Can I sign this contract electronically?

Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. §7001) and state law such as UETA, where adopted. Ensure intent to sign, consent to electronic records, attribution to signer, and reliable record retention for validity.

Is notarization required for enforceability?

Not always. Notarization is often required for recordation or certain acknowledgments, but many contracts are enforceable without notarization. Check local filing or conveyancing rules when title transfer or recording is anticipated.

Who must sign the contract for it to bind a company?

An authorized officer or agent must sign. Verify signing authority in corporate resolutions or organizational documents to avoid later challenges to enforceability.

How should change orders be handled?

Require written change orders signed by authorized parties that state scope, cost, and schedule impacts. Verbal approvals should be avoided or confirmed in writing promptly.

What if a payment is late?

Late payment remedies depend on the contract: interest, lien rights, stop-work, or acceleration. Follow notice and cure procedures in the contract before exercising remedies.

How long should I retain the signed contract?

Retain originals for the contract term plus a recommended minimum of 3 years; follow federal and industry-specific rules such as IRS (IRC §6501(a)) and HIPAA (45 CFR §164.530(j)).

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Building and Construction Contract

Building and Construction Contract

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What a Building and Construction Contract Covers

A Building and Construction Contract is a written agreement that sets out the rights, obligations, and expectations between the property owner and contractor for a specific construction project. It defines parties, the scope of work, deliverables, schedule, price and payment terms, change-order procedures, insurance and bond requirements, warranty terms, and dispute-resolution clauses. The contract also allocates risk related to permits, inspections, site conditions, and subcontractors. In the United States these agreements are governed by state contract law and can be executed electronically when statutory requirements are met.

Why a Clear Contract Matters for Construction Projects

A precise contract reduces disputes, protects lien rights, clarifies payment triggers, and documents acceptance criteria and warranties to limit downstream cost and schedule risk.

Who Typically Prepares and Signs These Contracts

Several parties rely on a Building and Construction Contract to manage responsibilities, budgets, and legal exposure on a project.

Property owners and developers who fund and define project objectives and require schedule and payment protections.
General contractors who coordinate trades, schedule work, and manage subcontractor performance and compliance.
Subcontractors and suppliers who use contract terms to secure payment, define scope, and preserve lien rights.

Each party should review role-specific clauses such as payment schedule, indemnity, insurance, change orders, and termination provisions before signing.

Core Sections to Include in a Professional Contract

A thorough Building and Construction Contract groups essential terms into discrete sections so responsibilities and remedies are clear for all stakeholders.

Parties & Scope

Identify full legal names and define work in measurable detail, including plans, specifications, and allowable substitutions to avoid ambiguity.

Price & Payment

State contract price or pricing method, payment schedule, retention/retainage, conditions for draw releases, and procedures for disputed invoices.

Schedule & Milestones

Include start date, phased milestones, substantial and final completion definitions, liquidated damages or incentives, and weather-related adjustments.

Change Orders

Describe the written change-order process, authorization thresholds, pricing approach for extras or deductions, and time-impact assessment procedure.

Insurance & Bonds

List required insurance types, policy limits, naming of additional insureds, and performance/payment bond requirements when applicable.

Termination & Disputes

Specify termination for cause or convenience, cure periods, dispute-resolution path (mediation/arbitration), and allocation of attorney fees when allowed.

Essential Data Fields to Include

Full Legal Names: Exact legal entity names.

Contractor License: License number and issuing state.

Scope of Work: Concise scope summary.

Contract Price: Total or formula amount.

Payment Schedule: Milestones and retention.

Insurance Details: Policy types and limits.

Common Penalties and Legal Risks

Late Payment: Interest charges and liens.

Mechanic’s Lien: Loss of priority or foreclosure risk.

Stop-Work Notices: Project delays and extra costs.

Unenforceable Clauses: Invalid indemnities or vague warranties.

Regulatory Fines: Permit or code violations.

Breach Claims: Damages and litigation costs.

Frequent Preparation Errors to Avoid

Vague scope descriptions that lead to change-order disputes and differing expectations among trades and owners.
Omitting permit or code responsibilities, which shifts unexpected compliance costs or halt-work exposures to the wrong party.
Unclear payment triggers or retainage calculations that create payment disputes and cashflow interruptions for subcontractors.
No defined change-order approval flow, causing work to proceed without authorization and increasing exposure to nonpayment.

Step-by-Step: Completing a Building and Construction Contract

Follow these sequential steps to assemble a clear, enforceable contract tailored to your project and parties.

