Can this agreement be e-signed?

Yes. Under the ESIGN Act and UETA, electronically signed construction contracts are legally enforceable provided intent, consent, attribution, and reliable record retention are documented.

Is notarization required?

Generally contracts do not require notarization to be valid, but certain filings or lender conditions may require notarized acknowledgements or recorded instruments in specific jurisdictions.

How do I avoid lien disputes?

Use clear payment schedules, obtain waivers conditional on payment, track change orders, and preserve notices and invoice documentation to support or defend against mechanic’s lien claims.

What if a signer lacks authority?

Confirm corporate signatory authority through corporate resolutions or power of attorney prior to signing; unauthorized signatures can render an agreement voidable.

How long should I keep the agreement?

Retain the executed agreement through the active term plus recommended post-termination periods: generally 3 years minimum for tax records and up to 7 years for contract disputes.

Can remote online notarization be used?

RON is permitted in most states with identity proofing and recording requirements; verify state notary rules before relying on remote notarization for critical filings.

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Builder Agreement Document

Builder Agreement Document

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

BUILDER AGREEMENT DOCUMENT

This Builder Agreement (the "Agreement") is entered into by and between:

Client Name: Client Address:

Builder Name: Builder Address:

Effective Date: Project Location:

RECITALS

WHEREAS, Client requires construction, remodeling, or related building services for the Project Location described above; and

WHEREAS, Builder represents that it is duly licensed, experienced, and qualified to perform the scope of work described in this Agreement and will perform such work in a professional, workmanlike manner and in compliance with all applicable laws, codes, and regulations; and

WHEREAS, the parties desire to set forth the terms and conditions under which Builder will perform the work and Client will compensate Builder.

SCOPE OF WORK

Builder shall provide all labor, materials, equipment, supervision, permits, and services necessary to complete the work described below (the "Work"). The Work shall conform to the project drawings, specifications, and any written change orders approved in accordance with this Agreement.

Detailed Scope of Work

PAYMENT TERMS

Total Contract Price: $ Currency:

Payment Schedule

Deposit Amount: $ Retainage:

Late Payment Fee: Interest at or the maximum permitted by law, whichever is less. Client agrees to pay all collection costs, including reasonable attorney fees, if payments are not made when due.

TERM AND TERMINATION

Commencement Date: Estimated Completion Date:

Either party may terminate this Agreement for cause if the other party materially breaches any provision and fails to cure such breach within days after written notice. Client may terminate for convenience upon days' prior written notice; in such event Builder shall be paid for Work performed and any non-cancellable obligations incurred prior to termination.

CONFIDENTIALITY

Each party agrees that it shall keep confidential and shall not disclose to any third party any confidential or proprietary information of the other party disclosed in connection with the Work, except as required by law or court order. Confidential information shall not include information that is or becomes publicly known through no wrongful act of the receiving party, or information independently developed by the receiving party without use of the disclosing party's confidential information. The obligations of confidentiality shall survive termination of this Agreement for a period of years.

CHANGE ORDERS

Any additions, deletions, or modifications to the Scope of Work shall be made only by written change order signed by both parties, specifying any adjustment to the Contract Price and any extension of the schedule. Verbal change orders shall have no force or effect.

INSURANCE, PERMITS, AND COMPLIANCE

Builder shall obtain and maintain, at Builder's expense, commercial general liability insurance, workers' compensation insurance, and any other insurance required by law or reasonably necessary for the performance of the Work. Builder shall secure and pay for all permits, inspections, and approvals required by applicable authorities and shall comply with all applicable laws, codes, and regulations.

WARRANTIES AND REPRESENTATIONS

Builder warrants that the Work will be free from defects in workmanship for a period of months from substantial completion. This express warranty is in addition to any statutory warranties and does not limit remedies available under applicable law.

INDEMNIFICATION AND LIENS

Builder shall indemnify, defend, and hold Client harmless from and against any claims, liabilities, losses, and expenses arising out of Builder's performance of the Work, including claims by Builder's employees, subcontractors, or suppliers, except to the extent caused by Client's negligence or willful misconduct. Builder shall pay and discharge all lawful claims for labor and materials and shall not allow liens to be filed against the Project Location; if liens are filed, Builder shall promptly cause them to be bonded or otherwise released at Builder's expense.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles. Venue for any dispute arising under this Agreement shall lie in the state or federal courts located within that state.

