that the contractor agrees to keep the property and adjoining driveways free and clear of waste material and rubbish. The contractor shall confine the storage of materials and equipment and the operations of employees to the property, and shall not unreasonably encumber the property with materials or equipment. The contractor shall be fully responsible for any damage to the property or areas contiguous thereto resulting from the performance of the work. At the completion of the work, the contractor shall remove all waste materials, rubbish, and debris from and about the property as well as all tools, appliances, construction equipment and machinery, and surplus materials, and shall leave the property clean and ready for occupancy by the owner.

Section 13: Inspection

This section states that the owner shall have a right to inspect the work at any time and request that the contractor promptly corrects any work that is defective or does not conform to the Contract Documents. If required, the work shall be inspected and certified by the appropriate state or local agency or health officer at each necessary stage.

Section 14: Right to Stop Work

This section states that if the contractor fails to correct any defective work or repeatedly fails to perform the work in accordance with the Contract Documents, the owner shall have the right to order the contractor to stop performing the work, or any portion thereof, until the cause for such order is eliminated.

Section 15: Subcontracts

This section states that the contractor shall furnish to the owner a list of names of subcontractors proposed to perform principal portions of the work. The contractor shall not employ any subcontractor to whom the owner reasonably objects.

A subcontractor, for the purposes of this agreement, shall be a person with whom the contractor has a direct contract for work at the property. All contracts between the contractor and the subcontractor shall be in accordance with the terms of this agreement and the Contract Documents.

Section 16: Work Changes

This section states that the owner reserves the right to order changes to the work in the nature of additions, deletions, or modifications, without invalidating this agreement and agrees to make corresponding adjustments in the contract price and time of termination if applicable. All changes will be authorized in a written “Change Order” signed by the owner and the contractor, which shall be incorporated by reference herein.

Section 17: Other Contractors

This section states that the owner reserves the right to enter into other contracts in connection with the work. The contractor shall cooperate with all other contractors so that their work shall not be impeded, and shall give them access to the property as necessary to perform their contracts.

Section 18: Indemnification

This section states that the contractor agrees to defend, indemnify, and hold harmless the owner and its agents and employees, from and against all claims, actions, liabilities, suits, demands, injuries, obligations, damages, losses, settlements, judgments, fines, penalties, costs and expenses, including reasonable attorneys’ fees, arising out of any negligent act or omission by the contractor, a subcontractor or anyone directly or indirectly employed by them in the performance of the work resulting in bodily injury, illness or death, or for property damage, including loss of use, unless caused by the sole negligence or willful misconduct of the owner.

Section 19: Contractor’s Insurance

This section states that the contractor agrees to maintain at its own expense during the entire period of the construction of the property.

• General Liability Insurance

Enter the amount the contractor will be liable for each occurrence of property damage and bodily injury.

Mark the boxes that apply for the contractor’s insurance. You may select:

• Workers’ Compensation Insurance

• Automobile Liability Insurance – Enter the amount the contractor will be liable..

• Other Insurance – Enter other insurance, if any.

Mark this box if the contractor shall name the owner as an additional insured, except for the workers’ compensation insurance.

Section 20: Waiver of Subrogation

This section states that the owner and the contractor each waive any and all claims or rights to recovery against the other party for any loss or damage to the extent such loss or damage is covered by insurance or would be covered by any insurance required under this agreement. The owner and the contractor shall cause each insurance policy carried by the owner and the contractor relating to the property to include or allow a full waiver of any subrogation claims.

Section 21: Time of Essence

This section states that all times stated in this agreement or in the Contract Documents are of the essence. The contractor agrees that such times are reasonable for performing and completing the work.