01

Gather Documents: Collect plans, specs, permits, and contractor license information.
02

Define Scope: Write measurable deliverables, excluded work, and acceptance criteria.
03

Set Payment Terms: Specify amounts, milestone dates, retainage, and lien waivers.
04

Execute Signatures: Have authorized signers sign and distribute executed copies.

Where to Send and File the Executed Contract

After signatures, distribute copies to key project stakeholders and retain a certified copy for compliance and claims support.

Owner / Developer: Provide an original or certified electronic copy for project records.
General Contractor: Upload to project management and share with on-site personnel and subs.
Lender / Insurer: Send to any lender or insurer requiring contract review or proof of coverage.
Permit Office: Submit required project documents with permit applications where local rules require.

Files and Formats to Keep After Signing

Retain accessible copies in common formats and include supporting documentation that evidences approvals, inspections, and compliance.

Signed Contract

Save a PDF/A copy with signature audit trail and timestamp for long-term accessibility and admissibility.

Supporting Documents

Include permits, insurance certificates, bonds, subcontracts, and approved change orders as appended exhibits.

Notary Records

If notarized, keep the notary acknowledgment or RON session record per state retention rules.

Project Logs

Preserve daily logs, inspection reports, and payment receipts tied to contract milestones.

Practical Tips for Accurate and Efficient Completion

Use consistent naming, attach exhibits, and confirm authorization to sign to reduce later disputes and delays.

Use Exact Legal Names

Enter entity names as shown on formation or registration documents to avoid enforceability or payment issues.

Attach Clear Exhibits

Include plans, specs, and schedules as numbered exhibits and reference them specifically in the scope and deliverables.

Define Acceptance

Set objective acceptance tests, inspection windows, and procedures for remedying deficient work.

Preserve Audit Trails

Keep electronic signing audit logs, version history, and any consent disclosures to support contractual validity.

Timelines, Deadlines, and Typical Processing Expectations

Key dates and response windows reduce ambiguity — specify them clearly and indicate who is responsible for each deadline.

Project Start Date:

Date work must commence per contract.

Substantial Completion:

Milestone when owner can use the work for its intended purpose.

Final Completion:

When all punch-list items are resolved and final payment becomes due.

Payment Due Dates:

Dates for draws, retainage release, and final payment.

Change Order Response:

Contractor response timeframe for proposed changes.

How This Contract Compares with Related Construction Documents

Compare common document types to clarify when each is appropriate and who typically signs them.

Document Type	Primary Purpose	Typical Parties
Building and Construction Contract	comprehensive project terms	owner	general contractor
Subcontractor Agreement	trade-specific scope and pay	general contractor	subcontractor
Change Order	amend scope or cost mid-project	owner	contractor
Purchase Order	buy materials or goods	buyer	supplier

eSignature Vendors: Pricing and Core Availability for Contract Signing

Basic pricing and feature availability help compare common eSignature providers for executing Building and Construction Contracts; signNow is listed first per vendor comparison rules.

	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 trial	Varies	Varies	Varies	Varies
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No cap	100 env/user/year	Varies	Varies	Varies

Frequently Asked Questions about Building and Construction Contracts

Answers to common questions about signing, notarization, signatures, and recordkeeping for construction contracts.

Need help? Contact support

Can I sign this contract electronically?
Yes. Electronic signatures are enforceable under the federal ESIGN Act (15 U.S.C. §7001) and state law such as UETA, where adopted. Ensure intent to sign, consent to electronic records, attribution to signer, and reliable record retention for validity.
Is notarization required for enforceability?
Not always. Notarization is often required for recordation or certain acknowledgments, but many contracts are enforceable without notarization. Check local filing or conveyancing rules when title transfer or recording is anticipated.
Who must sign the contract for it to bind a company?
An authorized officer or agent must sign. Verify signing authority in corporate resolutions or organizational documents to avoid later challenges to enforceability.
How should change orders be handled?
Require written change orders signed by authorized parties that state scope, cost, and schedule impacts. Verbal approvals should be avoided or confirmed in writing promptly.
What if a payment is late?
Late payment remedies depend on the contract: interest, lien rights, stop-work, or acceleration. Follow notice and cure procedures in the contract before exercising remedies.
How long should I retain the signed contract?
Retain originals for the contract term plus a recommended minimum of 3 years; follow federal and industry-specific rules such as IRS (IRC §6501(a)) and HIPAA (45 CFR §164.530(j)).

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