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CONSTRUCTION CONTRACT

THIS CONSTRUCTION AGREEMENT, herein referred to the "Agreement," and being executed

on ________________________ by and between ________________________,

________________________ located at ________________________,

________________________, ________________________ ________________________ in the

County of ________________________ and whose contact number is

________________________ whose license number is ________________________ and

________________________, ________________________ located at

________________________, ________________________, ________________________

________________________ in the County of ________________________ and whose contact

number is ________________________.

________________________ desires to provide Construction services to

________________________ and ________________________ desires to obtain said

construction services from ________________________.

THEREFORE, in consideration of the mutual promises set forth below,

________________________ and ________________________ shall agree to the terms and

conditions herein contained in this Contract and enumerated as follows:

Detailed Description of Work to Be Performed

________________________ agrees to perform in a good and workmanlike manner, all work

detailed in the Specifications Sheet which is annexed hereto as Exhibit A, which is incorporated

herein by reference. Any modifications or alterations from the herein contained terms and

conditions annexed must be done in writing.

Detailed Scope of Work

________________________ shall provide all services, materials and labor for the construction

of ________________________ on the property located at ________________________,

________________________, ________________________ ________________________

hereinafter referred to as the "Worksite."

Detailed Description of Materials to be Used

All materials to be used in the performance of the work herein described in the Specifications

Sheet, which has been annexed, must be in writing. All work completed will meet or exceed the

Quality Standards for the Professional Builder, as established and set forth by the National

Association of Home Builders (www.nahb.org).

In the event that the Contractor is a corporation, then a certificate that the individual executing this

contract is duly authorized to sign must accompany this contract.

Price

________________________ agrees to complete all work herein described and

________________________ shall pay the Contractor for the performance of this contract for the

total sum of ________________________ dollars in accordance with the terms of this contract.

Upon the receipt of final payment on this contract, ________________________ shall be released

and discharged from any and all claims against ________________________ for any work

performed hererunder or any alteration hereto.

Payment

________________________ agrees to pay ________________________ interest, at the rate of

________________________ per annum, on any unpaid balance owed under this contract that is

outstanding more than thirty (30) days in the arrears. ________________________ further agrees

to pay all reasonable attorney fees and costs of collection in the event

________________________ fails to pay ________________________ any of the amounts due

as outlined in EXHIBIT "C."

Checks shall be made payable and sent to:

________________________

________________________, ________________________

________________________

Commencement and Completion of Work

Contractor will not begin work or order any materials before the third (3) day following the signing

of this Agreement, unless otherwise specified here in writing. The Contractor will begin work on,

or about ________________________. Barring any delay caused by circumstances beyond the

Contractor's control, the work shall be completed by ________________________.

________________________ hereby acknowledges and agrees that the scheduling dates are

approximate and that any delay attributable to the presence of hidden conditions or requiring

additional work discovered during the course of construction, or delays arising out of the receipt

of equipment and/or materials, that are not avoidable by the contractor, shall not be considered as

violations of this Agreement.

Any materials to be supplied by ________________________ shall be delivered to the worksite

not less than forty eight (48) hours before the date upon which they will be required by the

Contractor in order to continue the work described. Failure of ________________________ to

supply such materials in a timely manner shall also not be considered to be the responsibility of

the Contractor.

No Acceleration of Payments – Escrowing Allowed

________________________ may not require payments to be made in advance of the time frame

specified above for the reason that he deems himself or the payments to be insecure. If, required,

as a prerequisite to continuing the work described herein, but the balance of the payments under

this contract that are in control of ________________________ be placed in a joint escrow

account that requires the signature of both ________________________ and

________________________ for withdrawal.

Insurance

The Contractor agrees to procure and maintain in full force and effect during the term of this

Contract, at its own cost, the following coverage:

• Worker's Compensation Insurance as required by the Labor Code of the State of

________________________ and Employer's Liability Insurance.

• Commercial General Liability Insurance with minimum combined single limits of ONE

MILLION DOLLARS ($1,000,000) each occurrence and ONE MILLION DOLLARS

($1,000,000) general aggregate. The policy shall be applicable to all premises and

operations. The policy shall include coverage for bodily injury, broad form property

damage (including completed operations), personal injury (including coverage for

contractual and employee acts), blanket contractual, independent contractors, products,

and completed operations. The policy shall include coverage for explosion, collapse, and

underground hazards.

