SAMPLE CONTRACT FOR YOUR REMODELING PROJECT

State of ____________

CONSTRUCTION CONTRACT AGREEMENT

This Construction Contract Agreement (this “Agreement”) is made as of the ____ day of ______________by and between __________, an individual located at __________ (“Owner”) and __________, an individual located at __________ ("Contractor"). Owner and Contractor may each be referred to in this Agreement individually as a “Party” and collectively as the “Parties.”

WHEREAS, Contractor is a duly licensed general contractor in good standing, with contractor’s license number ___________; and

WHEREAS, Owner owns the property located at _____________________ (the “Property”) and desires to have certain work performed by Contractor at the Property.

NOW THEREFORE, in consideration of the mutual promises and for other good and valuable consideration exchanged by the Parties as set forth in this Agreement, the Parties, intending to be legally bound, hereby mutually agrees as follows:

1. Description of Work. Contractor shall perform the work described in Exhibit A (the “Work”), in accordance with Owner’s contract plans and specifications, attached as Exhibit B, this Agreement and any Change Order, as defined herein, (collectively, the "Contract Documents") at the Property.

2. Contract Price and Payments. Owner agrees to pay Contractor for the Work the total amount of $__________ (the “Contract Price”). Payment of this amount is subject to additions or deductions in accordance with any mutually agreed to changes and/or modifications in the Work, and the other documents to which this Agreement is subject. Payment for the Work will be by wire transfer, according to the payment schedule in Exhibit C. The payment from Owner to Contractor is due 3 days after inspection of completed work.

3. Final Payments

a. Certificate of Completion. Upon completion of the Work, Contractor shall notify Owner that the Work is ready for final inspection and acceptance. The property will not be accepted by the owner until all items on any necessary “post-inspection” punch list are completed and if necessary of Certificate of Occupancy from the city. When Owner finds the Work acceptable and this Agreement fully performed, Contractor shall issue Owner a “Certificate of Completion” stating that the Work has been completed in accordance with the Contract Documents and the entire balance of the Contract Price (minus 10% retention) is due and payable. Owner shall make the final payment within _3___ days after receiving a Certificate of Completion.

b. Retention Money Owner shall release all Rentention Money within 30 days after Owner accepts Certificate of Completion. Exhibit D is the Certificate of Completion Check List. By releasing the Rentention Money, Owner waives all claims except those rising out of: (a) any faulty Work appearing after completion; (b) any Work that does not comply with the Contract Documents; and (c) outstanding claims or liens. Contractor, by accepting final payment, waives all claims except those previously made in writing, and which remain unsettled at the time of acceptance.

4. Materials and Labor.

a. 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 good quality and new, unless the Contract Documents require or permit otherwise. Contractor may substitute materials only with the prior written approval of Owner.

b. Owner will provide all finishing fixtures for the remodel as described in Exhibit D. All fixtures will be on-site when necessary as long as Owner is given 48 hours notice by Contractor.

5. Starting and Completion Dates. The Work under this Agreement shall begin on ________, and shall be completed by __________.

a. Penalty For every day over the agreed upon completion date the Contractor will be fined a price per day as outlined in Article 23 Liquidated Damages.

b. Owner Delay: Failure from the Contractor to meet the timeline will result in a penalty for the Contractor unless the delay is due to the Owner. Owner delays include: indecision by Owner (over 24 hours after the issue has been presented to Owner), Fixture due dates not met by Owner, lack of payment by the Owner.

6. Instructions. Owner shall give all instructions to Contractor, and shall furnish all necessary surveys for the Work. Unless otherwise provided in the Contract Documents, Owner shall secure and pay for all necessary easements, assessments or other approvals necessary for permanent structures or permanent changes in existing structures or facilities which are necessary to complete the Work.

7. Licenses and Permits. Contractor shall obtain all licenses and permits necessary for proper completion of the Work. Contractor is responsible for the cost of any necessary permits or licenses.

8. Laws and Regulations. Contractor shall perform the Work in a workmanlike manner. Contractor shall comply with all applicable federal, state, and local laws, regulations and ordinances, and any safety requirements of Owner (the “Applicable Laws”) in the performance of the Work. Contractor shall promptly notify Owner upon discovery of any variance between the Applicable Laws and the Construction Documents.

9. Supervision of Construction. Contractor shall be solely responsible for and shall supervise and direct all construction under this Agreement. Contractor shall provide competent and suitable personnel to perform the Work and shall at all times maintain good discipline and order at the Property. Contractor will at all times take all reasonable precautions for the safety of its employees and the public at the Property. Contractor agrees to assume full responsibility for the acts, negligence, and/or omissions of its employees and any subcontractors and their employees.

10. Record Documents. 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 Owner upon completion of the Work.

11. Utilities. Owner shall pay for all permanent electric, water, sewer and gas service as needed to perform the Work. Contractor shall pay for the installation, connection and removal of all temporary utilities on the Property during the performance of the Work. All temporary utilities shall conform and adhere to the Applicable Laws.

