13 Jul Example of Contract between Builder and Client
When it comes to contracting between a builder and a client, having a clear, comprehensive, and detailed contract is essential. A good construction contract should outline the full scope of the project, including timelines, costs, and responsibilities of both parties.
Here`s an example of a contract between a builder and a client:
1. Scope of Work
The contractor will perform the following services:
– Building a single-family residence of approximately 3000 square feet, following the architectural plans and specifications provided by the client.
– Constructing a detached two-car garage of approximately 600 square feet.
– Obtaining all necessary permits and approvals from local authorities.
– Supervising all work performed by subcontractors and other personnel.
– Conducting all necessary inspections throughout the project.
– Cleaning up and disposing of all debris and waste materials upon completion of the project.
2. Payment Terms
The client agrees to pay the contractor a total of $500,000 for all services rendered, broken down as follows:
– An initial deposit of $50,000 at the signing of the contract.
– Five subsequent payments of $90,000 each, due upon the completion of specific project milestones.
– A final payment of $50,000 upon the completion of the project in its entirety.
The contractor estimates that the project will take approximately nine months to complete, starting on March 1, 2021, and ending on November 30, 2021. However, the timelines may be adjusted based on factors outside of the contractor`s control, such as weather delays or unforeseen circumstances.
4. Change Orders
Any changes to the project scope or materials used must be agreed to in writing by both parties. The contractor will provide a written estimate of the additional costs and time required for any change orders.
The contractor warrants that all work performed will be of good quality and in accordance with applicable building codes and industry standards. The contractor will correct any defects in workmanship or materials that arise within one year of completion of the project.
Either party may terminate the contract at any time for any reason upon giving written notice. In the event of termination, the client will pay the contractor for all work performed up to the date of termination, as well as any costs or expenses incurred by the contractor as a result of the termination.
In conclusion, a well-drafted construction contract protects both the builder and the client by clearly outlining the expectations and responsibilities of each party. It helps ensure that the project is completed on time, within budget, and to the satisfaction of all involved.