Construction Contract - Pennsylvania
Pennsylvania Construction Contract — Private Commercial Project
This Construction Contract is made on [MONTH DAY, YEAR] between [OWNER'S FULL LEGAL NAME AND ADDRESS] (the Owner) and [CONTRACTOR'S FULL LEGAL NAME AND ADDRESS] (the Contractor).
Project address: [STREET, MUNICIPALITY, COUNTY, PA ZIP]
Project name: [NAME]
Owner's representative: [NAME, TITLE, EMAIL, PHONE]
Contractor's representative: [NAME, TITLE, EMAIL, PHONE]
The parties agree as follows.
1. Work and contract documents
Contractor shall furnish the labor, supervision, equipment, and materials described in Exhibit A — Scope and Specifications to complete the work at the project address (the Work). The drawings, specifications, signed change orders, and schedule identified in Exhibit A are part of this Contract. If documents conflict, the order of priority is: [LIST PRIORITY]. An item outside the agreed scope requires a signed change order under Section 5.
Owner shall provide site access, information and decisions reasonably needed for the Work. Contractor shall perform the Work in a workmanlike manner, obtain the permits assigned to Contractor in Exhibit A, and comply with applicable codes and safety requirements. Contractor shall supervise its personnel and subcontractors.
2. Price and payment
Contract price: $[AMOUNT], on a [LUMP SUM / UNIT PRICE / COST PLUS WITH CAP] basis described in Exhibit B — Price and Payment Schedule.
Contractor shall submit an itemized invoice every [BILLING PERIOD] for work completed and materials properly chargeable under Exhibit B. Owner shall pay undisputed invoiced amounts within [NUMBER] days after [INVOICE DELIVERY / BILLING PERIOD END]. If the parties leave the payment due date blank, the default timing in 73 P.S. § 505(c) applies to a project covered by the Contractor and Subcontractor Payment Act. Payment will be made by [METHOD] to [ACCOUNT OR ADDRESS].
If Owner in good faith disputes an invoiced deficiency item, Owner may withhold a reasonable amount for that item, shall give Contractor a written explanation within 14 calendar days after receiving the invoice as required by 73 P.S. § 506(b) where that Act applies, and shall pay the satisfactorily completed items when due. The parties will resolve the item under Section 10. A payment made or accepted does not waive a claim expressly reserved in writing.
Retainage, if agreed: [PERCENT OR DOLLAR AMOUNT / NONE]. If retainage is due to be released upon final completion, Owner shall pay it within 30 days after final acceptance of the Work, subject to any lawful, specifically documented deficiency withholding under 73 P.S. § 509. Final acceptance will be recorded in writing on [FORM OR METHOD].
Contractor shall pay its subcontractors and suppliers when due under their contracts and applicable law. On request, Contractor shall provide reasonably available evidence of payment for Work invoiced to Owner.
3. Time and completion
Work begins on [START DATE] after [IDENTIFY SITE, PERMIT, OR PAYMENT CONDITIONS]. The target date for substantial completion is [DATE]. Final completion is due [DATE]. Exhibit C — Schedule identifies milestones and any owner decisions needed by a stated date.
A party expecting delay shall notify the other promptly in writing, explain the cause and expected effect, and propose a revised schedule. A time or price change requires a signed change order except where this Contract expressly provides otherwise. Documented delay costs, if any, will be addressed under the agreed change and default provisions.
4. Site, changes in conditions, and protection
Owner shall disclose known site restrictions, hazardous materials, and utility information in its possession that affect the Work. Contractor shall promptly stop affected Work and notify Owner if concealed conditions or suspected hazardous materials materially differ from the information supplied. The parties will agree in writing on any testing, remediation, price, or schedule change before affected Work resumes, except emergency work needed to prevent immediate injury or damage.
Contractor shall protect the Work, adjacent property, and persons at the site through reasonable measures. Each party shall promptly notify the other of a material accident, property damage, or government notice related to the Project.
5. Change orders
A change order must describe the changed Work, price adjustment, schedule adjustment, and any affected exhibit. It is effective when signed by both parties. The authorized signers are [OWNER SIGNER] and [CONTRACTOR SIGNER]. If urgent work is necessary to protect persons or property, Contractor may perform the minimum protective work and promptly provide notice and cost records; further work requires a signed change order.
6. Insurance, warranty, and liens
Contractor shall maintain the insurance listed in Exhibit D — Insurance and Bonds, including any legally required workers' compensation coverage. Owner shall identify any owner-provided builder's risk or property coverage in Exhibit D. Certificates and any required bonds shall be delivered by [DATE].
Contractor warrants the Work against defects in workmanship and materials for [NUMBER] months after [FINAL ACCEPTANCE / OTHER DATE]. This is an agreed contractual warranty period. On written notice of a covered defect, Contractor shall inspect and correct it within a reasonable time, subject to access and any listed exclusions: [EXCLUSIONS / NONE].
A lien waiver requested with a progress payment is effective only to the extent of payment actually received for the identified Work, consistent with 49 P.S. § 1401(b) for nonresidential property. Each waiver will identify its payment, covered period, and any reserved claims.