12. Hazardous Materials. Except as otherwise provided in the Contract Documents, Contractor shall be responsible for all Hazardous Materials brought to the Property by 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 Contractor discovers any Hazardous Materials on the Property, Contractor shall immediately notify Owner and may cease working until the material or substance has been rendered harmless. Owner shall defend, indemnify and hold harmless 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 the 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 such indemnity.

13. Warranty. Contractor warrants that the Work shall be in accordance with the Contract Documents and free from material structural defects. Contractor shall redo or repair any Work not in accordance with the Contract Documents or any defects caused by faulty materials, equipment or workmanship for a period of ____ (__) year(s) from the date of completion of the Work.

14. Condition of the Property. Contractor agrees to keep the Property and adjoining driveways free and clear of waste material and rubbish. 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. 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, 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 Owner.

15. Inspection. Owner shall have a right to inspect the Work at any time and request that Contractor promptly correct 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.

16. Right to Stop Work. If Contractor fails to correct any defective Work or repeatedly fails to perform the Work in accordance with the Contract Documents, Owner shall have the right to order Contractor to stop performing the Work, or any portion thereof, until the cause for such order is eliminated.

17. Subcontracts. Contractor shall furnish to Owner a list of names of subcontractors proposed to perform principal portions of the Work. Contractor shall not employ any subcontractor to whom Owner reasonably objects. A subcontractor, for the purposes of this Agreement, shall be a person with whom Contractor has a direct contract for work at the Property. All contracts between Contractor and subcontractor shall be in accordance with the terms of this Agreement and the Contract Documents.

18. Work Changes. 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 Owner and Contractor, which shall be incorporated by reference herein.

19. Other Contractors. Owner reserves the right to enter into other contracts in connection with the Work. 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.

20. Indemnification. Contractor agrees to defend, indemnify and hold harmless 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 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 Owner.

21. Contractor’s Insurance. Contractor agrees to maintain at its own expense during the entire period of construction at the Property:

A. General Liability Insurance. Such general liability insurance as will protect Contractor from claims for property damage and bodily injury, with limits of liability not less than $_________ [minimum amount of general liability insurance] for each occurrence.

B. Workers’ Compensation Insurance. Such workers’ compensation and employee insurance as required by law.

C. Automobile Liability Insurance. Such automobile liability insurance with limits of liability not less than $ _______________

Contractor shall name Owner as an additional insured. Proof of such insurance shall be filed by Contractor with Owner within a reasonable time after execution of this Agreement.

22. Time of Essence. All times stated in this Agreement or in the Contract Documents are of the essence. Contractor agrees that such times are reasonable for performing and completing the Work.

23. Liquidated Damages. In the event the Work is not completed by the date set forth in Section 5 of this Agreement, plus any extensions thereof as allowed in this Agreement, Owner shall suffer damages uncertain in amount and difficult to measure and prove accurately. Owner and Contractor agree that in lieu of actual damages, and as a penalty, for delay in the performance of the Work, Contractor shall pay Owner the sum of $_______ for each calendar day completion of the Work is delayed. Contractor agrees that the liquidated damages specified herein are reasonable in amount and are not disproportionate to actual anticipated damages. Owner shall have the right to deduct any liquidated damages from any amount due or that may become due to Contractor. Liquidated damages shall be the sole and exclusive remedy for Owner for delay in completion of the work past the agreed upon date.

24. Extension of Time. The times stated in this Agreement may be extended for such reasonable time as Contractor may determine when performance of the Work by Contractor is delayed by a Change Order. Or by mutual consent of Contractor and Owner and modified on the contract.

25. Early Termination for Breach of Contract.

A. Contractor's Termination. Contractor may, on __3__ days’ written notice to Owner, terminate this Agreement before the completion of the Work when for a period of _7__ bank days after a Draw (completion payment0 is due, through no fault of Contractor, Owner fails to make the payment. On such termination Contractor may recover from Owner payment for all Work completed and for any loss sustained by Contractor for materials, equipment, tools or machinery to the extent of actual loss thereon, plus loss of a reasonable profit.

B. Owner's Termination. Owner may, on __3_ days’ notice to Contractor, terminate this Agreement before the completion of the Work, and without prejudice to any other remedy Owner may have when 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.

26. Disputes. Any dispute arising from this Agreement shall be resolved in the courts of the State of _________.

27. Counterparts. 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.

28. Headings. 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.

29. Notices. 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.

30. Assignment. 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.

31. Binding Effect. 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.

32. Governing Law. 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 _____, without regard to its conflicts of laws provisions.

33. Severability. 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.

34. Entire Agreement. 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.

35. Amendments. This Agreement may not be amended or modified except by a written agreement signed by the all of the Parties.

36. Waiver. 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. 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.

