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General Contractorservices

Construction Contract

Comprehensive agreement for residential and commercial construction projects.

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What's included

Scope of Work and Materials Specification

Defines the construction services, plans, specifications, materials, allowances, exclusions, site conditions, and standards of workmanship.

Contract Price and Milestone Payment Schedule

Sets the contract amount, deposit requirements, progress payment milestones, retainage, invoicing procedures, late payment consequences, and final payment conditions.

Change Orders

Requires written approval for changes to scope, materials, price, or schedule and establishes how change orders must be documented before work proceeds.

Permits, Insurance, Safety, and Site Risk

Allocates responsibility for permits, code compliance, insurance coverage, jobsite safety, hazardous conditions, damage, and risk of loss during the project.

Confidentiality and Project Information

Protects confidential pricing, plans, business information, personal information, and project documents disclosed during the construction relationship.

Suspension and Termination

Allows suspension or termination for nonpayment, material breach, unsafe conditions, permit issues, insolvency, or convenience, with procedures for final accounting.

Dispute Resolution and Claims

Establishes notice requirements, good-faith negotiation, mediation or court procedures, governing law, venue, and preservation of payment or lien rights where applicable.

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Frequently asked questions

What should be included in a construction contract?
A construction contract should identify the parties, project address, scope of work, materials and specifications, contract price, payment schedule, start and completion dates, change order process, insurance, permits, warranties, termination rights, and dispute resolution terms.
Why is a written change order process important?
A written change order process helps prevent disputes by requiring both parties to approve any change to the work, materials, price, or schedule before the contractor performs the additional or revised work.
Can payments be tied to construction milestones?
Yes. Milestone-based payments are commonly used in construction contracts and can be tied to events such as deposit, completion of framing, inspections, installation phases, substantial completion, and final punch list completion.
Does this template work for residential and commercial projects?
Yes. The template is designed for both residential and commercial construction projects, but it should be customized for local licensing, lien, consumer protection, permit, and building code requirements.

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Templates/Construction Contract