Can a builder contract be signed electronically?

Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states if the transaction shows intent to sign, consent to electronic records, attribution to the signer, and a retained reproducible record.

Do I need a notary or witnesses?

Not typically for ordinary construction contracts, but specific jurisdictions or lenders may require notarization for certain exhibits or affidavits; confirm local requirements before execution.

How should change orders be documented?

Require written change orders signed by authorized parties that reference the original contract, specify scope and price adjustments, and set any revised schedule or warranty effects.

Who should sign the agreement for a company?

An individual with corporate authority—an officer or an authorized agent—should sign and include printed name and title to ensure enforceability and to demonstrate binding authority.

How do I cancel or revoke a signed contract?

Revocation requires agreement by all parties or termination under a contract clause; unilateral revocation after execution is generally not effective without statutory grounds or mutual consent.

How should signed contracts be stored?

Store signed PDFs and an audit trail in a secure, access-controlled repository with backups. Retain originals per retention guidelines and for lien, tax, or warranty claims.

Electronic Signature
Templates
Real estate
Builder Contract Agreement

Builder Contract Agreement

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BUILDER CONTRACT AGREEMENT

Parties and Property

This Builder Contract Agreement (the Agreement) is entered into by Owner: and Builder: for the property located at . Parcel / APN: .

Legal Description

Scope of Work

Builder shall furnish all labor, materials, equipment and supervision necessary to complete the work described in the Contract Documents, which include plans, specifications and this Agreement. The scope of work includes, without limitation, the following summary:

Scope Summary

Contract Price and Payments

Owner agrees to pay Builder the Contract Price as follows.

Contract Price (Total) Initial Deposit / Down Payment Deposit Due Date Payment Schedule and Milestones

Retainage, if any, will be withheld as follows: . Final payment will be due upon final completion and submission of required lien waivers and release documentation.

Time, Commencement and Completion

Work shall commence no later than and Builder shall achieve substantial completion by . Final completion / possession date: .

Construction Schedule / Milestones

Permits, Inspections and Compliance

Builder shall obtain and pay for all permits, inspections, and licenses required for performance of the Work and shall comply with all applicable laws, codes and ordinances. Builder will notify Owner of any required municipal inspections prior to final payment.

Builder responsible for permits: Yes

Change Orders and Extra Work

All changes to the Scope of Work or Contract Price shall be made only by a written Change Order signed by both Owner and Builder. Change Orders shall specify any adjustments to price, time for performance, and any other affected terms.

Change Order Authorization Procedure

Warranties

Builder warrants that all workmanship and materials furnished under this Agreement shall be free from defects for a period of months from the date of final completion, except for manufacturers' warranties that may extend longer.

Additional Warranty Terms

Liens, Releases and Payment of Subcontractors

Builder shall promptly pay all subcontractors and suppliers and shall keep the Property free of liens. Builder shall furnish conditional and final lien waivers, releases and affidavits as a condition to progress and final payments.

Builder will provide lien waivers upon payment: Yes

Insurance and Indemnity

Builder shall maintain commercial general liability insurance with limits not less than per occurrence, and workers' compensation as required by law. Builder shall name Owner as an additional insured on policies applicable to the Work and shall deliver certificates of insurance prior to commencement.

Builder indemnifies and holds Owner harmless from claims arising out of Builder's performance except to the extent caused by Owner's negligence or willful misconduct.

Disclosures

Lead-based paint (if property built before 1978): Property built before 1978: Yes No

Known material defects, prior structural damage or mold: Yes No

If yes, describe

Default, Remedies and Termination

If either party materially breaches this Agreement, the non-breaching party shall provide written notice and the breaching party shall have days to cure. If not cured, the non-breaching party may pursue available remedies including termination, damages and specific performance where appropriate.

Dispute Resolution

The parties agree to good-faith negotiation. If unresolved, disputes shall be resolved by: Mediation Binding Arbitration Court Litigation

Governing law: .

Notices

All notices under this Agreement shall be in writing and delivered to the addresses below by certified mail, courier, or hand delivery and shall be effective upon receipt.

Owner Contact Information Builder Contact Information

Miscellaneous

Entire Agreement: This Agreement, including all attachments, exhibits and written Change Orders, constitutes the entire agreement between the parties and supersedes prior negotiations and agreements. No amendment shall be effective unless in writing and signed by both parties.

Attachments and Exhibits (plans, specifications, schedule)

Owner:

By:

Date:

Builder:

By:

Date:

What a Builder Contract Agreement Is and when it’s used

A Builder Contract Agreement is a written contract that sets the rights and obligations between an owner (or developer) and a builder or general contractor for construction work at a specified site. It describes the scope of work, payment terms, schedule, change-order procedures, insurance and licensing requirements, and dispute resolution. The agreement creates a clear allocation of risk for construction projects of any size and is commonly used for residential builds, renovations, and commercial construction to document expectations before work begins.

Why a clear Builder Contract Agreement matters

A complete agreement reduces disputes, clarifies payment timing and responsibilities, and supports enforcement of mechanic’s liens or claims. Electronically signed Builder Contract Agreements are enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted, provided the signature meets intent, consent, attribution, and retention requirements.

Who typically prepares, signs, and relies on this agreement

Multiple parties prepare and depend on builder contracts to manage project scope, payment, and legal risk.

General contractors — Prepare contract templates, confirm subcontractor flow-down obligations, and manage payments.
Owners and developers — Use the agreement to define deliverables, milestones, retainage, and acceptance criteria.
Subcontractors and suppliers — Rely on contract terms and payment clauses; enforce priorities such as lien rights.