Section 22: Liquidated Damages

Mark the appropriate box for the liquidated damages. You may select:

• Owner is entitled to liquidated damages. In the event the work is not completed by the date set forth in Section 3 of this agreement, plus any extensions thereof as allowed in this agreement, the owner shall suffer damages uncertain in amount and difficult to measure and prove accurately. The owner and the contractor agree that in lieu of actual damages, and not as penalty, for delay in performance of the work, the contractor shall pay the owner the sum of (enter the amount) for each calendar day completion of the work is delayed. The contractor agrees that the liquidated damages specified herein are reasonable in amount and are not disproportionate to actual anticipated damages. The owner shall have the right to deduct any liquidated damages from any amount due or that may become due to the contractor. The liquidated damages shall be the sole and exclusive remedy for the owner for the delay in completion of work past the agreed upon date.
• Owner is NOT entitled to liquidated damages.

Section 23: Extension of Time

This section states that the times stated in this agreement may be extended for such reasonable time as the contractor may determine when performance of the work by the contractor is delayed by a Change Order, labor disputes, fire, unusual delay in deliveries, abnormal adverse weather conditions, unavoidable casualties, or other causes beyond the contractor’s control or which justify the delay.

Section 24: Early Termination for Breach of Contract

• Contractor’s Termination

This section states that the contractor may, on (enter the number of days) days’ written notice to the owner, terminate this agreement before the completion of the work when for a period of (enter the number of days) days after progress payment is due, through no fault of the contractor, the owner fails to make a payment. On such termination, the contractor may recover from the owner payment for all work completed and for any loss sustained by the contractor for the materials, equipment, tools, or machinery to the extent of the actual loss thereon, plus loss of a reasonable profit.

• Owner’s Termination

This section states that the owner may, on (enter the number of days) days’ notice to the contractor, terminate this agreement before the completion of the work, and without prejudice to any other remedy the owner may have when the contractor defaults in the performance of any provision of this agreement, or fails to carry out performance of the work in accordance with the provisions of the Contract Documents.

Excess Payment

Mark the boxes that apply for the excess payment. You may select:

• If the unpaid balance on the contract price at the time of the termination exceeds the expense of finishing the work, the owner shall pay such excess to the contractor.
• If the expense of finishing the work exceeds the unpaid balance of the contract price at the time of the termination, the contractor shall pay the difference to the owner.

Section 25: Disputes

Mark the appropriate box on how any dispute arising from this agreement shall be resolved. You may select:

• Court litigation. The dispute shall be resolved in the courts of the State of (select from the drop-down list).
• Attorney’s Fees. If either party brings legal action to enforce its rights under this agreement, the prevailing party will be entitled to recover from the other party its expenses (including reasonable attorneys’ fees and costs) incurred in connection with the action and any appeal.
• Arbitration. The dispute shall be resolved through binding arbitration conducted in accordance with the rules of the American Arbitration Association.
• Mediation. The dispute shall be resolved through mediation.
• Mediation then arbitration. The dispute shall be resolved through mediation. If the dispute cannot be resolved through mediation, then the dispute will be resolved through binding arbitration conducted in accordance with the rules of the American Arbitration Association.

Section 27: Counterparts

This section states that this agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together, shall constitute one and the same document.

Section 28: Headings

This section states that the section headings herein are for reference purposes only and shall not otherwise affect the meaning, construction, or interpretation of any provision of this agreement.

Section 29: Notices

This section states that any notice or communication given or made to any party under this agreement shall be in writing and delivered by hand, sent by overnight courier service or sent by certified or registered mail, return receipt requested, to the address stated above or to another address as that party may subsequently designate by notice and shall be deemed given on the date of delivery.

Section 30: Assignment

This section states that no party hereto shall have the right to assign its rights or delegate its duties hereunder without the written consent of the other party, which consent shall not be unreasonably withheld.

Section 31: Binding Effect

This section states that this agreement shall be binding and enure to the benefit of the parties and their respective legal representatives, heirs, administrators, executors, successors, and permitted assigns.

Section 32: Governing Law

This section states that this agreement and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of (select from the drop-down list), without regard to its conflicts of laws provisions.

