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Lump Sum Construction Contract

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If you’re in the midst of a construction project and need to get a contractor on board at a set fee, then you need this lump sum construction contract.

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  1. Templates
  2. Construction
  3. Lump Sum Construction Contract
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Lump Sum Construction Contract

Image 1

Created by:

[Contractor.FirstName][Contractor.LastName]

[Contractor.Company]

Prepared for:

[Owner.FirstName][Owner.LastName]

[Owner.Company]

​This Lump Sum Construction Contract is entered into between [Owner.FirstName][Owner.LastName] (“Owner”) and [Contractor.Company] (“Contractor”) (collectively, the “Parties”). The effective date of this Construction Contract will be the last date of signature below.

This Construction Contract, along with incorporated documents referenced herein, sets forth the terms and conditions agreed to between the Parties relating to the construction of (Enter the type of construction) by Contractor for Owner.

Terms and Conditions

Parties and Property

1.1. Owner is [Owner.FirstName][Owner.LastName] the legal owner of the property on which construction will be completed under this Construction Contract, with contact information as follows:

[Owner.StreetAddress]

[Owner.Phone]

[Owner.Email]

1.2. [Contractor.Company] is a duly licensed general contractor in good standing, License number (Enter license number), with contact information as follows:

[Contractor.StreetAddress]

[Contractor.Phone]

[Contractor.Email]

1.3. The site for the construction to be completed under this Construction Contract is as follows:

(Site street address)

(Site legal description)

(hereinafter “Property”).

1.4. Construction Project shall mean the work that Contractor (and/or Contractor’s agents) are obligated to perform for Owner as detailed within the following plans and specification documents, which are incorporated herein by reference:

  • Plan Documents

  • Project Specification and Scope of Work

Compensation

2.1. The Owner agrees to pay the Contractor for the Work the total amount of $(Enter the amount) (the “Contract Price”). Payment of this amount is subject to additions or deductions pursuant to Change Orders as provided for in Article 4 of this Agreement. Payment for the work will be by (Enter payment method), according to the following schedule:

  • (Percentage)% upon signing this Contract as a mobilization fee.

  • (Percentage)% at the completion of (Specify Milestone).

  • (Percentage)% at the completion of (Specify Milestone).

  • (Percentage)% upon final completion and acceptance of the project.

Contingencies, Commencement, and Completion

3.1. This Construction Contract

is /

​is not contingent on the Owner obtaining a construction loan as follows: financing conditions on or before the contingency deadline. The owner will notify the Contractor when the construction loan has been approved. If this Construction Contract is contingent on the Owner obtaining a construction loan and such loan is not obtained on or before the contingency deadline set forth herein, neither the Owner nor the Contractor shall have any further obligations under this Construction Contract.

3.2. Work on the Construction Project will commence no later than (Number of days) days after the Effective Date of this Construction Contract or after the Contractor receives notice from the Owner of approval of any construction loan, whichever is later (“Commencement Date”).

3.3. The Construction Project is scheduled to be completed within months of the Commencement Date unless modified by change order as defined herein.

Change Orders

4.1. From time to time during the performance of work under this Construction Contract, there may be changes required or requested to the scope of work, price, and time for completion under this Construction Contract. All such proposed changes will be submitted to the other Party in writing containing at least the following information: proposal date, the change requested, explanation of how that will affect the cost or time of completion, and signed by the proposing party.

When both parties have signed to acknowledge their approval of such a proposal, it will be designated as a “Change Order” and will then be incorporated into this Construction Contract and is binding on both parties.

Additional Provisions

5.1. The Contractor will obtain, at its own cost, all necessary permits and permissions to perform the work required for the Construction Project.

5.2. The Contractor will maintain, throughout the duration of this Construction Contract, all legally required licenses and permissions to perform the work required for the Construction Project. To the extent it is permitted by law, the Contractor may subcontract portions of work to properly qualified and licensed subcontractors upon advance notice to the Owner and ensure that prompt and proper payment is made to such subcontractors as will avoid any liens being placed on the Property.

5.3. The Owner will provide the Contractor and its employees, agents, and subcontractors reasonable access to the Property for purposes of conducting work on the Construction Project.

5.4. During the course of work on the Construction Project, the Owner or Owner’s designated agent will have access to the Property for purposes of inspection, appraisal, and work evaluation. Such access and inspections will be conducted at reasonable times, with advance notice to the Contractor when reasonably practicable, and in a manner not to obstruct the progress of construction.

