Are electronic signatures legally binding?

Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes, electronic signatures are generally legally equivalent to handwritten signatures when intent, consent, attribution, and record retention are satisfied.

Do building contracts require notarization?

Not typically. Most construction contracts do not require notarization, but notarizing or witnessing can strengthen evidence of execution in some jurisdictions or for specific instruments tied to real property.

Who must sign the contract for it to be valid?

An authorized representative with legal authority to bind the party must sign. Verify authority via corporate resolution or officer title to avoid challenges to enforceability.

Can I use remote online notarization (RON)?

RON is permitted in many states with specific identity-proofing and recordkeeping requirements; verify state RON rules and notary obligations before relying on a remote notarization.

How long should I keep executed contracts?

Retain contracts for the active term plus applicable post-termination periods; federal guidance includes IRS records for 3 years (IRC §6501(a)) and HIPAA records for 6 years where applicable (45 CFR §164.530(j)).

What if a signature is missing or incorrect?

Missing or incorrect signatures can raise enforceability issues. Remedy with a ratification, re-execution, or an amendment signed by the correct authorized parties to preserve contract validity.

Electronic Signature
Templates
Miscellaneous
Building Contract Template

Building Contract Template

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

BUILDING CONTRACT AGREEMENT

This Building Contract ("Contract") is made effective as of by and between:

Parties

Owner Name Owner Address Contractor Name Contractor Address Contractor License Number

Recitals

WHEREAS, Owner engages Contractor to perform construction, renovation and related services at the property located at (the "Project"); and

WHEREAS, Contractor represents that it possesses the experience, personnel, equipment and licenses required to perform the Work described in this Contract in a timely and workmanlike manner; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the performance, inspection, payment and completion for the Project under the terms and conditions set forth below.

Scope of Work

Contractor shall furnish all labor, materials, equipment, supervision and services necessary to perform and complete the work described below (the "Work") in accordance with the Contract Documents. The scope includes, without limitation, the items described in the Scope of Work field and any attachments that are expressly incorporated by reference.

Detailed Scope of Work

Change Orders

Any addition to or deviation from the Scope of Work shall be made only by written Change Order signed by both parties. A Change Order shall describe the change, any adjustment to the Contract Price, and any change to the schedule. No oral modification shall be binding, and Contractor shall not be obligated to proceed with any changed work until a Change Order is executed.

Change Order Procedure / Limits

Payment Terms

Owner shall pay Contractor the Contract Price for satisfactory performance of the Work in accordance with this Contract. Payments shall be made in United States dollars and without setoff or deduction except as expressly provided herein.

Contract Price Deposit / Initial Payment Payment Schedule / Milestones

Retainage Percentage

Invoice Cycle (days)

Late Fee

Invoices shall include itemization of labor, materials and approved Change Orders. Owner shall pay undisputed amounts within the stated invoice cycle. Disputed amounts shall be identified in writing and, except for amounts reasonably disputed, payment shall not be withheld to the extent such withholdings would unreasonably delay performance.

Term and Termination

The Work shall commence on or about and substantial completion shall occur on or before , subject to extensions for excusable delays.

Either party may terminate for material breach if the breaching party fails to cure within days after receipt of written notice specifying the breach. Owner may terminate for convenience upon written notice; in such event Contractor shall be entitled to payment for Work performed and reasonable demobilization costs as set forth herein.

Permits, Compliance and Site Conditions

Contractor shall obtain and pay for permits, inspections and approvals required by law unless otherwise agreed in writing. Contractor shall perform the Work in compliance with applicable codes, ordinances and regulations, and shall promptly notify Owner of any site conditions that materially differ from representations made to Contractor.

Contractor Responsible for Permits? Contractor to obtain permits and approvals (check if yes)

Insurance, Indemnity and Risk Allocation

Contractor shall maintain general liability, workers' compensation and automobile liability insurance in amounts consistent with industry standards and shall name Owner as an additional insured on the general liability policy with respect to liability arising from Contractor's operations. Contractor shall indemnify, defend and hold Owner harmless from claims arising out of Contractor's negligent performance of the Work, except to the extent caused by Owner's negligence or willful misconduct.

Insurance and Indemnity Notes

Warranties

Contractor warrants that materials and workmanship furnished under this Contract will be free from defects for a period of months from the date of substantial completion, except for defects arising from normal wear and tear or Owner's misuse.

