The Construction Agreement Between Owner And Contractor serves as the primary legal framework for construction projects in the United States. This document is essential when any property owner engages a contractor for construction work, whether for new builds, renovations, or improvements. It protects both parties by clearly defining scope, cost, timeline, quality standards, and risk allocation. The agreement must comply with federal construction regulations, state-specific contractor licensing requirements, local building codes, and various safety and labor laws. It typically includes detailed specifications, payment schedules, insurance requirements, and dispute resolution procedures.
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1. Parties: Identifies and defines the Owner and Contractor with full legal names and addresses
2. Background/Recitals: States the context and purpose of the agreement, including project overview
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Work: Detailed description of the construction work to be performed
5. Contract Sum: Total amount to be paid and payment terms
6. Time for Completion: Project schedule, completion date, and milestone deadlines
7. Contractor's Obligations: Responsibilities including permits, materials, labor, and compliance
8. Owner's Obligations: Responsibilities including site access, approvals, and payments
9. Changes in Work: Process for change orders and modifications
10. Insurance and Bonds: Required insurance coverage and bonding requirements
1. Liquidated Damages: Specifies damages for delay or non-performance (used for larger projects or where timing is critical)
2. Dispute Resolution: Specific procedures for resolving disputes (used when parties want to specify alternative dispute resolution methods)
3. Warranties: Extended warranty provisions beyond standard guarantees (used for complex projects or specific quality requirements)
4. Substantial Completion: Defines conditions for substantial completion (used for phased projects or when partial occupancy is anticipated)
1. Schedule A - Drawings and Specifications: Detailed construction drawings and technical specifications
2. Schedule B - Project Schedule: Detailed timeline of construction milestones and deadlines
3. Schedule C - Payment Schedule: Breakdown of payment amounts and timing
4. Schedule D - Insurance Requirements: Detailed insurance specifications and coverage limits
5. Schedule E - Site Safety Plan: Safety procedures and requirements
6. Schedule F - Quality Control Plan: Quality assurance and control procedures
7. Schedule G - Subcontractor List: Approved subcontractors and their scope of work
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