5.5. The Parties will purchase and maintain the following insurance policy(ies) during the course of work on the Construction Project with duly licensed insurance companies in the amount of no less than $ (Enter minimum insurance amount) and with reasonable deductibles not to exceed min deductible amount:

  • (Enter insurance policy requirement)

5.6. The Contractor will be responsible for properly disposing of all construction materials and debris from the Property from the Commencement Date until the date a certificate of occupancy is issued to the Owner.

5.7. “Hazardous Materials” means any substance commonly referred to or defined in any Law as a hazardous material or hazardous substance (or other similar terms), including but not limited to chemicals, solvents, petroleum products, flammable materials, explosives, asbestos, urea formaldehyde, PCB’s, chlorofluorocarbons, freon or radioactive materials.

The Contractor will be responsible to comply with legal regulations regarding the removal and disposal of Hazardous Materials at its own cost unless otherwise specified in this Construction Contract. The Contractor will indemnify the Owner for any damages resulting from improper handling or disposal of Hazardous Materials at or from the Property from the Commencement Date until the date a certificate of occupancy is issued to the Owner.

5.8. Utility services to the Property during the time of construction will be arranged for, and paid by, the utility responsible party.

5.9. In the event of destruction of the Property, in whole or in part, from the Commencement Date until the date a certificate of occupancy is issued to the Owner, either party will have the right to terminate this Construction Contract.

5.10. Contractor will not be deemed in breach of this Construction Contract or have liability to Owner for failure to perform obligations under this Construction Contract if the failure is due in whole or in substantial part to strikes, acts of God, unavailability of specified labor or materials, war, acts of terror, or other causes beyond the reasonable control of Contractor.

Substantial Completion and Punch List

6.1. The Contractor will provide notice to the Owner when the Construction Project is substantially complete. The Owner will inspect the Construction Project within (Number of days) days after receiving such notice and deliver to the Contractor a “punch list” of deficiencies found on the Construction Project. The Contractor will promptly correct the matters identified on the punch list. The Owner may withhold from the final payment to the Contractor a reasonable estimate of the cost to correct the punch list items until such items are corrected.

Warranties

7.1. Contractor warrants and represents that it is duly licensed to perform the work under this Construction Agreement and will perform such work in a workmanlike manner, in compliance with all applicable laws, regulations, codes, restrictive covenants, and homeowners’ association requirements, with new materials meeting the standards set for in the Construction Contract, including plans and specifications incorporated therein.

7.2. Owner represents that (he/she/it) is the legal owner of the Property or otherwise has the full legal authority to enter into this Construction Contract without approvals from any other person or entity, that the requested work as outlined in the plans and specifications are in compliance with all applicable laws, regulations, codes, restrictive covenants, and homeowners’ association requirements, and that Owner has the financial ability to pay the compensation to the Contractor, and any reasonable adjustments thereto via change orders, when due and that Owner will make such payments.

7.3. Both Parties will execute and deliver to the other or to third parties any and all documents necessary to effectuate the provisions of this Construction Contract, including construction permits, certificate of occupancy, and any other documents.

General Terms

8.1. This Construction Contract may not be assigned by either Party without written consent of the other Party, and such consent is not to be unreasonably withheld.

8.2. Any notice required or permitted under the terms of this Construction Contract shall be provided to the contact information set forth in Article 1 above.

8.3. If any provision of this Construction Contract is found to be invalid, illegal, or unenforceable, the remaining portions shall remain in full force and effect.

8.4. This Construction Contract is governed and is to be interpreted under the laws of the State of [Contractor.State], and any legal proceedings relating to this Construction Contract will be maintained only in the County of [Contractor.Country] in the State of [Contractor.State].

8.5. This Construction Contract will be binding upon and inure to the benefit of the Parties and, if applicable, to their trustee, successor, executor or administrator, or heirs.

8.6. In the event of a conflict between the documents incorporated into this Construction Contract, the specifications will take precedence over the plans, and the plans will take precedence over this document.

8.7. This Construction Contract and the documents incorporated herein in Section 1.4, and any change orders created per the process outlined in Section 4.1, represent the entire agreement between the Parties and can only be modified in writing, signed and dated by both Parties.

Executed by the Parties on the date indicated below.

[Owner.Company]

Signature
MM / DD / YYYY

[Owner.FirstName][Owner.LastName]

[Contractor.Company]

Signature
MM / DD / YYYY

[Contractor.FirstName][Contractor.LastName]

Lump Sum Construction Contract

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