Residential Construction Contract

A Residential Construction Contract is used to establish an agreement between a homeowner and contractor to ensure both parties are protected. This document is used to cover the services provided, the compensation, the work schedule, how long the construction lasts, as well as other important things to consider before the construction begins.

RESIDENTIAL CONSTRUCTION CONTRACT

This Agreement is dated for reference the [ENTER DATE]

[ Enter Name and Address of the person/persons receiving Services] (the "Owner"),

[ Enter Name and Business Address of Contractor] ( the "Contractor"),

A. The Recipient wishes to engage the Contractor to provide Building Services on their property at [ Enter Address of Property] with PID number [Enter PID number] (“the Property”).

B. The Contractor warrants that that he/she possesses the unique ability, knowledge, skills as may be necessary, to perform the Services provided for in this Agreement.

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

1.1 Services. The Contractor agrees to provide the necessary services including materials, labor, equipment, project management and supervision to complete the project as follows [Enter description of Project e.g. installation of a new kitchen or the complete renovation of the Property] (the “Services”)

1.2 Plans. The Contractor shall complete all the Services pursuant to the plans provided by the Owner attached hereto as Appendix A (the “Plans”).

1.3 Errors. Contractor shall not commence provision of the Services or continue with the provision of the Services where Contractor discovers any discrepancies, errors, or omissions in the Plans or where anything materially changes or effects the Plans. Contractor agrees to inform the Owner of any such findings and shall only commence or recommence any work after obtaining the written consent of the Owner.

1.4 Permits. The [ Enter either Owner or Contractor] shall be responsible for obtaining and keeping in good standing any required approvals for the Plans and any required construction or other permits. Notwithstanding the foregoing the Owner shall be responsible for all costs in relation to such approvals or permits.

1.5 Methods. The Contractor's methods of meeting the obligations pursuant to this Agreement shall be determined by the Contractor in its sole discretion and judgment, subject to the provisions and requirements of this Agreement, reasonable consultation with the Owner and subject to the understanding that the Contractor will provide the Services in the best interests of the Owner.

1.6 Change Orders. Either Party may request a change in the Services by:

1. providing to the other Party a notice that describes the change;
2. the Contractor providing to the Owner an estimate cost for making the change;
3. both parties executing a Change Order, a style of which is attached hereto as Appendix B confirming they have agreed to the change and:

1. Prior to commencement of the Services the Owner shall pay the Contractor an amount of $ [Enter Amount] (the “Down Payment”) which shall be credited proportionately against each future payment, the last such credit being made to the Final Payment.

1. On [ Enter date e.g. first day/last day/15th day] of each month the Contractor shall provide an itemised invoice for the Fee for the previous month, less the proportionate amount of the Down Payment. Owner shall pay the amount of such Invoice within [Enter number of days ] calendar days following receipt of such invoice, subject to clause 2.8.

1. Final Payment shall be due [Enter number of days] calendar days after Contractor:

1. the sequence of tasks and the duration of each task;
2. deadlines for Owner’s decisions on material selections; and
3. the proposed dates for delivery of materials.

1. neglect or default by the Owner, their agent, lender, any other contractor or any of their independent material suppliers;
2. governmental action or inaction; or
3. any other reason or reasons beyond Contractor’s reasonable control, including without limitation damage caused by fire or other casualty, strikes, force majeure events, shortage of materials or labor, transportation delays, weather conditions, change orders, or deficiencies in this Agreement.

1. notice concerning commercial general liability insurance
2. notice concerning workers’ compensation insurance
3. mechanics lien warning
4. information about the contractors state license board (CSLB)

1. failure to provide sufficient materials or labor
2. failure to make due payment to subcontractors;
3. failure to comply with all applicable laws or guidelines
4. failure to provide Owner, upon request with evidence of Actual Costs or evidence that the Completion Date is likely to be met

1. take possession of any and all property of the Contactor remaining on the Property;
2. accept assignment of subcontracts; and
3. complete the Services using reasonable methods.

1. immediately cease provision of the Services;
2. ensure that the Services previously provided in the relation to the Property can be preserved and made safe; and
3. terminate any Agreements made with suppliers or subcontractors.

1. take all reasonably necessary safety precautions,
2. make reports to the Owner of any injuries or hazards on the Property
3. comply with all applicable laws, ordinances, regulations, and orders issued by a public authority, whether federal, state, or local.
4. furnish all required safety equipment and ensure all of its employees and subcontractors’ employees have and wear personal protective equipment in compliance with applicable safety requirements.

Per:___________________________ Authorized Signatory

[ENTER CONTRACTOR NAME]

Per:___________________________ Authorized Signatory

Appendix A - Plans
[Attach a copy of the Plans here.]

Appendix B - CHANGE ORDER

Appendix C - ESTIMATED COSTS

Appendix D - LIST OF APPLICABLE ACTUAL COSTS

1. does not carry commercial general liability insurance.
2. carries commercial general liability insurance written by [Enter name of Insurance Company]. You may call the [Enter name of Insurance Company] at [Enter Phone Number] to check the contractor’s insurance coverage.
3. is self-insured

1. has no employees and is exempt from workers’ compensation requirements.
2. carries workers’ compensation insurance for all employees.

APPENDIX F - NOTICE OF RIGHT TO CANCEL
NOTICE OF RIGHT TO CANCEL
_________________________ (Enter date of transaction)
You may cancel this transaction, without any penalty or obligation, within three business days from the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within 10 days following receipt by the Contractor of your cancellation notice, and any security interest arising out of the transaction will be canceled.
If you cancel, you must make available to the Contractor at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the Contractor regarding the return shipment of the goods at the seller’s expense and risk. If you do make the goods available to the Contractor and the Contractor does not pick them up within 20 days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation.
If you fail to make the goods available to the Contractor, or if you agree to return the goods to the Contractor and fail to do so, then you remain liable for performance of all obligations under the contract.
To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice, or any other written notice, or send a telegram to the Contractor at the business address above not later than midnight of [ ENTER DATE]
I hereby cancel this transaction.

________________________________________ Owner Signature
________________________________________ Date

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