ENTIRE AGREEMENT

This Agreement, including any exhibits, drawings, and written change orders signed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, and agreements, whether written or oral. Any amendment to this Agreement must be in writing and signed by both parties.

ADDITIONAL PROVISIONS

Severability: If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Notices: All notices required under this Agreement shall be in writing and delivered to the addresses set forth above or such other address as a party may designate in writing.

Client

Printed Name:

By:

Date:

Builder

Printed Name:

By:

Date:

What the Builder Agreement Document Is and When It’s Used

A Builder Agreement Document is a written contract that sets the terms between a property owner and a builder or general contractor for construction, renovation, or related services. It defines parties, scope of work, schedule, payment terms, change order procedures, warranties, insurance and dispute resolution. The document serves as the primary reference for performance expectations, liability allocation and payment enforcement during the project lifecycle. Properly completed agreements reduce ambiguity, support lien and payment remedies, and form the basis for permits, inspections, and subcontractor coordination.

Legal Foundation and Enforceability of Builder Agreements

Builder agreements are binding contracts when signed with intent, consent to the electronic process where applicable, clear attribution to the signer, and reliable record retention. Federal law under the ESIGN Act (15 U.S.C. ch. 96) and state rule through UETA (1999) validate electronic signatures for commercial contracts, subject to narrow statutory exceptions like wills and certain court orders.

Who Typically Completes a Builder Agreement Document

Builders, general contractors, project owners, and construction managers are the primary users of builder agreements; attorneys and lenders often review or require them.

General contractors and builders who manage project delivery and subcontractor relationships for commercial or residential work.
Property owners or developers who need to define scope, schedule, and payment security before construction begins.
Subcontractors and suppliers who rely on contract terms for payment, lien rights, and performance obligations.

Use the document whenever work, payment terms, permits, or project risk allocation must be formalized in writing.

Essential Sections to Include in a Professional Builder Agreement Document

A complete builder agreement organizes obligations, commercial terms, and practical procedures so parties and third parties can act on the contract without ambiguity.

Parties

Identify full legal names and roles of owner, builder, and any authorized representatives, including business entity types and contact information for notices and billing.

Scope of Work

Describe work precisely with references to drawings, specifications, and contract exhibits; include deliverables, material standards, and allowances to avoid disputes over omitted items.

Schedule

Set start and completion dates, milestone deadlines, liquidated damages for delays if applicable, and procedures for time extensions due to unforeseen conditions.

Payment Terms

Specify contract sum, payment schedule, progress draws, retainage percentage, lien waiver requirements, conditions for final payment, and remedies for nonpayment.

Change Orders

Provide a written change order process requiring documented scope modifications, price adjustments, and authorized sign-offs before additional work proceeds.

Insurance & Warranties

List required insurance types and limits, indemnity obligations, warranty periods, and who is responsible for defects during warranty and correction periods.

Step-by-Step: How to Complete the Builder Agreement

Follow these steps in sequence to prepare a valid, enforceable builder agreement and reduce post-signature disputes.

01

Prepare Documents: Gather plans, specs, permits, and insurance certificates before drafting.
02

Fill Core Fields: Enter parties, project address, effective date, and contract price accurately.
03

Review Terms: Confirm payment schedule, change order process, and dispute resolution language.
04

Sign and Distribute: Obtain signatures from authorized signers and circulate executed copies to stakeholders.

Where to Send or File the Completed Agreement

Routing depends on whether the agreement needs recording, lender acceptance, or subcontractor distribution.

Owner File: Provide the owner with an executed original for project records.
Builder File: Retain a signed copy in the builder’s project folder and accounting system.
Lender or Title: Send copies to the lender or title company when required for financing or closing.
Subcontractors: Distribute relevant exhibits and scope sections to subcontractors for alignment.

Configuring a Digital Workflow for the Builder Agreement

Set up a repeatable online workflow to collect signatures, verify identity, and store executed documents securely.

Field	Configuration
Authentication	Use email plus SMS code or advanced signer verification for higher-assurance signings.
Routing Order	Define signer sequence: owner first, builder second, lender as final reviewer if needed.
Templates	Create a template with conditional fields for typical project types to save time.
Notifications	Enable automated reminders and an audit trail for completed tasks.

Digital Signing and Platform Considerations

Choose platforms that support secure eSigning, audit trails, and integrations with your project systems.

File Formats: Support for PDF and DOCX is necessary for contract exhibits and redlines.
Integrations: Integrate with systems like NetSuite, Procore, or Microsoft 365 for recordkeeping.
Compliance: Verify HIPAA or 21 CFR Part 11 needs only when regulated data is present.

