Basic Construction Contract

Basic Construction Contract Agreement

Agreement made on the (date), between (Name of Owner) of referred to herein as Owner, and (Name of Contractor), a corporation organized and existing under the laws of the state of , with its principal office located at referred to herein as Contractor.

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:

1. The Work

Contractor shall construct the items identified in Exhibit A attached hereto and incorporated herein by reference, hereinafter referred to as the Work. Said Work will be performed in accordance with the Contract Documents, as identified in Article 8 of this Agreement on property on the property described in Exhibit B attached hereto and incorporated herein by reference, said property referred to hereinafter as the Property.

2. Contract Time

The Work will be completed on or before (date), hereinafter called the Completion Date, subject to modifications in approved Change Orders.

3. Contract Price

Owner shall pay to Contractor an amount equal to $ for completion of the Work.

4. Change Orders

Any increase or decrease in the Contract Price, change in the Work or change in the Contract Time must be set forth in a change order signed by Owner and Contractor and approved by the Lender (Change Order).

5. Payment Procedures

A. Progress Payments. Contractor shall submit to Owner a request for payment in a form agreed to by Owner and Contractor and approved by Lender (Request for Advance) which shall cover a period of at least calendar days. Within calendar days after a Request for Advance is presented, Owner shall notify Contractor if Owner has any concerns. Owner shall pay Contractor percent of the full amount covered by the Request for Advance within calendar days from the day it was presented while retaining percent thereof (Holdback) to be paid simultaneously with the final payment.

B. Final Payment. Final payment of the balance of the Contract Price including the Holdback shall be made in accordance with the following procedures:

1. When Contractor considers the Work substantially complete, Contractor shall notify Owner in writing. Within a reasonable time thereafter, Owner and Contractor shall inspect the Work.

2. If Owner delivers a written punch list to Contractor, then Contractor shall deliver to Owner a written notice that the Work is finally complete when Contractor believes that the punch list items have been completed.

3. When Final Completion has been reached and after Contractor has delivered all required documents, Contractor may make application for final payment following the procedure for progress payments.

6. Interest

Payments due and unpaid to Contractor shall bear interest at the rate of the lower of % per annum or the maximum rate allowed by law at the place of the Work.

7. Contractor’s Representation

Contractor has familiarized itself with the nature and extent of the Contract Documents, Work site, locality, and all local conditions and laws and regulations that may affect cost, progress, performance or furnishing of the Work.

8. Contract Documents

The Contract Documents which comprise the entire Contract between Owner and Contractor concerning the Work consist of this Contract, Exhibit A, the Plans and Specifications, and all Change Orders.

9. Contractor’s Responsibilities

A. Performance. Contractor shall perform the Work in accordance with the Contract Documents.

B. Personnel. Contractor shall provide competent, suitable personnel to survey and layout the Work and perform construction as required by the Contract Documents.

C. Furnished Items. Contractor shall furnish and be fully responsible for all materials, equipment, labor, transportation, construction equipment and machinery, tools, appliances, fuel, power, light, heat, telephone, water sanitary facilities, temporary facilities and all other facilities and incidentals necessary for the Work.

D. Materials. All materials and equipment shall be of good quality and new, except as otherwise provided in the Contract Documents.

E. Subcontractors. Contractor shall be fully responsible to Owner for all acts and omissions of its subcontractors, suppliers and other persons and organizations.

F. Permits and Inspections. Contractor shall obtain and shall pay for all construction permits and licenses.

G. Taxes. Contractor shall pay all sales, consumer, use and other similar taxes required to be paid by Contractor.

H. Use of Premises. Contractor shall confine construction equipment, the storage of materials and equipment and the operations of workers to the Property.

I. Record Documents. Contractor shall maintain in a safe place at the Property one record copy of all drawings, specifications, addenda, written amendments, Change Orders, and the like.

J. Safety. Contractor shall be responsible for initiating, maintaining and supervising all safety precautions and programs in connection with the Work.

K. Continuing the Work. Contractor shall carry on the Work and adhere to the progress schedule during all disputes or disagreements with Owner.

L. Damage to the Work. Contractor shall repair or replace, at Contractor's sole expense, every portion of the Work that is damaged or destroyed prior to Final Completion.

M. Warranty. Contractor warrants and guarantees to Owner that all Work will be in accordance with the Contract Documents and will not be defective.

N. Indemnity and Hold Harmless. Contractor shall indemnify and hold harmless Owner against all loss, liability, cost expense, damage and economic detriment of any kind whatsoever.

O. Related Work at Property. Owner may perform other work at the Property which is not part of the Work.

10. Insurance

A. Contractor’s Insurance

Contractor shall purchase and maintain such comprehensive general liability and other insurance as is appropriate for the Work being performed and furnished with limits and features as follows:

Before any Work is started, Contractor shall deliver to Owner certificates and other evidence of insurance requested.

B. Owner's Insurance. Owner shall be responsible for purchasing and maintaining Owner's liability insurance and other reasonably appropriate insurance.

11. Termination

A. Termination by Owner. If the Contractor breaches any of its obligations under this Agreement, then Owner may give Contractor written notification identifying such breach.

B. Termination by Contractor. If the Owner breaches any of its obligations under this Agreement, then Contractor may give Owner written notification identifying such breach.

12. Severability

The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision.

13. 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 shall not be construed as waiving such terms and conditions.

14. Governing Law

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

15. 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.

16. Attorney’s Fees

In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party shall pay the successful party a reasonable sum for attorney fees.

17. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto.

18. Entire Agreement

This Agreement shall constitute the entire agreement between the parties.

19. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party shall be binding only if placed in writing and signed by each party.

20. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred without prior written consent.

21. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

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

Attach Exhibits