construction building contract template

Construction Building Contract

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A construction contract is a contract between two parties for the construction purpose of an area. This contract is done on certain policies and conditions between the owner and the contractor. Once the owner decides to do some construction on his site, he then visits multiple construction companies. After the acceptance, an official construction contract is to be made and signed by both parties. This context contains the details of construction contract types and related information. So, keep reading to get the best out of this context. 

What should be included in a Construction Contract with general contractor?

This Construction Contract includes the following articles:

  1. Work.
  2. Contract Time.
  3. Contract Price.
  4. Change Orders.
  5. Payment Procedures
  6. Interest.
  7. Contractor’s Representation.
  8. Contract Documents.
  9. Contractor’s Responsibilities.
  10. Personnel. 
  11. Furnished Items. 
  12. Materials.
  13. Subcontractors.
  14. Permits.
  15. Inspections. 
  16. Taxes. 
  17. Use of Premises. 
  18. Record Documents. 
  19. Safety. 
  20. Continuing the Work. 
  21. Damage to the Work. 
  22. Warranty.
  23. Indemnity and Hold Harmless. 
  24. Related Work at Property.  
  25. Insurance.
  26. Termination.
  27. Miscellaneous.
  28. Signatures.

What are the types of construction contracts?

Construction contracts can be of multiple types depending upon the contract duration and the required work. These types are included as fixed-price contracts, unit fixed-price contracts, etc. A brief detail is narrated here about the types of construction contracts:

  • Fixed price contract types; A fixed-price contract type is the one contract that has a fixed price for all construction-related work. A fixed price incentive is paid at a time. But there can be some other incentives which may be included. These incentives can be like if one party terminates a contract then that party will have to pay some amount to the other party.
  • Cost-Plus contract; A cost-plus contract involves the real-time applicable money required by the construction company to purchase the products and perform services. This amount is then paid by the owner. Cost-plus contracts involve multiple sub-types for example cost-plus with a fixed service fee, cost-plus with bonus price, etc.
  • Time contract; Such type of contracts involves an hourly rate on daily basis. The owner pays this agreed amount of weight to the constructors. Such contract types are appreciated when the scope of the project or contract is not visible in the future. 
  • Unit price contracts; These contracts are contracts in which the owner will fix a price for a specific work request. These contracts are usually considered flexible, all the required costs will be paid by the owner and the service fee is the one that the owner will offer as a maximum. The constructors will have to agree and bid on that fixed price budget. 

These are some types of construction contracts that are common nowadays and being applicable in most jurisdictions. 

Sample Construction contract template:

We are attaching a sample construction contract here for your ease and help.

This Construction “Contract” is made and effectively by:  {{dated}}.  Case Number: {{Case number}}

BY and BETWEEN: {{PARTY A}} (the "Owner"), an entity organized with Business Registration Number: {{Business Registration Number}} and existing under the laws of the {{Country}} / Passport: {{Passport Name}}, Passport Number}}, date of birth: {{date of birth }}, place of birth: {{place of birth}}

AND: {{PARTY B}} (the “Contractor"), an entity organized with Business Registration Number: {{Business Registration Number}} and existing under the laws of the {{Country}} / Passport: {{Passport Name}}, Passport Number}}, date of birth: {{date of birth }}, place of birth: {{place of birth}}

in consideration of the mutual covenants hereinafter set forth, agree as follows:

1. Work.

The contractor shall construct the items identified in Exhibit “A” (“Work”) in accordance with the Contract Documents, as identified in Article 8 of this Contract on property which is located at (“Property”).

2. Contract Time.

The Work will be completed on or before (“Completion Date”), subject to modifications in approved Change Orders. The Completion Date shall be the date when the Work is sufficiently complete in accordance with the Contract Documents so that Owner can occupy or utilize the Property for its intended use (“Substantial Completion”). If the Owner will pay the Contractor for all or part of the Work with funds advanced by a lender, Substantial Completion shall be the date as defined by the loan documents. Before starting the Work, Contractor shall submit to Owner for review an estimated progress schedule indicating the starting and completion dates of various stages of the Work.

3. Contract Price.

Owner shall pay to Contractor an amount equal to $ (“Contract Price”) for completion of the Work.

Download this General contractor Construction Contract template now for your reference.

You can edit this construction contract directly after downloading it from our website. If you like our content, then share it with your friends as well. We are always up for new ideas and suggestions, so please type them out in the comments below. A sample construction contract is attached herewith. 

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Pauline Mann(6/17/2022) - DEU

The site helps me a lot these days.

Tamala English(6/17/2022) - USA

Very good!!

Suzanna Cordova(3/26/2021) - USA

I’m so grateful for the documents you post

DD D(3/26/2021)


Jefferson D(3/26/2021)

This is a semi-pro construction contract, it's useful for my situation.

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