Signed contracts serve as primary evidence in disputes, lien actions, and insurance or lender reviews.

Essential sections to include in a professional Builder Contract Agreement

A robust builder contract organizes the project into clear legal sections so parties know deliverables, timing, and remedies without ambiguity.

Scope of Work

Detailed description of tasks, materials, standards, and deliverables; attach plans or specifications as exhibits to avoid ambiguity.

Price & Payments

Contract price, payment schedule, retainage, progress draws, invoice procedures, and conditions for final payment and release of liens.

Schedule

Start and completion dates, milestones, calendar or business-day definitions, and remedies for excusable vs. nonexcusable delays.

Change Orders

Process for written change orders, pricing adjustments, approvals required, and time extensions to prevent scope creep.

Warranties & Liens

Express warranties for workmanship and materials, lien waiver requirements, bond or insurance obligations, and indemnity clauses.

Termination & Disputes

Termination rights, cure periods, dispute resolution method (mediation/arbitration/ litigation), and governing law selection.

Core information and document identifiers to include

Contractor Name: Legal business name

Owner Name: Legal owner or developer

Project Address: Street, city, state, ZIP

Contract Price: Firm sum or allowance

Project Dates: Start and completion

License & Insurance: License number; policy limits

Step-by-step: completing a Builder Contract Agreement

Follow these steps to prepare, review, and finalize a enforceable builder contract for a typical construction project.

01

Gather Documents: Collect plans, specs, permits, insurance certificates, and license numbers.
02

Populate Contract: Fill required fields, scope, price, schedule, and exhibits consistently.
03

Review Legal Terms: Confirm change-order and dispute provisions with counsel where needed.
04

Sign and Distribute: Have authorized signers execute and distribute copies to all parties.

Customizing and automating the contract workflow online

Configure online signing workflows to match your operational needs: who signs first, authentication level, and storage location.

Field	Configuration
Authentication	Email link, SMS code, or multi-factor
Conditional Fields	Show change-order or lien waiver fields only when selected
Template Reuse	Save standard contract templates for new projects
Integrations	Connect to project systems and cloud storage

Where to send and who should receive the executed agreement

After execution, distribute signed copies to parties and maintain a project file for compliance, permitting, and payment workflows.

Owner / Developer: Keeps original and authorizes payments.
General Contractor: Maintains operational copy and issues change orders.
Subcontractors / Suppliers: Receive relevant flow-down clauses and waivers.
Project File / Permits: Store copies with permit records and lender documents.

Distribution methods and platform requirements

Choose methods that preserve the signing record and meet contract or lender requirements.

Email / Secure Link: Fast distribution; preserves timestamp and audit trail
Cloud Storage: Archive copies in Google Drive, Box, or project repository
Project Management: Integrate with Procore or NetSuite for single-source project records

Preserve signed PDFs and audit trails for disputes, lien rights, insurer reviews, and lender diligence.

Common contract dates and payment milestones to track

Track these dates precisely; missed deadlines can trigger delay damages, payment disputes, or breaches of contract.

Effective Date:

Date contract obligations begin and warranty periods commence.

Mobilization Date:

Start date for onsite work and resource allocation.

Substantial Completion:

Milestone for partial acceptance and release of retainage.

Final Completion:

Completion of punch-list items and final payment eligibility.

Payment Due Dates:

Specific invoice due dates and retainage release schedule.

Common preparation mistakes to avoid

Vague scope descriptions that leave room for differing expectations and change-order disputes.
Missing permit and licensing details that delay work and can void insurance coverage.
Unclear payment timing or retainage percentages that prompt nonpayment or financing holds.
Absent or improperly worded lien waiver and notice procedures that weaken lien enforcement.

Risks and legal consequences of an incomplete or incorrect contract

Payment Disputes: Delays, withheld payments, or costly collections

Mechanic’s Liens: Possible liens, lien defenses, and foreclosure risk

Permit Violations: Stop-work orders and local fines

Insurance Gaps: Claims denied for noncompliant coverage

Contract Ambiguity: Arbitration or litigation costs

Subcontractor Claims: Payment bond claims or contractor insolvency exposure

eSignature vendor comparison for executing Builder Contract Agreements

Basic vendor features and starting prices for electronic signature services used to sign construction contracts; signNow is listed first per table conventions.

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

Frequently asked questions about Builder Contract Agreements

Answers to common legal and process questions when preparing, signing, and storing builder contracts.

Need help? Contact support

Can a builder contract be signed electronically?
Yes. Electronic signatures are generally enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states if the transaction shows intent to sign, consent to electronic records, attribution to the signer, and a retained reproducible record.
Do I need a notary or witnesses?
Not typically for ordinary construction contracts, but specific jurisdictions or lenders may require notarization for certain exhibits or affidavits; confirm local requirements before execution.
How should change orders be documented?
Require written change orders signed by authorized parties that reference the original contract, specify scope and price adjustments, and set any revised schedule or warranty effects.
Who should sign the agreement for a company?
An individual with corporate authority—an officer or an authorized agent—should sign and include printed name and title to ensure enforceability and to demonstrate binding authority.
How do I cancel or revoke a signed contract?
Revocation requires agreement by all parties or termination under a contract clause; unilateral revocation after execution is generally not effective without statutory grounds or mutual consent.
How should signed contracts be stored?
Store signed PDFs and an audit trail in a secure, access-controlled repository with backups. Retain originals per retention guidelines and for lien, tax, or warranty claims.

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