Sample Construction Contract Agreement

Using Docubee’s sample construction contract agreement template ensures you don’t miss crucial sections within your agreements. This template can be customized to fit specific project needs while saving you time on legal language and formatting.

Please note you should always consult a legal professional to review contracts to ensure compliance with local and state regulations.

The Importance Of A Construction Contract

Construction contracts allow two parties to agree on terms and conditions. These legally binding documents ensure stakeholders meet their promises despite unexpected delays or changes.

Critical functions of construction contract agreements include:

1. Clearly defining project scope and expectations
2. Establishes legal protection for all parties involved
3. Sets clear payment terms and eliminates ambiguity with detailed payment schedules
4. Outlines responsibilities, obligations, and risk allocation
5.  Instructions for handling changes or modifications
6. Warranties to protect the buyer
7. A process for dispute resolution
8. Compliance with regulatory requirements
9. Creating transparency and trust between buyers and providers

Construction contract management tools allow you to meet this criteria with reusable documents that eliminate extra work.

The Key Sections In A Construction Contract

Understanding what to include in a contract ensures your business is covered. Here’s a little construction contract agreements 101 about which sections matter most:

Project Scope: 

The project scope section of a construction contract outlines jobs to be done, including specifics such as tasks, materials, and standards required. Detailed plans or drawings and any exclusions or limitations are often included.

Timeline and Milestones: 

The timelines and milestones section of a construction contract designates the project’s start and finish dates, notable milestones, and deadlines to be met. This section usually includes allowances for delays and instructions for handling schedule changes.

Payment Terms: 

Payment terms in a construction contract specify the total contract price, payment schedule, and payment collection methods. They also detail any retainage (withheld amount until project completion), deposit requirements, and penalties for late payments.

Change Orders: 

The change order section of a contract defines the process for handling project changes, including changes to scope, time, or cost. This ensures all parties adequately document and agree upon any updates.

Roles and Responsibilities: 

The roles and responsibilities section outlines each party’s obligations and duties, including project management, procurement of materials, and any subcontracting requirements.

Warranties and Guarantees: 

Finally, the warranties and guarantees section ensures quality work is completed by specifying any promises on materials, workmanship, and timelines for any repairs or corrections needed after completion.