Ensure the chosen platform provides tamper-evident records, timestamps, and a clear certificate of completion for each signed agreement.

Key Dates to Note in the Builder Agreement

Record and monitor critical contract dates to trigger payments, inspections, warranty obligations, and lien deadlines.

Effective Date:

The date obligations and timelines begin; enter as MM/DD/YYYY.

Start of Work:

Project mobilization or first site activity date.

Completion Date:

Substantial completion milestone that affects final payment release.

Payment Due Dates:

Dates for progress draws, retainage release, and final settlement.

Warranty Period:

Start and end dates for warranty claims and defect corrections.

Milestone Timeline for Agreement Execution and Project Start

A sequential milestone view helps synchronize permitting, mobilization and the first payment.

01

Agreement Signed

All parties execute the contract and exchange signed copies.

02

Permits Obtained

Required permits and inspections are secured prior to mobilization.

03

Mobilization Begins

Crew deployment and site setup commence on the agreed start date.

04

First Progress Payment

Initial draw issued based on completed mobilization milestones.

How a Builder Agreement Differs from a Subcontractor Agreement

Compare common contract elements to determine which form fits a given relationship and scope.

Criteria	Builder Agreement	Subcontractor Agreement
Primary Parties	owner and builder	builder and subcontractor
Scope Focus	entire project scope	specific trade scope
Payment Structure	owner payments to builder	payments from builder to trade
Lien Rights	owner protections and lien remedies	subcontractor lien provisions

Required Information and Key Fields to Include

Party Names: Full legal names.

Project Location: Street, city, state, ZIP.

Contract Price: Exact dollar amount.

Payment Terms: Schedule and retainage.

Insurance Details: Policy types and limits.

Signature Blocks: Signer name, title, date.

Common Preparation Errors to Avoid

Using vague scope language that leaves material items unspecified and leads to claims and change order disputes.
Failing to align payment schedules and lien waiver timing, causing release disputes and refusal of progress payments.
Omitting authorized signatory details or corporate resolutions which can render signatures ineffective for binding the entity.
Neglecting to list insurance certificate requirements and limits that lenders or owners may require for acceptance.

Risks and Consequences of an Incorrect or Incomplete Agreement

Payment Delay: Cash flow interruption, stop-work risk.

Mechanic’s Lien: Lien filing may be required to secure payment.

Invalid Signature: Contract may be unenforceable.

Insurance Gaps: Uninsured exposures and losses.

Change Order Disputes: Cost overruns and litigation.

Regulatory Noncompliance: Permit delays or fines.

Electronic Signature Versus Handwritten Execution for Builder Agreements

Compare practical differences to determine whether to accept eSignatures or require in-person notarization for your agreement.

Method	Electronic Signature	Handwritten Signature
Legal Validity	valid under esign/ueta	universally valid
Audit Trail	yes, digital audit trail	limited to witness/notary records
Remote Notarization	available with ron where allowed	requires in-person notary
Record Storage	easily archived and searchable	paper storage required

eSignature Vendor Pricing and Feature Snapshot for Builder Agreements

Compare typical starting prices and core features for electronic signature providers commonly used to execute construction and contract documents.

	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	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Business Premium+)	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes (BAA required)	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions About the Builder Agreement Document

Answers to common execution, signing, and retention questions to help avoid procedural errors and downstream disputes.

Need help? Contact support

Can this agreement be e-signed?
Yes. Under the ESIGN Act and UETA, electronically signed construction contracts are legally enforceable provided intent, consent, attribution, and reliable record retention are documented.
Is notarization required?
Generally contracts do not require notarization to be valid, but certain filings or lender conditions may require notarized acknowledgements or recorded instruments in specific jurisdictions.
How do I avoid lien disputes?
Use clear payment schedules, obtain waivers conditional on payment, track change orders, and preserve notices and invoice documentation to support or defend against mechanic’s lien claims.
What if a signer lacks authority?
Confirm corporate signatory authority through corporate resolutions or power of attorney prior to signing; unauthorized signatures can render an agreement voidable.
How long should I keep the agreement?
Retain the executed agreement through the active term plus recommended post-termination periods: generally 3 years minimum for tax records and up to 7 years for contract disputes.
Can remote online notarization be used?
RON is permitted in most states with identity proofing and recording requirements; verify state notary rules before relying on remote notarization for critical filings.

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