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Agreement Between Contractor and Owner for Construction

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Employment Agreement with a Vice President of an Electrical Contractor

Employment agreement made on the (date), between

of

, referred to herein as Employee, and

, a corporation organized and existing under the laws of the State of Kansas, with its principal office located at

, referred to herein as Employer.

Whereas, Employer desires to hire Employee as a Vice President because of Employee's business experience and expertise in Electrical Contracting; and

Whereas, Employee desires to be employed by Employer as a Vice President on the terms set forth below;

Now, therefore, for and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

I. Employment

A. Employer hereby employs and hires Employee as a Vice President to engage in estimating, operations and management for Employer, and Employee accepts and agrees to such hiring and employment, subject to the general supervision and pursuant to the orders, advice, and direction of Employer.

B. Employee shall also perform such other duties as are customarily performed by one holding such position in other, same, or similar businesses or enterprises as that engaged in by Employer, and shall also additionally render such other and unrelated services and duties as may be assigned to from time to time by Employer.

II. Term of Employment. The term of Employee's employment shall be years commencing on (date). Employee's employment may be terminated for Cause as defined in Paragraph V below.

III. Compensation. Employer shall pay Employee an annual salary of $ payable monthly, on the day of each month, commencing (date). Employer shall provide Employee with heath insurance in accordance with the practice of Employer as modified from time to time. Employer shall reimburse Employee for all necessary expenses incurred by Employee while traveling pursuant to Employer's directions.

IV. Vacations and other Absences. Employee shall be entitled to paid vacations each year in accordance with Employer's then-current vacation policy for senior executives. Employee shall be subject to Employer's policies and procedures relating to other absences from regular duties for holidays, sick or disability leave, leave of absence without pay, or leave for other reasons, as those customarily provided to the Employer's senior executives.

V. Termination for Cause. The Employer may terminate the Employee's employment immediately for Cause. For purposes of this Agreement, Cause means:

A. Any act or omission of the Employee constituting misconduct, negligence, fraud, misappropriation, embezzlement, conflict of interest or competitive business activities, including but not limited to any arrest on criminal charges;

B. Any chemical dependence which materially adversely affects the performance of Employee's duties and responsibilities to the Employer;

C. Breach of the Employee's fiduciary obligations to Employer in a material respect;

D. Employee's failure to perform duties pursuant to this Agreement and/or Employer's policies and procedures; and/or

E. Employee's misconduct resulting in monetary loss to the Employer or damage to the reputation of Employer;

VI. Confidentiality.

A. Nondisclosure. Employee shall not, during or after the term of this Agreement, directly or indirectly, use, disseminate, or disclose to any person, firm, or other business entity, for any purpose whatsoever, any information not generally known in the industry in which Employer is or may be engaged which was disclosed to Employee or known by Employee as a consequence of or through his employment by Employer. This includes information regarding Employer's processes, customers, services, suppliers, and related matters, and also includes information relating to research, development, inventions, manufacture, purchasing, accounting, and marketing.

B. Confidential Relationship. Employee shall hold in a fiduciary capacity for the benefit of Employer all information described in Paragraph A above, along with any and all inventions, discoveries, concepts, ideas, improvements or know- how, discovered or developed by Employee, solely or jointly with other employees, during the term of this Agreement, which may be directly or indirectly useful in or related to the business of Employer, or may be within the scope of its or Employer's research or development work.

C. Return of Documents. To protect the interests of Employer, Employee agrees that, during or after the termination of Employee's employment by Employer, all documents, records, notebooks, and similar repositories containing such information described in Paragraph A above, including copies of such items, then in Employee's possession or work area, whether prepared by Employee or others, are the property of Employer and shall be returned to Employer upon Employer's request.

VII. No Waiver. The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

VIII. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of Kansas.

IX. Notices. Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

X. Mandatory Arbitration. Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

XI. Entire Agreement. This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

XII. Modification of Agreement. Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

WITNESS our signatures as of the day and date first above stated.

(Signature of Employee)

(Printed Name of Employee)

(Name of Employer)

By:

(Signature of Officer)

(Printed Name & Office in Employer)

Enter text

What this Agreement Is and when it applies

An Agreement Between Contractor and Owner for Construction is a written contract that sets the legal terms for a construction project, including scope of work, price or payment schedule, project timeline, permits and inspections, insurance and bonding requirements, change order procedures, lien and waiver terms, and dispute resolution. It allocates risk between the parties, defines contractor deliverables and owner obligations, and becomes enforceable when signed by authorized representatives of both parties. Tailoring for state law, licensing, and permit conditions is common.

Why using a clear construction agreement matters

A precise written agreement reduces disputes, clarifies payment and acceptance milestones, and documents responsibilities such as permits, insurance, and lien waivers. Well-drafted terms protect both owner and contractor by setting remedies, deadlines, and contingency procedures.

Why using a clear construction agreement matters

Who prepares and signs this agreement

Typical users include general contractors, subcontractors, property owners, construction managers, and design professionals who need a formal record of project terms before work begins.

  • General contractors and subcontractors executing scope, schedule, and payment terms on commercial and residential jobs.
  • Property owners and developers documenting responsibilities, funding, and acceptance criteria for a project.
  • Construction managers, architects, and lenders who need contractual clarity for project oversight and disbursements.

