Construction Contract Template

This Construction Contract is made on [Contract Date] between [Company Name] ("Contractor") and [Client Name] ("Owner").

1. The Work

Contractor will perform the work described in its proposal dated [date of the proposal, for example: April 2, 2026], for the option Owner selected, and shown in any plans listed in that proposal (the "Work"), at [the property address, for example: 14 Elm Street] (the "Property"). The proposal is part of this contract. If it conflicts with this contract, this contract governs.

2. Contract Price and Payments

The contract price is $62,500, a fixed price for the Work. It changes only by a signed change order. Owner will pay it as follows:

• Deposit on signing: $6,250
• Draw 1, demolition complete: $12,500
• Draw 2, rough-in inspections passed: $15,625
• Draw 3, cabinets and countertops installed: $18,750
• Final, completion and walkthrough: $9,375

Contractor will invoice each draw when its milestone is reached. Each invoice is due within 7 days.

3. Allowances

The proposal lists allowances for items Owner will select. If a selection costs more than its allowance, Owner pays the difference plus 10%, by change order before the item is ordered. If it costs less, the difference is credited to Owner. Owner will make selections by the dates Contractor gives, so orders don't hold up the schedule.

4. Change Orders

No change to the Work, the price, or the schedule is binding unless it's in a written change order signed by both parties before the changed work begins. Each change order states the change, its effect on the price, and its effect on the schedule.

5. Permits and Inspections

Contractor will obtain the building permit, schedule the inspections the Work needs, and perform the Work to the building codes that apply. The permit fee is included in the contract price.

6. Concealed Conditions

Contractor's price is based on the conditions it could see before signing. If Contractor finds conditions it couldn't reasonably have known about, such as rot, damaged framing, outdated wiring, or hazardous materials, it will stop work in the affected area and tell Owner promptly. The parties will agree on any added work and cost in a change order before that work continues.

7. Schedule and Delays

Contractor will start within [three] weeks of permit approval and expects to finish in about [six] weeks of work on site. The finish date moves by the time lost to change orders, late selections or decisions by Owner, permit or inspection delays, material shortages, severe weather, or other causes outside Contractor's control. Contractor will tell Owner of any delay promptly.

8. Owner's Responsibilities

• Give Contractor access to the Property during working hours, and use of electricity and water at no charge
• Make selections and decisions on time, and name one person to make them
• Supply any items Owner has agreed to provide, such as appliances, on schedule and in good condition
• Remove personal belongings from the work area before work begins

9. Site Safety and Cleanup

Contractor is responsible for safety on the work site and for how the Work is done. Contractor will keep the work area reasonably clean each day, protect the rest of the home from dust and damage, and remove all debris at completion.

10. Insurance

Contractor will carry general liability insurance and workers' compensation insurance as the law requires while the Work is underway, and will provide certificates on request. Owner will keep its homeowner's insurance in force during the Work.

11. Subcontractors

Contractor may use licensed subcontractors for parts of the Work, and remains responsible for their work. Contractor will pay its subcontractors and suppliers for the Work they perform.

12. Warranty

Contractor warrants that the Work will be free of defects in workmanship for one year from completion, and will repair any such defect at no charge. Manufacturers' warranties on materials and fixtures pass through to Owner. This warranty doesn't cover damage from misuse, lack of maintenance, normal wear, or changes made by others.

13. Nonpayment

If a payment is more than 10 days late, Contractor may stop work after giving Owner 3 days' written notice, until the payment is made. The schedule moves by the time work is stopped.

14. Termination

• Either party may end this contract if the other materially breaches it and doesn't fix the breach within 10 days of written notice.
• If the contract ends, Owner will pay for the Work done to that date, and for materials ordered that can't be returned, less amounts already paid.

15. Disputes

The parties will first try to resolve any dispute by direct discussion. If that fails, they'll try mediation before starting any other proceeding, and share the mediator's fees equally.

16. Notices Required by Law

[Add here any notices your state requires in a home improvement contract, for example: a notice of the right to cancel, a mechanics lien notice, or the contractor's license number. Check your state's rules for what's required, and where and how each notice must appear.]

17. General

This contract is governed by the laws of [state, for example: Oregon]. It, the proposal, and the signed change orders are the entire agreement between the parties, and may only be changed in writing signed by both. If any part is found unenforceable, the rest remains in effect.

By signing below, both parties agree to these terms.