7. Default and termination
A material failure to perform must be described in a written notice to the other party. The receiving party has [NUMBER] days after receipt to cure, or, if cure cannot reasonably be completed in that time, to begin and diligently continue a cure. If not cured, the nondefaulting party may suspend or terminate the affected Work by further written notice, subject to any nonwaivable rights under applicable payment law.
On termination, Contractor shall secure the site, deliver paid-for project documents, and account for Work properly performed, materials properly ordered, payments received, and lawful credits. Owner shall pay undisputed amounts due, less amounts properly withheld for documented defects and costs as allowed by this Contract and law. Termination does not erase accrued payment rights or claims.
8. Responsibility and risk
Each party is responsible for loss or injury to the extent caused by its own negligence or willful misconduct. Contractor shall correct damage to Owner's property caused by Contractor or its subcontractors, except to the extent caused by Owner or others outside Contractor's control. The parties may describe any additional agreed indemnity or insurance allocation here: [TEXT / NONE].
Neither party makes a blanket waiver of statutory payment remedies. Any agreed limitation of liability is [TEXT / NONE], subject to rights that Pennsylvania law does not permit the parties to waive.
9. Notices
A notice under this Contract must be in writing and delivered to the representative and address stated at the start by [HAND DELIVERY / TRACKED MAIL / EMAIL WITH ACKNOWLEDGED RECEIPT]. A party may change its notice details by written notice. Statutory notices must also satisfy any separate method and timing required by law.
10. Disputes and governing law
The parties will first exchange a written description of the dispute and meet within [NUMBER] days to seek a resolution. Either party may then bring a claim in a court of competent jurisdiction in [COUNTY] County, Pennsylvania, unless a separate signed dispute agreement controls. Pennsylvania law governs this Contract.
11. Entire agreement and signatures
This Contract and its completed exhibits are the entire agreement for the Work. A change must be in a writing signed by both parties. If one provision is unenforceable, the remaining provisions continue to the extent lawful. The parties may sign counterparts and exchange signed copies by [METHOD].
Owner: [FULL LEGAL NAME]
Signature: ______________________________ Date: [__/__/____]
Printed name and title: [NAME AND TITLE]
Contractor: [FULL LEGAL NAME]
Signature: ______________________________ Date: [__/__/____]
Printed name and title: [NAME AND TITLE]
Exhibit A — Scope and specifications
[LIST DRAWINGS WITH DATES, WORK, EXCLUSIONS, MATERIALS, PERMITS, AND DOCUMENT PRIORITY.]
Exhibit B — Price and payment schedule
[LIST CONTRACT PRICE BREAKDOWN, BILLING PERIOD, ALLOWANCES, UNIT PRICES, TAXES, AND PAYMENT MILESTONES.]
Exhibit C — Schedule
[LIST START, MILESTONES, SUBSTANTIAL COMPLETION, FINAL COMPLETION, AND OWNER DECISIONS.]
Exhibit D — Insurance and bonds
[LIST EACH POLICY, LIMIT, INSURED PARTIES, DEDUCTIBLE, CARRIER, AND ANY REQUIRED PERFORMANCE OR PAYMENT BOND.]
About this template
- Last updated
- October 3, 2026
- Citations checked
- October 3, 2026
- Jurisdiction
- Pennsylvania
- Category
- Real Estate
Legal authority
- 73 P.S. § 503 (Contractor and Subcontractor Payment Act scope)
- 73 P.S. § 505 (owner payment obligations)
- 73 P.S. § 506 (good-faith withholding for deficiency items)
- 73 P.S. § 509 (retainage timing)
- 49 P.S. § 1401(b) (nonresidential mechanics' lien waiver limits)
Real estate documents transfer ownership, define who can use a property, and record agreements between buyers, sellers, landlords, and tenants. Deeds, purchase agreements, leases, and easements have to be drafted to meet state recording requirements, and mistakes show up at closing or years later in title disputes. Good real estate paperwork moves transactions forward quickly and avoids the kind of problems that only surface when it is time to sell or refinance.
Not legal advice
This template is provided for informational purposes. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.
Checked against the law it cites
A reviewer verified this template's legal citations against the official source on October 3, 2026.
73 P.S. § 503(a) (checked October 3, 2026): "This act shall not apply to improvements to real property which consists of six or fewer residential units which are under construction simultaneously."
73 P.S. § 503(c) (checked October 3, 2026): "Unless specifically authorized under this act, parties to a contract or other agreement may not waive a provision of this act by contract or other agreement."
73 P.S. § 505(c) (checked October 3, 2026): "Except as otherwise agreed by the parties, payment of interim and final invoices shall be due from the owner 20 days after the end of a billing period or 20 days after delivery of the invoice, whichever is later."
73 P.S. § 506(b)(1) (checked October 3, 2026): "Except as provided under section 9, if an owner withholds payment from a contractor for a deficiency item, the amount withheld shall be reasonable and the owner shall notify the contractor of the deficiency item by a written explanation of its good faith reason within 14 calendar days of the date that the invoice is received."
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