Essential clauses to include in the construction agreement

Include clear, enforceable clauses that address price, schedule, scope, changes, insurance, and dispute resolution to reduce ambiguity and support enforcement if disagreements arise.

Scope of Work

Describe work in measurable terms, reference drawings and specifications, and attach exhibits. Precise scope limits disputes about what is included or excluded from the contract price.

Price & Payment

State contract sum, retainage percentage, progress payment schedule, milestones, and remedies for late payment. Tie payment releases to documented acceptances and lien waiver delivery.

Schedule

Specify start date, critical milestones, substantial completion standard, float, and liquidated damages or delay excusable events to allocate time-related risk.

Change Orders

Require written change orders for scope, price, and schedule adjustments. Describe approval authority and a process for pricing unforeseen conditions.

Insurance & Bonds

Set required insurance types and limits, naming conventions for additional insureds, and performance/payment bond requirements where applicable for owner protection.

Dispute Resolution

Define notice periods, negotiation, mediation, arbitration or court selection, choice of law, and venue to streamline conflict resolution and limit litigation expense.

Step-by-step: completing and executing the agreement

Follow these steps to prepare, review, and finalize the contract for a compliant, enforceable execution.

  • 01
    Prepare draft: Populate parties, scope, price, and schedule.
  • 02
    Review terms: Confirm insurance, bonds, permits, and warranties.
  • 03
    Approve changes: Use written change orders for deviations.
  • 04
    Execute signatures: Obtain authorized signatures and dates from both parties.

How to configure an online signing workflow

Set up fields, signer order, and authentication so executed agreements capture intent, attribution, and retention required by ESIGN and state law.

Field Configuration
Signature fields Place signature, date, and initials where required.
Signer order Set role-based routing: contractor then owner.
Authentication Use email plus optional SMS or KBA as needed.
Attachments Include drawings, permits, and insurance certificates.

Where to send, file, and store executed agreements

A standard routing pattern ensures parties and stakeholders receive the signed agreement and supporting documents for payment, permits, and recordkeeping.

  • To Owner: Owner receives fully executed original or certified copy.
  • To Contractor: Contractor retains executed copy for mobilization.
  • To Lender/PM: Send copy to lender or project manager if financing or oversight applies.
  • File Records: Store electronic master + audit trail in secure repository.

Digital signing and file-format considerations

Ensure the e-signature platform supports PDF and DOCX, secure storage, and an audit trail that captures timestamps and signer attribution.

  • Supported formats: PDF and DOCX
  • Integrations: Salesforce, NetSuite, Procore
  • Security features: Audit trail, TLS, AES-256

Typical contract deadlines and timing expectations

Set clear calendar dates and triggers for payments, milestones, and document filings to help manage cash flow and compliance.

Contract Execution Date:

Effective upon last signature; starts notice and warranty periods.

Work Start Date:

Date construction may begin per schedule.

Substantial Completion:

Milestone for occupancy and retainage triggers.

Final Payment:

Due after punch-list completion and lien waivers.

Release of Retainage:

Release timing tied to final acceptance and lien clearance.

Key project milestones from contract award to closeout

Plan milestones that align contract payments with verifiable deliverables and permit approvals to protect cash flow and completion incentives.

01

Award & Mobilization

Contract signed and site mobilization begins.

02

Permits & Preconstruction

Permits obtained and preconstruction submittals approved.

03

Construction Milestones

Progress phases completed and inspected.

04

Final Acceptance

Punch list cleared and final payment processed.

Common preparation mistakes to avoid

  • Using vague scope descriptions that lead to disputed extra work and change order claims.
  • Failing to require lien waivers and conditional releases tied to each payment milestone.
  • Omitting insurance limits or named additional insureds required by owners or lenders.
  • Skipping a written change order process and allowing verbal scope changes without price adjustment.

Risks and legal consequences of an incomplete or incorrect agreement

Mechanic's Lien Risk: Unpaid contractors may file liens.
Payment Disputes: Late payments trigger interest and disputes.
Permit Violations: Work without permits can halt projects.
Delay Damages: Contractor or owner may owe damages.
Insurance Gap: Insufficient coverage exposes parties to claims.
Defective Work Liability: Costly remediation and warranty claims.

eSignature vendor comparison for executing construction agreements

Compare typical vendor pricing and capabilities relevant to construction contracting. signNow is listed first for column alignment; confirm plan details with each vendor before purchase.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no card No No Limited trial Limited trial
Bulk Send Yes (Business Premium+) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/yr Varies by plan Varies by plan Varies by plan

Real-world examples of using an agreement between contractor and owner

These short examples illustrate how organizations use e-signed construction agreements to speed execution and preserve compliance.

Martin Properties

Tim Martin used digital execution to complete project contracts without in-person meetings.

  • Client acceptance and lien waivers were tied to progress payments.
  • The firm processed documents online with consistent compliance and built-in security, enabling faster mobilization and clearer audit trails across multiple projects.

BIS

Dan Rotelli centralized contract routing through an integrated signing workflow.

  • Routing enforced required insurance certificates and subcontractor waivers.
  • Centralization improved visibility into obligations, reduced missing waiver occurrences, and shortened payment cycles while maintaining documented approval steps for each draw.

Common questions about executing and enforcing the agreement

Answers to frequent questions about e-signatures, notarization, signatory authority, and dispute-handling for construction agreements.


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