37. Other.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first written above.

Owner Full Name Owner Representative Signature Owner Representative Name and Title

Owner Signature Owner Full Name

Contractor Full Name Contractor Representative Signature Contractor Representative Name and Title

Contractor Signature Contractor Full Name

Exhibit A

Details of the Project

Exhibit B

Plans, Drawings, Permit

Exhibit C

Payment Schedule

(a) $_____________ deposit, due upon the execution of this Agreement

(b) $_____________ due upon completion of Phase 1 by _______ Minus 10% retention fee

(c) $_____________ due upon completion of Phase 2 by _______ Minus 10% retention fee

(d) $_____________ due upon completion of Phase 3 by _______ Minus 10% retention fee

(e) $_____________ due upon completion of Phase 4 by _______ Minus 10% retention fee

(f) $_____________ due upon completion of Phase 5 by _______ Minus 10% retention fee

(g) $_____________ due upon completion of Phase 6 by _______ Minus 10% retention fee

(h) $_____________ due upon completion of Phase 7 by _______ Minus 10% retention fee

(i) $_____________ Retainage released 30 days after Owner approved Certificate of Completion.

Draw Schedule:

Work Completed Amount

1st Payment

Deposit

(5%)

Draw 1 Foundation

Plans and specifications, permits, excavation, demo, clean-up

(15%)

Draw 2 Rough Framing

Framing, Subflooring, interior partitions.

(15%)

Draw 3 Dry In

Roofing, siding, windows, exterior doors. Exterior paint,

(15%)

Draw 4 Rough In

Rough HVAC, electrical, plumbing. Set tubs and shower. Insulation.

(12%)

Draw 5 Trim Out

Drywall, interior doors, cabinets, countertops, interior trim, finish flooring, paint, carpentry

(20%)

Draw 6

Certificate of Occupancy

COO is received and first punch list complete.

(18%)

Draw 7 Retainage Released

1 month after final punch list Completion

(5%)

Exhibit D

Fixtures List

Exhibit E

Residential Construction Walk-Through Checklist

Electrical

· All receptacles and switches work, proper polarity checked

· GFCI receptacles tested and working

· Switches, receptacles, and covers are the proper color

· All device plates installed straight and tight to the walls

· Light bulbs installed in all fixtures and all in working condition

· Telephone jacks working

· Cable TV jacks working

· Network jacks working

· Door bells, intercoms, alarms, lighting controllers, and other house electronics working properly

· Circuit breakers labelled accurately in Service Panel

Plumbing

· Correct fixtures and colors

· Toilets all working

· Faucets all working

· Showers and bathtubs all working

· Whirlpool tub working

· Tub and sink drains can hold water

· No scratches, chips or nicks on any plumbing fixtures

· Refrigerator ice and water filter working with no leakage.

· Garbage disposal working properly

· Outdoor spigots working

HVAC

· Air conditioning working properly and properly zoned

· Heating system working properly and properly zoned

· Water heater working properly with non-scalding thermostat setting

· Whole-house ventilation system working properly

· All thermostats and system controls working properly

· Fireplace works properly, draft and damper working

Interior

· No squeaking, unevenness, on floors or walls

· No water leaks staining walls or ceilings

· Painting satisfactory in all rooms and closets; no touch-up required

· Wall finish: no dents, scratches, nicks, nail pops, or visible finish defects

· Ceilings: no dents, scratches, nicks, nail pops, or visible finish defects

· All interior wood trim and moldings in place and properly installed with no open miters or cracks

· Windows all working and sealed properly

· Doors all working and sealed properly. All keys acquired

· All glass in windows and doors good with no cracks or chips

· Wood floors properly installed and finished with no stains, marks, or large gaps

· Carpets properly installed with no stains or lumps, and all seams match

· All tile and stone work is flat, with solid grout joints, no cracks in tile or grout, and flexible sealant at all corners and joints with other materials.

· Wall coverings installed properly with no damage

· Appliances are the correct color and models, and all working properly

· All appliances are working properly

· All cabinets and countertops checked for scratches, nicks, cuts, cracks or burns

· All cabinet doors open and close properly

· All drawers operate freely

· All cabinet hardware installed properly

Exterior

· All windows and doors tightly sealed

· Exterior siding, brick, stucco, or other finish shows no cracks or damage

· Exterior trim installed properly with tight joints.

· Exterior painting and staining satisfactory; no touch-up required

· Min. 8 inches from ground to wood siding or trim

· Ground graded properly away from the structure

· Shrubbery at least 2 to 3 feet from the foundation

· Gutters and leaders all installed and not damaged; direct water away from foundation

· Garage doors and openers work properly

· Roofing installed flat with no missing shingles and the proper color

· Landscaping meets contract requirements

Miscellaneous

· Basement free of dampness, leakage, and cracks (other than tight shrinkage cracks)

· Jobsite is clear of all debris and nails

· All items in the house are the right color, model and size as specified in contract

· All appliances and equipment have directions and warranties

· All proper paperwork received and Certificate of Occupation

· Special instructions for care of floors, finishes, counters etc., have been reviewed