Confidentiality

Each party shall hold in confidence any proprietary or confidential information disclosed by the other party and shall not disclose such information to third parties except as required by law or as necessary to perform the Work. Confidential information does not include information that is or becomes publicly available through no fault of the receiving party or that was independently developed by the receiving party.

Confidentiality Exceptions / Special Provisions

Dispute Resolution; Governing Law

The parties shall attempt in good faith to resolve disputes arising under this Contract by negotiation. If negotiation fails, the parties shall submit the dispute to mediation, and if mediation is unsuccessful, to binding arbitration under the rules agreed by the parties. This Contract shall be governed by the laws of the State of without regard to choice of law principles.

Entire Agreement; Miscellaneous

This Contract, including all documents incorporated by reference, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings. No amendment shall be effective unless in writing and signed by both parties. If any provision is held invalid, the remainder shall continue in full force and effect.

Additional Terms / Special Provisions

Owner - Print Name:

By:

Date:

Contractor - Print Name:

By:

Date:

What a Building Contract Template Covers

A Building Contract Template is a standardized construction agreement outlining scope, price, schedule, parties, and responsibilities for a building project. It establishes performance milestones, change-order rules, payment terms, insurance and indemnity provisions, and dispute-resolution steps so both owner and contractor share a clear baseline for work delivery and risk allocation. Templates reduce drafting time by providing reusable clauses while allowing customization for project-specific exhibits such as plans, specifications, and payment schedules.

Why a Clear Template Matters for Construction Agreements

A professional Building Contract Template helps prevent disputes, clarifies payment triggers, and defines remedies for delays or defects, improving project predictability and risk management.

Who Typically Uses a Building Contract Template

Common users include owners, general contractors, specialty subcontractors, construction managers, and project liaisons who need a repeatable agreement for projects of varying scale.

Owners and developers who require clear deliverables, payment schedules, warranty obligations, and insurance coverage.
General contractors that need standardized scopes, change-order mechanics, and subcontract flow-down provisions.
Legal and project administrators who manage compliance, lien waivers, and procurement documentation.

Use the template as a starting point but tailor licensing, lien, or local permit clauses to state and project specifics before executing.

Core Sections to Include in a Building Contract Template

A complete template groups legal and operational items so each party understands expectations and remedies.

Scope of Work

Precise description of work, plans and specifications, and how changes are documented and approved.

Price & Payments

Contract sum, progress payment schedule, retainage, invoice procedures, and conditions for withholding or setoff.

Schedule & Milestones

Start date, substantial completion, liquidated damages for delay, and procedures for extensions.

Change Orders

Authority to approve changes, pricing method, time impacts, and documentation required for adjustments.

Insurance & Indemnity

Required coverages, certificate requirements, additional insured endorsements, and indemnity scope.

Dispute Resolution

Negotiation, mediation, arbitration or court venue, and allocation of attorneys' fees where applicable.

Essential Fields to Capture in the Template

Parties: Legal entity names

Contract Amount: Total sum and currency

Effective Date: Agreement start date

Scope Reference: Plans/spec exhibits

Payment Terms: Schedule and retainage

Signature Blocks: Authorized signer lines

Step-by-Step: Completing a Building Contract Template

Follow a structured sequence to reduce omissions and ensure the contract is enforceable and administrable.

01

1. Identify Parties: Confirm full legal names and signatory authority before drafting.
02

2. Define Scope: Attach plans and list excluded items to limit disputes.
03

3. Set Payment Terms: Establish schedule, retainage, and invoice requirements.
04

4. Sign and Exchange: Have authorized signers execute and keep copies for records.

Customizing the Template for Online Use

Configure an online workflow so each party receives, signs, and stores the executed contract with an audit trail.

Template	Create a reusable PDF or DOCX template with fixed exhibits.
Conditional Fields	Show or hide clauses based on project type or contract value.
Signer Authentication	Choose email link or stronger MFA/SMS for higher-risk projects.
Automated Reminders	Set email reminders for pending signatures and expiring proposals.
Integrations	Connect to project systems (CRM, Procore, NetSuite) for record synchronization.

Where to Send and File the Completed Contract

Distribute the executed contract to relevant stakeholders and keep a secure primary record for compliance and project management.

Owner: Retains original executed copy for project oversight.
Contractor: Keeps copy for scheduling, payment, and warranty administration.
Lender or Surety: Provide copies when financing or bonding depends on contract terms.
Permitting Authority: Attach to permit submissions if required by local jurisdiction.