• Automobile Liability Insurance with minimum combined single limits for bodily injury

and property damage of not less than ONE MILLION ($1,000,000) for any one

occurrence, with respect to each of Contractor's owned, hired or non-owned vehicles

assigned to or used in performance of the services or work under this Contract.

• Contractor shall procure and maintain, and shall cause any Subcontractor of the

Contractor to procure and maintain, the minimum insurance coverage listed herein. Such

coverage shall be procured and maintained with forms and insurers acceptable to the

Company/Client. All coverage shall be continuously maintained to cover all liability,

claims, demands, and other obligations assumed by the Contractor pursuant. In the case

of any claims-made policy, the necessary retroactive dates and extended reporting periods

shall be procured to maintain such continuous coverage.

• A Certificate of Insurance shall be completed by the Contractor's Insurance Agent(s) as

evidence that policies providing the required coverage, condition, and minimum limits

are in full force and effect and shall be subject to review and approval by the

Company/Client prior to commencement of any services under this Contract. The

Certificate shall identify this Contract and shall provide that the coverage afforded under

the policies shall not be cancelled, terminated or materially changed until at least thirty

(30) days prior written notice has been given to the Company/Client. The Certificate shall

name Company/Client, its officers, and its employees as additional insured with respect

to the General Liability Insurance. The completed Certificate of Insurance shall be sent

to:

________________________

________________________, ________________________

________________________

• Failure on the part of the Contractor or Subcontractor to procure or maintain policies

providing the required coverage, conditions, and minimum limits shall constitute a material

Breach of Contract upon which the Company/Client may immediately terminate this

Contract, or at its discretion, the Company/Client may procure or renew any such policy

or any extended reporting period thereto and may pay any and all premiums in connection

therewith, and all monies so paid by the Company/Client shall be repaid by Contractor to

the Company/Client upon demand, or Company/Client may offset the cost of the premium

against any monies due to Contractor from the Company/Client.

• Company/Client reserves the right to request and receive a certified copy of any policy and

any endorsement thereto. Contractor agrees to execute any and all documents necessary to

allow the Company/Client access to any and all insurance and endorsements pertaining to

this particular job.

• Every policy required above shall be primary insurance, and any insurance carried by the

Company/Client, its officers, or its employees shall be excess and not contributory

insurance to that provided by the Contractor. The Contractor shall be solely responsible for

any deductible losses under the policies required above.

• The Contractor shall not be relieved of any liability, claims, demands, or other obligations

assumed pursuant to this Contract by reason of its failure to procure and maintain

insurance, or by reason of its failure to procure or maintain insurance in sufficient amounts,

duration or types.

• As an independent contractor the Contractor is not entitled to Worker's Compensation

benefits under the Company/Client plan. Furthermore, the Contractor is obligated to pay

federal and state income tax on any monies' earned pursuant to this contractual relationship.

• The parties hereto understand and agree that the Company/Client, its officers, and its

employees, are relying on, and do not waive or intend to waive by any provision of this

Contract, the monetary limitation or any other rights, immunities, and protections provided

by state and federal laws.

Subcontracting

Contractor agrees that, not withstanding, any agreement for materials and/or labor between the

Contractor and a third party, Contractor is responsible to ________________________ for

completion of all work described in a timely and workmanlike manner.

Construction-Related Permits

The following construction-related permits will be necessary in order to complete the scope of the

work included in this Agreement: Building, Plumbing, Electrical, Mechanical, Water, Sewer,

Smoke Detector and Gas.

The Contractor, in accordance with current state and federal laws, shall be required to apply for

and obtain all construction-related permits. The contractor shall not be deemed responsible for

delays in the work described in this Agreement caused by regulatory, permit granting or inspection

agencies, authorities or individuals.

Modification

This Agreement, including the provisions relating to price and payment schedule cannot be

changed except by a written statement signed by both ________________________ and

________________________. However, cancellation by ________________________ is allowed

in accordance with the Notice of Cancellation as outlined under Rights to Cancellation below.

