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Construction Contract

2 signers
1 Owner
2 Contractor
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What Is A Construction Contract?

A construction contract agreement is a legally acceptable document that lays out the terms of a construction project. The contract defines the work being done, the payment milestone, and any deadline, which both the parties involved must agree to. Before creating a construction contract agreement, you should consider checking our templates, which will help you create your own agreement quickly why it is important to have one before beginning any construction work.
Construction Contract

Why is a Construction Contract important?

Usually, a lot of money is invested in any construction project, which brings a lot of risk for the investor. Therefore a written contract is needed to allocate risks to save time and money in the execution of the project. Contracts are the medium through which both parties can save themselves from any future problem.  The agreement is used for each project is critical to the potential for best performance and execution of the project.

When Do you Need A Construction Contract?

You should start working on a contract after you have a verbal agreement with the contractor and before getting started with the work. The construction work to be carried out under the contract shall, except as otherwise provided in the contractor.  Before executing the contractor, you can consider discussing the same with a lawyer and make sure you’re completely legally protected through the agreement.
commission agreement template

Owner & General contractor

In the foremost part of the agreement you should mention the details of the party hiring the general contractor to complete construction on his or her property. And details of the contractor who’ll be working on the project.

commission agreement template

Description of work

In this section, you should mention a detailed description of the work and construction to be done by the contractor. For better clarity, you can consider attaching project plans and specifications to the agreement.

commission agreement template

Materials and labor

This is where a lot of confusion happens between the parties. Clearly mention which party will supply and pay for the cost of materials and labor.

commission agreement template

Starting and completion dates

In order to set the right expectations for your project outcome, don’t forget to mention the dates the contractor must start construction and have the construction substantially completed by.

FAQ About Our Construction Contract Template

Mostly all construction project job comes with some risk, because they costly and time consuming. And any big construction work involved a lot of complexities, starting from managing dangerous equipments to managing labor, and in order to manage everything efficiently, you need a legally binding contract.

Yes – of-course. Editing our template is very easy. Although it has been created considering general construction in mind, but you’re advised to edit the template as per your project need. You should consider consulting with a legal expert to proofread the contract before signing.

First, You should mention termination clause in your contract. If, for any reason, you need to cancel the contract how the payment will be processed etc., must be mentioned in the contract.

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