Digital Signing and File Format Requirements

Use a platform that supports secure e-signatures, ISO-standard signed PDFs, and system integrations for project records.

File Formats: PDF, Word DOCX, and Excel supported for templates and exhibits.
Integrations: Common connectors include Salesforce, NetSuite, Procore, Microsoft 365, and Google Workspace.
Security Standards: TLS 1.2/1.3 and AES-256 encryption protect documents in transit and at rest.

Ensure the chosen provider supports audit trails, conditional fields, and appropriate signer authentication to meet contract and regulatory needs.

Practical Tips to Complete a Building Contract Efficiently

Apply consistent review steps and governance to avoid common oversights and speed execution.

Use a Master Template

Maintain a central template with approved clauses and variable exhibits. Standardization reduces review cycles while preserving negotiable points for counsel.

Annotate Exhibits

Number and label all drawings, specifications, and schedules. Cross-reference exhibit identifiers to avoid ambiguity in scope and payment triggers.

Confirm Signatory Authority

Verify each signer’s authority and include title lines to prevent challenges to validity after execution.

Preserve Audit Trail

Record signatures, timestamps, and version history for every electronic signing event to support enforceability and dispute resolution.

Common Mistakes to Avoid

Vague scope descriptions that invite scope creep and disputes.
Unclear payment milestones causing delayed or withheld payments.
Missing or incorrect signatory authority on execution pages.
Failing to attach key exhibits such as plans or schedules.

Key Risks and Consequences of an Improper Contract

Mechanic's Lien: Lien exposure

Payment Delays: Stop-work risk

License Violations: Fines, suspension

Warranty Gaps: Repair cost exposure

Dispute Costs: Arbitration or litigation

Invalid Signature: Enforceability issues

Typical Contract Dates and Deadlines to Track

Calendar the contract lifecycle with specific dates to avoid forfeiting rights or missing milestone-based payments.

Commencement Date:

Start of contractor obligations and schedule counting.

Substantial Completion:

Milestone for occupancy and reduction of retainage.

Final Completion:

Punch-list completion and final payment trigger.

Payment Due Dates:

Dates tied to progress certs and invoice submission rules.

Lien Notice Deadlines:

State-specific notice windows to preserve lien rights.

eSignature Vendor Pricing and Feature Snapshot

Compare common vendor pricing and key features relevant to executing Building Contract Templates electronically; signNow is listed first per table 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 free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
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 envelopes/user/year	Varies	Varies	Varies

Real-World Examples Using Contract Templates

Examples show how organizations use templates to speed execution while preserving compliance and recordkeeping.

Martin Properties

A mid-size property manager standardized its contracts for renovation bids to cut cycle time.

Implementation reduced approval steps across teams.
The company now processes and executes contracts online, maintains consistent warranty language, and keeps a clear audit trail for tenant and contractor disputes.

BIS

An engineering firm adopted a template for subcontract orders to ensure consistent indemnity and insurance clauses.

Standard clauses enabled faster procurement.
BIS reported fewer contract exceptions, clearer risk allocation to subcontractors, and improved coordination between procurement and project managers.

Frequently Asked Questions About Building Contract Templates

Answers to common questions about enforceability, signatures, notarization, and recordkeeping for building contracts.

Need help? Contact support

Are electronic signatures legally binding?
Yes. Under the ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes, electronic signatures are generally legally equivalent to handwritten signatures when intent, consent, attribution, and record retention are satisfied.
Do building contracts require notarization?
Not typically. Most construction contracts do not require notarization, but notarizing or witnessing can strengthen evidence of execution in some jurisdictions or for specific instruments tied to real property.
Who must sign the contract for it to be valid?
An authorized representative with legal authority to bind the party must sign. Verify authority via corporate resolution or officer title to avoid challenges to enforceability.
Can I use remote online notarization (RON)?
RON is permitted in many states with specific identity-proofing and recordkeeping requirements; verify state RON rules and notary obligations before relying on a remote notarization.
How long should I keep executed contracts?
Retain contracts for the active term plus applicable post-termination periods; federal guidance includes IRS records for 3 years (IRC §6501(a)) and HIPAA records for 6 years where applicable (45 CFR §164.530(j)).
What if a signature is missing or incorrect?
Missing or incorrect signatures can raise enforceability issues. Remedy with a ratification, re-execution, or an amendment signed by the correct authorized parties to preserve contract validity.

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