Commercial Contract for Contractor in Texas

THIS COMMERCIAL CONSTRUCTION CONTRACT (“Contract”), effective as of the date of the last party to sign below, is between , having an address at (“Contractor”) and , having an address at (“Owner”).

For valuable consideration the parties hereby agree as follows:

1. SCOPE OF WORK: Contractor shall provide all labor and materials, and perform all work necessary for the completion of the residence, structure, or improvements as described in the drawings and specifications signed by both Owner and Contractor (“Project”) and more particularly described as

Such drawings and specifications are hereby made a part of this Contract. Drawings and specifications shall contain a scale drawing showing the shape, size, and dimensions of the construction and equipment together with a description of the work to be done, materials to be used, and the equipment to be used or installed.

2. WORK SITE: The Project shall be constructed on the property of Owner located at and more particularly described as (hereafter "the Work Site").

3. TIME OF COMPLETION: Contractor shall commence the work to be performed under this Contract on or before and shall substantially complete the work on or before .

4. PERMITS: Contractor shall apply for and obtain such permits and regulatory approvals as may be required by the local municipal/county government, the cost thereof shall be included as part of the Project price.

5. SOIL CONDITIONS: Contractor shall have no responsibility for the condition of the soils at the Work Site.

6. SURVEY AND TITLE: If the Project is near the Owner’s property boundary, Owner will point out property lines to the Contractor.

7. CHANGES TO SCOPE OF WORK: Owner may make changes to the scope of the work, including changes to the drawings and specifications, from time to time during the construction of the Project. However, any such change or modification shall only be made by written "Change Order" signed by both parties.

8. CONTRACT PRICE:

{COST PLUS}

Owner agrees to pay Contractor the actual cost to Contractor of materials plus the sum of $ for performing the services set forth in the scope of the work.

OR

{FIXED FEE}

Owner agrees to pay Contractor the sum of $ for performing the services set forth in the scope of the work.

9. PROGRESS PAYMENTS:

A. Owner shall make progress payments on account of the contract price to Contractor, on the basis of applications for payment submitted to by Contractor as the work progresses.

B. Progress payments may be withheld if:

1. Work is found defective and not remedied;

2. Contractor does not make prompt and proper payments to subcontractors;

3. Contractor does not make prompt and proper payments for labor, materials, or equipment furnished to Contractor;

4. A subcontractor is damaged by an act for which Contractor is responsible;

5. Claims or liens are filed with regard to the project; or

6. In the opinion of Contractor's work is not progressing satisfactorily.

10. FINAL PAYMENT:

A. Owner shall make final payment to Contractor within days after the work is completed.

B. Owner, by making payment, waives all claims except those arising out of the following...

C. Contractor, by accepting final payment, waives all claims except those previously made in writing.

11. LATE PAYMENT/DEFAULT: Owner agrees to pay a late charge of 1% of all payments that are more than ten (10) days late plus interest at the rate of 1% per month.

12. CONTRACTS DOCUMENTS:

A. The contract documents on which the agreement between Owner, , and Contractor is based, that contain the plans and specifications in accordance with which the work is to be done are as follows:

13. DESIGNATION OF ARCHITECT/ENGINEER:

The for above-described project is , having an office at .

14. DUTIES AND AUTHORITY OF ARCHITECT/ENGINEER:

The duties and authority of the architect/engineer are as follows:

A. General Administration of Contract. The primary function of the is to provide the general administration of the contract.

B. Inspections, Opinions, and Progress Reports. He/she shall keep familiar with the progress and quality of the work by making periodic visits to the work site.

15. RESPONSIBILITIES OF OWNER:

A. Owner shall give all instructions to Contractor through ; shall furnish all necessary surveys for the work; and shall secure and pay for easements as necessary.

16. RESPONSIBILITIES OF CONTRACTOR:

A. Responsibility for and Supervision of Construction.

B. Discipline and Employment.

C. Furnishing of Labor, Materials, etc.

D. Payment of Taxes and Procurement of Licenses and Permits.

E. Compliance with Construction Laws and Regulations.

F. Responsibility for Negligence of Employees and Subcontractors.

G. Warranty of Fitness of Equipment and Materials.

H. Furnishing of Samples and Shop Drawings.

I. Clean-up.

17. RIGHT TO CURE: Contractor shall have the right to cure a defect before Owner may file any action in court against Contractor.

18. DESTRUCTION AND DAMAGE: If the Project is destroyed or damaged for any reason, Owner shall pay Contractor for additional work done in rebuilding or restoring the Project to its prior condition.

19. ASSIGNMENT: Neither party may assign this Contract, or payments due under the Contract, without the other party’s written consent.

20. INTERPRETATION:

A. Interpretation of Documents.

B. Entire Agreement.

C. Governing Law. This Contract shall be interpreted and governed in accordance with the laws of the State of Texas.

21. ATTORNEYS’ FEES AND COSTS: If any party to this Contract brings a cause of action against the other party, the prevailing party shall be entitled to recover reasonable attorney fees and court costs.

22. PERFORMANCE:

A. Contractor may, at its discretion, engage licensed subcontractors to perform work pursuant to this Contract.

B. All work shall be completed in a workman-like manner and in compliance with all building codes and applicable laws.

C. Contractor agrees to remove all debris and leave the premises in broom clean condition.

23. TIME OF ESSENCE; EXTENSION OF TIME

A. All times stated in this agreement or in the contract documents are of the essence.

B. The times stated in this agreement or in the contract documents may be extended by a change order from for such reasonable time as he/she may determine.

24. SUBCONTRACTORS

A. Contractor agrees to furnish , prior to execution, with a list of names of subcontractors.

B. A subcontractor, for the purposes of this agreement, shall be a person with whom Contractor has a direct contract for work at the project site.

C. Contractor agrees not to employ a subcontractor to whose employment reasonably objects.

D. All contracts between Contractor and subcontractors shall conform to the provisions of the contract documents.

25. MANDATORY ARBITRATION

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

Prior to arbitration, the parties shall try to resolve disputes by mediation.

A demand for arbitration shall be made within the following time limits:

26. INSURANCE

A. Contractor's Liability Insurance.

B. Owner's Liability Insurance.

C. Property Damage Insurance on Work Site.

D. Waiver of Work Site Property Damage Claims to Extent of Insurance Coverage.

27. CORRECTING WORK

Contractor shall correct any defects appearing within from the date of issuance of a certificate of substantial completion.

28. WORK CHANGES

A. Owner reserves the right to order work changes in the nature of additions, deletions, or modifications.

B. All changes will be authorized by a written change order signed by Owner or by as Owner's agent.

C. Work shall be changed only as set out in the written change order.

D. Any adjustment in the contract price shall be determined by mutual agreement or arbitration.

29. TERMINATION

A. Contractor's Termination. Contractor may, on days written notice to Owner and terminate this agreement.

B. Owner's Termination. Owner may, on days notice to Contractor, terminate this agreement.

30. NO WAIVER The failure of either party to insist upon performance shall not be construed as waiving any terms and conditions.

31. WARRANTY: Contractor's warranty shall be limited to defects in workmanship within the scope of work performed and known within one (1) year from the date hereof.

32. NO WORK COMMENCED: Contractor and Owner affirm that:

(a) no work of any kind has commenced or been performed on the Property;

(b) no labor or materials have been ordered or furnished for use in such construction; and

(c) no contracts or agreements for the furnishing of labor, materials, or services have been executed.