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Construction Proposal and Agreement Template

Prepared by:[Sender.FirstName][Sender.LastName]​ ​[Sender.Company]

Prepared for:[Client.FirstName][Client.LastName]​ ​[Client.Company]

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Cover Letter

Dear [Client.FirstName][Client.LastName],

As we all know, land is a finite resource and a prime investment to own. Land, being transformed into great cities, nice homes, grand industrial parks, is one great feat to accomplish. Developing acres of this prime property entails a lot of planning and building.

Our company, [Sender.Company], has been able to establish numerous residential homes and office buildings in the different parts of the state. Through the use of the newest technology coupled with several years of experience in the construction business, we are assuring you of excellent workmanship from start to completion of the project.

As the job includes a lot of detailing and price comparisons, we offer you a package price that can match the industry’s standards. Tailored to your needs, rest assured that the quality and service that we render will be suited to your needs and will meet your expectations.

Feel free to contact us anytime should our service merit your interest.





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Company Profile

About Us

At [Sender.Company], we are not merely transforming land into blocks and bricks. We believe in the beauty of creation and the power of design. And more importantly, we believe in the realization of your dreams.

Our company has been an established construction firm, creating homes and offices in different locations. The expertise and experience we offer is based on the industry’s standards, all for a reasonably packaged price. As your trusted partner, we are assuring you of an excellent workmanship from start phase of the construction until the turnover of the project.

We are a team of competent engineers who will be your partner in the development of your property. May it be building of new home or a reconstruction of an office building, we are dependable professionals who will render outstanding services from pre-construction to cost scheduling, our team will be ready to serve you.

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Contact Information

Company Details

Company Name: [Sender.Company]

Head Office Address: [Sender.StreetAddress][Sender.City][Sender.State][Sender.PostalCode]

Email Address:  [Sender.Email]

Website: (Sender.Website)

Telephone Numbers:  [Sender.Phone]

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Contact Information:


Contact Information:


Contact Information:

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Cost Estimate

This cost estimate covers the direct labor, materials, sub contracts and equipment for your requirement. Reasonably-priced packages for your project are indicated below:

Detailed Estimation





Item 1

Description of first item




Item 2

Description of second item




Item 3

Description of third item




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Agreement Terms

This Construction Agreement is made and entered into as of date by and between

[Client.Company], hereinafter referred to as the “CLIENT” and [Sender.Company], hereinafter referred to as the “CONTRACTOR”;


WHEREAS, the CLIENT requires the services for a duly licensed and qualified construction firm to develop his/her property;

WHEREAS, the CONTRACTOR represents that it has the required professional skills/certifications and financial capacity to provide services to the Client;

NOW THEREFORE, the parties bind and agree to the following terms below:

I. Project

The CLIENT will award a Construction project to the CONTRACTOR entitled project title;

1. The location of the CLIENT’s property will be properly endorsed to the CONTRACTOR, including the necessary technical details of the lot parcel/building;

2. The duration of the project will start from date and the estimated completion date by date.

II. Payment terms

1. The CLIENT agrees to pay the CONTRACTOR an initial 20% of the estimated contract cost, upon the finalization of the estimated project cost.​

2. The CLIENT will pay an additional 25% of the estimated project cost upon the commencement of the development.

3. Full payment of the project will be due and demandable ten (10) days after the completion and CLIENT’s receipt of Certificate of Completion.

4. Payments should be made to the CONTRACTOR in Post Dated Checks and will be given an Official Receipt or Acknowledgement Receipt for every check received and validated.​

5. Should the Client be in default during the on-going construction, the CONTRACTOR has the right to give notice and may stop performance until the CLIENT corrects the default within thirty (30) business days.

III. Construction bond and permits

1. The applicable construction bond applied during the development/construction of the project will be shouldered by the CONTRACTOR provided that the cost of the bond will be included as part of the total estimated cost.

2. All concerned permits for the construction phase will be form part of the estimated project cost and shall be duly completed by the CONTRACTOR before the start date stated in the contract.

IV. Construction materials

1. All materials listed in the materials specification list will be reviewed and agreed by the CLIENT before the actual construction commence.

2. Changes in materials will be reflected in the estimated project cost and will be reviewed by the CONTRACTOR.

3. Modifications in the list of materials will be subject to approval of the CONTRACTOR.

V. Work schedule

1. The CONTRACTOR will provide a schedule of the performance of work to the CLIENT prior to the commencement of construction. ​

2. Extension of work schedule is permitted only in circumstances that are beyond the CONTRACTOR’s control and will be agreed upon by both the CLIENT and CONTRACTOR.

VI. Compliance

1. Should the CONTRACTOR fail to meet the requirements set by the CLIENT, the CLIENT may notify the CONTRACTOR in writing that the CONTRACTOR is in default and will be given up to five (5) business days to act. If the CONTRACTOR fails to comply or respond within the given period, the CLIENT may correct the default and deduct the cost thereof from any payment due to the CONTRACTOR or terminate the Agreement.​

2. If the CLIENT decides to terminate the Agreement, the CONTRACTOR shall be entitled to payment for services rendered until termination of contract.

VII. Warranties

1. The CONTRACTOR warrants the Work against defects in workmanship and materials for a period of 12 months after full completion and turnover of the building.

2. The warranty does not take effect if the CLIENT is in default of this Agreement or the effects of normal damages brought by wear and tear, caused by the faulty maintenance of the CLIENT.

3. Should the CLIENT provide the CONTRACTOR with a notice of a warranty claim under the 12 month period stated in this Agreement, the CONTRACTOR should respond within thirty (30) business days to the said warranty.

In Witness Whereof, the parties have executed this Agreement on the date and place above specified.

Signed by:







Construction Proposal and Agreement Template

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