Residential Construction Contract

RESIDENTIAL CONSTRUCTION CONTRACT

Before you use this: Complete the project and state fields, choose one price method, and attach the plans, payment schedule, and any notices or forms required for this project and location. The signed selections and exhibits are part of this Contract.

This Residential Construction Contract (Contract) is made on [__/__/____] between:

1. Project and contract documents

Property address: [________________________________]

Project type and description: [________________________________]

Contractor shall perform the work described in Exhibit A, using the plans and specifications identified in Exhibit B (together, the Work). Exhibit A lists included work, excluded work, owner-supplied items, material selections, allowances, and any demolition, site, utility, or design work. The parties shall initial each completed exhibit. Work outside the completed scope requires a change order under Section 5.

The Contract Documents are this Contract, Exhibits A through [____], and change orders signed by both parties. If documents conflict, the later signed change order controls its subject, followed by this Contract and then the signed exhibits. A change order affects only what it identifies.

2. Price and payment

Choose one price method:

☐ Fixed price. Owner shall pay $[____________] for the Work in Exhibit A, subject to signed change orders and the allowance adjustment below.

☐ Cost plus. Owner shall reimburse the documented cost categories in Exhibit C and pay Contractor ☐ $[____________] ☐ [____]% of those costs as a fee. The parties select ☐ a guaranteed maximum of $[____________] ☐ no guaranteed maximum. Exhibit C states included and excluded costs, markup, supporting records, and treatment of unused allowances.

Allowances: The amounts and items in Exhibit A are included in the selected price method. Contractor shall obtain Owner's written approval of any selection that exceeds an allowance before ordering it. The final price increases by the approved excess and decreases by any unused allowance, with the adjustment shown on an invoice or change order.

Owner shall pay the deposit of $[____________] on [__/__/____], subject to any limit applicable to this project. Later payments follow Exhibit D, which identifies each milestone, amount or calculation, invoice documentation, and due date. No installment is due solely because a calendar date has arrived if Exhibit D makes completion of a milestone a condition.

Owner shall notify Contractor of a disputed invoice item and the reason for the dispute within [____] days after receipt. Owner shall pay the undisputed portion by the date in Exhibit D. The parties shall reconcile the disputed amount from the supporting records; silence does not convert an unperformed item into completed Work.

Retainage, if selected: ☐ None ☐ Owner retains [____]% from each eligible progress payment. Exhibit D states the conditions and time for releasing retained funds. Any required payment or retainage rule for the selected project location controls over an inconsistent selection.

Late charge, if selected: ☐ None ☐ [____]% per [month/year] on an undisputed amount after [____] days' written notice, only to the extent permitted by governing law.

3. Schedule and site access

Contractor shall begin on [__/__/____], or within [____] days after these selected prerequisites are met: [permit / site access / financing or other prerequisite: ________________________________]. The target for substantial completion is [__/__/____]. Substantial completion means the Work can be used for its stated purpose, subject to identified punch-list items and required approvals. Contractor shall complete punch-list items by [__/__/____] or within [____] days after the signed list, subject to access and delivery of selected materials.

Owner shall provide access on [days and hours: ________________________________], identify known site restrictions and utility locations available to Owner, make selections by the dates in Exhibit A, and coordinate any owner-supplied work. Contractor shall protect the site and existing property as described in Exhibit A and provide progress updates every [____] days by [email / other: ________________________________].

A party affected by a material delay shall notify the other in writing within [____] days after learning of it, describing its cause, expected effect, and steps to reduce it. A schedule or price change requires a signed change order. The parties shall document concealed conditions, owner changes, inspection delays, weather, and unavailable materials as they arise; none automatically changes the price or completion date.

4. Permits, workers, and insurance

Permit applicant and payer: [Owner / Contractor: ________________________________]. Exhibit A identifies the permits, approvals, inspections, and responsibility for each. Contractor shall coordinate the inspections assigned to Contractor and shall not conceal Work awaiting an inspection identified in the project plan.

Contractor may use the subcontractors listed in Exhibit E and shall remain responsible to Owner for their contracted Work and payment as provided here. Any substitution of a named key subcontractor requires notice to Owner. Owner may communicate concerns through Contractor's project contact: [________________________________].

The parties select insurance in Exhibit F by coverage type, insured party, limit, period, and certificate delivery date. Contractor shall give Owner the agreed certificates by [__/__/____]. Neither a certificate nor this Contract expands the coverage actually provided by an insurance policy.

5. Changes and concealed conditions

Either party may request a change. Contractor's written proposal shall state the changed Work, price or pricing formula, effect on allowances, and effect on the schedule. A change becomes part of this Contract when both parties sign a numbered change order. Work needed immediately to protect people or property may proceed only to the extent reasonably necessary; the parties shall document its scope and cost as soon as practicable.

If concealed conditions materially differ from those described in the Contract Documents, Contractor shall stop the affected Work, secure the area, and notify Owner. The parties shall record the condition and agree on a change order before the affected Work resumes, except for protective work described above.

6. Completion, warranty, and payment records

At substantial completion, the parties shall inspect the Work and sign a punch list identifying incomplete or corrective items. Signing a punch list records observations; it does not certify that undiscovered defects are absent. Final payment is due under Exhibit D after the agreed completion documents and any required inspection approvals are delivered.