Rights To Cancellation

The Company/Client has the right to cancel the Contract Agreement, without any penalty or

obligation within three (3) business days after signing the contract by ordinary posted mail, by

telegram or certified mail, not later than midnight of the third business day of the signing of this

agreement.

Warranties

The Contractor agrees to warrant the finished project for one year beginning from the date of

completion for one year following. The Contractor agrees to correct any defect during the one (1)

year period in a prompt manner from the time the Contractor is notified. The

________________________ shall notify the Contractor of a defect as soon as the defect is

discovered. All notices of defect shall be in writing and shall state with specificity, the defect

discovered.

Contractor agrees to provide ________________________ with all manufacturers' warranties,

guarantees, instructional booklets, and other informative literature of the products and materials

used in the home.

No employee, agent, or subcontractor is authorized to make any representation or warranty on

behalf of the Contractor other than those contained in this Agreement. This warranty is non-

transferable.

Miscellaneous Provisions

This Contract is governed by the laws of ________________________.

Contractor shall not assign this contract. The provisions of the Contract are binding on the heirs,

successors or assignees of the parties.

The rights and remedies available under this Contract shall be in addition to any rights and

remedies allowed by law.

No failure to enforce any provision of this Contract on account of any breach thereof shall be

considered as a waiver of any right to enforce provisions of this Contract concerning any

subsequent or continuing breach.

The terms of this Agreement shall remain in full force and effect following final payment.

Completeness of Agreement for Execution

________________________ is hereby advised they should not sign this Agreement unless all

blank sections have been filled in or marked as void, delete or as not being applicable, and until

all exhibits and related or referenced documents that are incorporated herein and attached hereto.

Copy of Agreement to Be Given to Company/Client

This Agreement is governed by current state and federal laws. It must be executed in duplicate,

and an original signed copy hereof given to the Company/Client at the time of execution. No

work under this Agreement shall begin prior to the signing of this Agreement and transmitted to

the Company/Client of copy thereof.

Agreement to Arbitrate in the Extent of Dispute

The Contractor and the Company/Client hereby mutually agree in advance that in the event that

the Contractor has a dispute concerning this contract, the contractor may submit such dispute to

either the American Arbitration Association or to such other private arbitration service which has

been approved by the secretary of the Executive of Consumer Affairs and Business Regulations

and the consumer shall be required to submit to such arbitration as provided under current state

and federal laws. The decision and award of the arbitrator shall be final. The costs of such

proceedings shall be borne equally by both parties.

Severability Clause

The provisions of the Contract shall be deemed to be severable, and if any term, condition,

phrase or portion of the Contract shall be determined to be unlawful or otherwise unenforceable,

the remainder of the Contract shall remain in full force and effect, so long as the clause severed

does not affect the intent of the parties.

Indemnification

The ________________________ agrees to indemnify and hold harmless

________________________ and its employees, from and against all liability, claims, demands,

and expenses, including court costs and attorney fees, on account of any injury, loss or damage,

which may arise out of or are in any manner connected with the work to be performed under this

Contract, if any such injury, loss or damage is cause in whole or in part by, or is claimed to be

caused in whole or in part by, the negligent acts, errors, or omissions of the Contractor, any

Subcontractor of the Contractor, or any officer, employee, or agent of the Contractor. The

obligations of this Section shall not apply to damages which ________________________ shall

become liable by final judgment to pay to a third party as the result of the negligent act, error or

omission of ________________________

Executed as our free act and deed on ________________________.

_________________________________________

(Contractor Signature)

________________________________________________

(________________________)

_______________________________________

(Client/Company Signature)

______________________________________________

(________________________)

_______________________________________

(Client/Company Signature)

______________________________________________

(________________________)

This contract shall be considered null and void if it is not signed and returned to

________________________ within ten (10) business days from the date of the contract.

EXHIBIT A

SPECIFICATIONS SHEET

WORK DESCRIPTION

Design and construct a ________________________ with the following plan details:

ENGINEERING

Prepare and stake off area prior to commencement of work. Survey and draft a design and plan for

submission for the Building Department. ________________________

PLANS & PERMITS

________________________ shall supply all required building plans to apply for a building

permit from the City of ________________________ in the Municipality or Township of

________________________. The plans shall consist of all items necessary to complete the

construction work under this contract. The building permit shall consist of, but not limited to,

water, sewer, electric, plumbing and mechanical permit.

