The towering buildings in Manhattan, which cast shadows on the busy streets of the city, were the result of the hard work and efficiency of engineers, architects, construction workers, and others. Without the collaboration of these people, we wouldn’t see sturdy buildings or even houses that would stand for years. Construction projects, no matter how big or small, should follow an organized procedure to be successful. This process and all other arrangements the parties involved have agreed-upon should be on a construction contract. Learn more about it in this article.

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FREE 15+ Construction Contract Templates

Editable Construction Contract Sample Template

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Landscape Sample Construction Contract Template

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Residential Construction Contract Template

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Pre Construction Contract Template

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Small Construction Contract Template

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Construction Contract Template

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Free Simple Construction Contract Template

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Free Basic Construction Contract Template

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Free Sample Construction Contract Template

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Construction Contract PDF Free

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Construction Contract Example

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Construction Contract Agreement

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Construction Contract Sample

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Construction Contract Checklist Template

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Simple Construction Contract

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Free Construction Contract Form

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Standard Construction Contract

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What Is a Construction Contract?

A construction contract or construction agreement is a legally binding document between the owner of a project and the contractor. The project owner is the in-charge of the overall construction project and the one who assumes its financing. On the other hand, the contractor is the party that provides everything to carry out the construction process. It includes materials, labor, equipment, and other necessary services. A sample construction contract or standard construction contract usually specifies the project schedule and who will participate in the process. Moreover, some of the elements of a simple construction contract are the following: the scope of services, description of the project, contract price, payment schedule and terms, and contract laws.

How to Write a Construction Contract

Writing an agreement between an owner and a contractor for construction will be less hassle if you have a residential construction contract template or even a basic construction contract template at hand. But if you want to learn how to create one yourself, here’s how:

1. Describe the Work to Do

The contract should specify the type of work to do. Aside from stating whether it is residential or commercial work, you must also detail the exact work to perform and the materials, machinery, and tools needed. Remember to be as specific as possible to avoid misunderstandings and to set clear expectations.

2. Write Down the Price and Payment Terms

For this step, you may refer to your contract checklist for a complete list of the financial information included in this section. Nevertheless, see to it that you state the fees involved in the process, contract price, non-refundable deposit, payment schedule, and final payment. Also, make sure to indicate the due dates for the payments and whether or not you will incur additional charges for late payments.

3. Include the Rules to Apply If There Are Changes

In a construction site, it is not a guarantee that everything will go according to plan. That is why you have to take into account the additional costs the client will incur due to unexpected work changes. It is essential to write the rules that will apply in case there are changes in the project, such as additional labor, tools, materials, or the adjustment in the scope of work.

4. Specify How to Resolve Issues

In the event that misunderstandings and disputes arise between the parties involved, it is crucial to prepare a remedy. For this reason, you must specify in the document how both parties will handle the situation. This way, there will only be minimum chances of filing lawsuits, and settling disputes will be faster. After finalizing the content, both parties should sign the document for it to take full effect.

FAQs

What are the three common types of construction contracts?

Project owners and contractors use different types of contracts, each with a different set of benefits and drawbacks. Three of the most common are:

  1. Fixed Price
  2. Cost Plus
  3. Guaranteed Maximum Price

What are the types of building contractors?

The different types of building contractors are the following:

  1. General Contractor
  2. Plumber
  3. Electrician
  4. Finish Carpenter
  5. Heating and Ductwork

What should I look for in a construction contract?

Bear in mind that contracts are a legally binding document. And the moment you sign it, you swear to adhere to everything stipulated in it. That is why it is a must to look into the following elements in a construction contract before you bind yourself into an agreement:

  1. Contact Details and Identity of Both Parties
  2. Project Description
  3. Project Timeline
  4. Estimation of Costs and Payment Schedule
  5. Stop Work and Payment Clause
  6. Warranty
  7. Signature with Dates

 

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