Construction Agreement

A construction agreement template helps to avoid disagreements or miscommunication over the project, protecting the financial and legal interests of the parties involved.
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This Agreement outlines the terms and scope of a proposed real estate construction project between the Client and the Contractor. The Client, typically the property owner, intends to develop a project on the property, and the Contractor has been hired by the Client to construct the project.

It is preferable that the parties to the Agreement are corporate entities rather than individuals in order to protect the financial and legal interests of the parties involved and to help avoid any potential misunderstandings or disputes.

How to use this document

A business owner in a construction business can use this agreement to enter into agreements to develop properties. This agreement should highlight the following terms as agreed and negotiated by the parties:

  • Project Description
  • Project Cost and Payment Terms
  • Construction Scope
  • Dispute Resolution Mechanism
  • Cancellation and Termination Policy
  • Insurance Policy
  • Defects Liability Period and Payment of Retention Sum

Other names for this document

  • Construction Contract
  • Independent Contractor Agreement (where it is just a single contractor)

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