LANDCLEARING

Remove the desired trees and shrubbery from the site; all branches shall be ground up and left on

site. Any tree stumps shall be dug up and removed from the site to a legal disposal area.

EXCAVATION

________________________

SITE WORK

________________________

FOUNDATION

________________________

CONCRETE FLOORING

________________________

FRAMING

Frame the structure in accordance to the approved plans and shall be constructed using the

following materials:

________________________

ROOFING

________________________

WINDOWS

________________________

EXTERIOR & INTERIOR DOORS

________________________

GARAGE DOORS

________________________

BRICKWORK

________________________

FIREPLACE

________________________

VENTILATION

________________________

ELECTRICAL

________________________

PLUMBING

________________________

HEATING

________________________

GAS LINES

________________________

CENTRAL VACUUM

________________________

SECURITY SYSTEM

________________________

AIR CONDTIONING

________________________

INSULATION

________________________

WALL FINISH

________________________

INTERIOR TRIM

________________________

CABINETS

________________________

PAINTING

________________________

FLOORING

________________________

LANDSCAPING

________________________

SPRINKLER SYSTEM

________________________

EXTERIOR WALKWAYS

________________________

DRIVEWAY

________________________

DECK or PORCH

________________________

APPLIANCES

________________________

BATHROOM

________________________

FENCING

________________________

TILE

________________________

DUCT WORK

________________________

MISCELLANEOUS

________________________

EXHIBIT B

CORPORATION CERTIFICATE OF AUTHORIZATION

We, ________________________, Presiding Officer and ________________________,

Secretary of the meeting of the Board of Directors held on ________________________, a

quorum being present, said committee, by majority vote of the members present, did resolve and

authorize that ________________________ as ________________________ of the Corporation,

is authorized and directed to execute and deliver the Agreement on behalf of the Corporation and

to do and perform all acts and things which s/he deems to be necessary or appropriate to carry out

the terms of the Agreement and documents contemplated by the Agreement.

The undersigned further certifies that ________________________ now holds the office of

________________________ and s/he has held that office since ________________________.

IN WITNESS WHEREOF, the undersigned has executed this Certificate of Authority on

________________________.

Secretary Signature: __________________________________________________

(________________________)

EXHIBIT C

PAYMENT SCHEDULE

WORK DESCRIPTION

PERCENT PAYABLE OF TOTAL COST

Deposit to Begin Work

________________________%

Foundation Completion

________________________%

House Deck Completion

________________________%

Framing Completion

________________________%

Roof Sheathing

________________________%

Windows Installed

________________________%

Roofing Completion

________________________%

Brick Delivered & Started

________________________%

Brickwork Completed

________________________%

Plumbing Roughed

________________________%

Electric Roughed

________________________%

Rough Heating System Completed

________________________%

Insulation Completed

________________________%

Plasterwork Completed

________________________%

Finish Heating Completed

________________________%

Interior Trim Installed

________________________%

Interior Doors Installed

________________________%

Kitchen Cabinets & Tops Installed

________________________%

Concrete Floor Completed

________________________%

Ceramic Tile Flooring Completed

________________________%

Carpeting Completed

________________________%

Finish Plumbing Fixtures Completed

________________________%

Bathroom Cabinets & Counter Completed

________________________%

Finish Electric Completed

________________________%

Interior Painting Completed

________________________%

Landscaping Completed

________________________%

Driveway Completed

________________________%

Appliances Installed

________________________%

Sprinkler System Installed

________________________%

Occupancy Permit

________________________%

Final Company/Client Inspection

________________________%

Upon final inspection, the Company/Client shall submit, in writing, a punch list of any item that

may need attention by the contractor upon the completion of substantial construction. At that time,

the contractor will make any needed adjustments to satisfy the aforementioned punch list as soon

as possible. Upon completion of the punch list, the Company/Client will do a final walk through

and sign off for payment of the balance of the contract which shall be due.

All selections of materials shall be made from the contractor's vendors and suppliers. Any overages

on the allowances given will be charged a 10% fee to cover the contractor's overhead and profit.

Company/Client agrees not to take occupancy of the premises until the contractor has been paid in

full unless the contractor has provided written permission to the Company/Client.

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