Contractor warrants that its Work will substantially conform to the signed plans and specifications and will be performed with the care stated in Exhibit A. Contractor's contractual correction period is [____] months from [substantial completion / final completion: ________________________________]. Owner shall describe a claimed defect in writing to [contact: ________________________________]. Contractor shall respond within [____] days and arrange access to inspect and correct covered Work within a reasonable agreed schedule. Exhibit A identifies any material or manufacturer warranties and exclusions; this clause does not waive rights that cannot be waived under governing law.

For each progress payment, Contractor shall provide the payment records and lien releases identified in Exhibit D in the form and sequence required or permitted for the project location. A release stated to depend on payment shall identify that payment; an unconditional release is delivered only after the corresponding funds have cleared. The parties shall identify subcontractors and suppliers whose payment is being documented. The parties shall address any filed lien through the process available under governing law and record the steps taken.

7. Default and termination

If a party materially fails to perform, the other may give written notice describing the failure and allow [____] days after receipt to cure, or a longer reasonable period stated in the notice if cure cannot reasonably be completed within that time and is being pursued diligently. If uncured, the nondefaulting party may suspend its affected performance or terminate by a further written notice, subject to governing law. A safety emergency may require immediate protective action.

Owner may end the remaining Work for convenience by giving [____] days' written notice. Contractor shall stop new commitments, protect completed Work, and provide an itemized account of completed Work, documented noncancelable commitments, payments received, and credits. Owner shall pay the agreed amount for completed Work and approved noncancelable commitments, less prior payments and documented credits, as shown in a final accounting. The parties select any additional agreed termination charge here: ☐ None ☐ $[____________] or formula [________________________________], subject to governing law.

On termination, Contractor shall make the site reasonably safe and deliver paid-for plans, warranties, and materials identified in the final accounting. Transfer of a subcontract, permit, or supplier order requires the needed third-party consent.

8. Disputes and notices

The parties shall first send a written description of a dispute to the notice addresses below and meet or confer within [____] days after receipt. Mediation applies only if both parties select it here: ☐ Yes, in [county/state: ________________________________], with mediator selection and cost sharing [________________________________] ☐ No. An unresolved dispute may be brought in a court that has jurisdiction; the parties select venue, to the extent enforceable, in [county and state: ________________________________]. Governing state law: [________________________________]. No attorney-fee award, arbitration, jury waiver, or shortened filing period is created by this clause.

Notices under this Contract shall be sent by [selected methods: ________________________________] to the addresses below. A sender shall retain evidence of delivery. Either party may change its notice address by a notice using a selected method.

9. Required notices and general terms

Project-specific notices and forms: Exhibit G lists the signed copies of any cancellation notice, consumer disclosure, lien notice, lead or other required notice, and form selected for this project. If a right to cancel applies, the attached notice states the actual period, method, recipient, and refund terms. This Contract itself states no universal cancellation period.

This Contract and its signed exhibits are the parties' agreement for the Work. A modification must be in writing and signed by both parties. If a provision cannot be enforced, the rest remains in effect to the extent it can operate without that provision. A failure to enforce one breach is not a waiver of a later breach. Neither party may assign its performance obligations without the other's written consent.

10. Signatures

The parties agree to the completed terms and exhibits listed below. Each receives a copy of the signed Contract and attachments.

Additional owner, if applicable: Signature [________________________________] Date [__/__/____]

Attached exhibits (identify date or version): A Scope [____________]; B Plans [____________]; C Cost plus terms (if used) [____________]; D Payment schedule [____________]; E Subcontractors [____________]; F Insurance [____________]; G Required notices and forms [____________]; other [____________].

Exhibit A — Scope, selections, and allowances

Included Work and materials: [________________________________]

Excluded Work and owner-supplied items: [________________________________]

Allowance item, included amount, selection deadline, and approved adjustment: [________________________________]

Site protection, cleanup, and quality details: [________________________________]

Owner initials: [____] Contractor initials: [____]

Exhibit B — Plans and specifications

Document title, author, date, revision, and attachment or location: [________________________________]

Owner initials: [____] Contractor initials: [____]

Exhibit C — Cost plus terms, if selected

Reimbursable cost categories, exclusions, records, fee calculation, and maximum-price treatment: [________________________________]

Owner initials: [____] Contractor initials: [____]

Exhibit D — Payment schedule and releases

Owner initials: [____] Contractor initials: [____]

Exhibit E — Subcontractors and permits

Named subcontractors, trade, and contact: [________________________________]

Permits, applicant, payer, and inspection coordinator: [________________________________]

Owner initials: [____] Contractor initials: [____]

Exhibit F — Insurance

Coverage, insured party, limit, coverage period, certificate and any additional-insured agreement: [________________________________]

Owner initials: [____] Contractor initials: [____]

Exhibit G — Project notices and forms

Notice or form title, governing project location, date/version, and attached copy: [________________________________]

Owner initials: [____] Contractor initials: [____]

Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. An attorney licensed in the relevant jurisdiction must review and customize this document before use. Use of this template does not create an attorney-client relationship.