Section 33: Severability

This section states that if any provision of this agreement is held to be invalid, illegal, or unenforceable in whole or in part, the remaining provisions shall not be affected and shall continue to be valid, legal, and enforceable as though the invalid, illegal, or unenforceable part had not been included in this agreement.

Section 34: Entire Agreement

This section states that this agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof, and supersedes all prior negotiations, understandings, and agreements.

Section 35: Amendments

This section states that this agreement may not be amended or modified except by a written agreement signed by all of the parties.

Section 36: Waiver

This section states that no party shall be deemed to have waived any provision of this agreement or the exercise of any rights held under this agreement unless such waiver is made expressly and in writing. The waiver by any party of a breach or violation of any provision of this agreement shall not constitute a waiver of any other subsequent breach or violation.

Section 37: Survival

This section states that the obligations of the contractor expressly identified in this agreement, or those by operation of law, shall survive the completion of work or termination of this agreement.

Section 38: Industry Language

This section states that the language used for terms of this agreement, unless otherwise defined, shall be construed according to the customary meaning within the construction industry in the area where the project is located and for the type of work being performed.

Section 39: Independent Contractor

This section states that the contractor acknowledges that it is an independent contractor and is not an agent, partner, joint venture, nor employee of the owner. The contractor shall have no authority to bind or otherwise obligate the owner in any manner nor shall the contractor represent to anyone that it has the right to do so. The contractor further agrees that in the event that the company suffers loss or damage as a result of a violation of this provision, the contractor shall indemnify and hold harmless the owner from any such loss or damage.

Section 40: Rights of Third Parties

This section states that nothing in this agreement shall create or give to any third party a claim or right of action against the contractor or the owner.

Section 41: Confidentiality

Mark the appropriate box that fits for the confidentiality of this agreement. You may select:

• As a result of the contractor’s participation in the work, the contractor will have access and contribute to information and materials of a highly sensitive nature, including confidential information. The contractor hereby warrants that the contractor and its employees and agents shall not (without in each instance obtaining the owner’s prior written consent) disclose, make commercial or other use of, or give or sell to any person, firm, or corporation any confidential information received directly or indirectly from the owner, or acquired or developed in the course of the performance of this agreement unless:
  • Required to do so pursuant to Applicable Laws (and then only after the contractor has given the owner prompt written notice of the legal compulsion and, at the owner’s expense, provided by the owner with cooperation in any attempt the owner may make to gain a protective order acceptable to the owner;
  • It is rightfully in the possession of the contractor from a source other than the owner prior to the time of disclosure of the information to the contractor under this contract;
  • It was in the public domain prior to the time of the contractor’s receipt
  • It became part of the public domain prior to the time of the contractor’s receipt by any means other than an authorized act or omission on the part of the contractor;
  • It is supplied to the contractor after the time of the contractor’s receipt by a third party who was not under any obligation to the owner to maintain such information in confidence;
  • It was independently developed by the contractor prior to the time of its receipt from the owner.

All confidential information, regardless of form, shall be the property of the owner and shall be returned to the owner upon its request, or in any event, at the completion or earlier termination of this agreement.

• The contractor will NOT have access and contribute to confidential information.

Section 42: Other

Enter another provision, if any.

Owner Signature

Affix the owner’s signature.

Owner Full Name

Enter the owner’s full name.

Owner Representative Signature

Affix the owner representative’s signature.

Owner Representative Name and Title

Enter the owner representative’s full name and the title that describes his or her role.

Contractor Signature

Affix the contractor’s signature.

Contractor Full Name

Enter the contractor’s full name.

Contractor Representative Signature

Affix the contractor representative’s signature.

Contractor Representative Name and Title

Enter the contractor representative’s full name and the title that describes his or her role.

Certificate of Completion

Contractor Name

Enter the contractor’s full name.

Property Address

Enter the property address.

Contract Date

Enter the contract date following the format: Month, Day, Year.

Completion Date

Enter the completion date following the format: Month, Day, Year.