Establishing secure connection…Loading editor…Preparing document…

Construction Builders Contract

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

CONSTRUCTION BUILDERS CONTRACT

This Construction Builders Contract (the "Agreement") is made effective as of by and between Owner: whose address is and Builder: whose address is .

WHEREAS

WHEREAS, Owner is the lawful owner of the real property described as: (the "Property"); and

WHEREAS, Builder represents that Builder is duly licensed, experienced and qualified to perform construction services and will furnish labor, materials, equipment and supervision necessary to perform the Work described in this Agreement; and

WHEREAS, the parties desire to set forth their respective rights and obligations with respect to the construction of improvements on the Property under the terms and conditions contained herein.

SCOPE OF WORK

Builder shall perform and complete all labor, services, materials and supervision necessary for the construction, installation and completion of the Project in accordance with the Contract Documents. The Contract Documents consist of this Agreement, drawings, specifications, and any executed change orders.

PAYMENT TERMS

The total contract sum agreed between the parties for the performance of the Work is:

Late payments shall bear interest at the lesser of the maximum rate permitted by law or % per month, assessed after days following the date payment is due. In addition, Owner shall be responsible for reasonable collection costs and attorney fees incurred by Builder in enforcing payment.

TERM AND TERMINATION

The Work to be performed under this Agreement shall commence on and is estimated to be substantially complete by . Time is of the essence with respect to the schedule described in the Contract Documents.

CHANGE ORDERS

Any change to the Scope of Work, Contract Price, or completion schedule shall be made only by a written Change Order signed by Owner and Builder. Change Orders shall specify changes in scope, price adjustments, and any extension of time. Builder shall not be obligated to proceed with changed work absent an executed Change Order.

WARRANTIES, INSPECTIONS, LIENS

Builder warrants that all work performed under this Agreement will be free from defects in workmanship for a period of from substantial completion, unless otherwise expressly stated in writing. Owner shall inspect the Work promptly and provide written notice of any claimed defects.

Builder shall pay subcontractors and suppliers in a timely manner and shall not permit any lien to remain on the Property. Owner may, at Owner's option, pay undisputed amounts into trust or escrow to resolve lien claims.

CONFIDENTIALITY

Each party shall treat as confidential and shall not disclose to any third party proprietary information, trade secrets, pricing, designs, plans, or other non-public information received from the other party in connection with this Agreement ("Confidential Information"), except as required by law or to perform the Work. Confidential Information does not include information that is or becomes publicly available through no fault of the receiving party, or was rightfully known to the receiving party prior to disclosure.

INDEMNIFICATION

Builder shall indemnify, defend and hold harmless Owner from and against all claims, damages, losses and expenses, including reasonable attorney fees, arising out of Builder's negligent performance of the Work or breach of this Agreement, except to the extent such claims arise from Owner's negligence or willful misconduct.

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.

ENTIRE AGREEMENT

This Agreement, together with the Contract Documents and any Change Orders, constitutes the entire agreement between the parties and supersedes all prior negotiations, representations or agreements, written or oral, concerning the subject matter hereof. No amendment shall be effective unless in writing and signed by both parties.

DISPUTE RESOLUTION

The parties shall attempt in good faith to resolve disputes arising under this Agreement through negotiation. If negotiation fails, disputes shall be resolved by binding arbitration in accordance with the commercial arbitration rules agreed upon by the parties, conducted in the county where the Property is located, unless otherwise mutually agreed.

NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above or to such other address as a party may designate by written notice. Notice is effective upon personal delivery, confirmed delivery by courier, or three (3) days after deposit in the U.S. mail, postage prepaid, certified or registered.

Owner Printed Name:

By:

Date:

Builder Printed Name:

By:

Date:

Enter text✕

What the Construction Builders Contract Is

A Construction Builders Contract is a written agreement that sets the legal relationship between a property owner, general contractor, and any subcontractors engaged to perform construction work. It defines the scope of work, deliverables, timeline, payment terms, responsibilities for permits, insurance and bonds, change order procedures, and dispute resolution. The contract creates enforceable rights and obligations, allocates risk for delays, defects, and cost overruns, and supports lien and payment claim processes when statutory remedies are needed. Properly completed, it reduces ambiguity about performance and payment expectations.

Why this Contract Matters for Projects

A clear Construction Builders Contract controls scope, payment, schedule, and risk allocation to reduce disputes and support enforcement of liens or contract claims.

Why this Contract Matters for Projects

Who Typically Prepares or Signs This Contract

The contract is used across project stakeholders to coordinate obligations and protect payment rights.

  • General contractors and construction managers who control subcontractor relationships and schedule the work.
  • Property owners or developers who need performance assurances, insurance proof, and payment milestones.
  • Subcontractors and suppliers who rely on contract terms for scope, payment timing, and lien notice rights.

Core Parts of a Professional Builders Contract

A complete contract organizes project obligations so parties can perform, get paid, and resolve issues without ambiguity.

Scope of Work

Detailed description of tasks, deliverables, drawings, and technical standards so parties share the same performance expectations.

Price & Payment

Contract price, schedule of payments, retainage, progress payment triggers, and invoicing instructions tied to measurable milestones.

Schedule

Start and completion dates, milestone deadlines, liquidated damages or delay remedies, and procedures for extensions.

Change Orders

Process for approving changes, price/time adjustments, documentation required, and who signs to authorize scope changes.

Insurance & Bonds

Required coverages, certificate requirements, performance and payment bonds, and responsibility for claims and deductibles.

Dispute Resolution

Selection of governing law, mediation/arbitration clauses, venue, and attorney fee allocation for contract disputes.

Essential Data Fields to Include

Parties: Legal names
Scope: Work summary
Price: Amount & terms
Schedule: Dates & milestones
Insurance: Carrier & limits
Signatures: Authorized signers

Step-by-Step: How to Complete the Contract

Follow a consistent sequence to populate, review, and execute the contract so all parties approve the same final document.

  • 01
    Gather Documents: Collect plans, specs, insurance certificates, and permits before drafting terms.
  • 02
    Draft Terms: Populate scope, price, schedule, change order, and payment clauses.
  • 03
    Review & Negotiate: Circulate to counsel and stakeholders, track redlines, and agree on final wording.
  • 04
    Execute & Distribute: Obtain signatures, deliver copies to all parties, and record any lien-related attachments.

Configuring an Online Contract Workflow

Set up fields, authentication, and integrations so the digital version mirrors your paper process and captures an audit trail.

Template Setup Create reusable template with locked clauses and editable fillable fields.
Conditional Fields Show or hide pricing or contingency fields based on user selections.
Signer Authentication Choose email, SMS code, or KBA depending on required assurance.
Notification Rules Set reminders, expiry notices, and routing order for approvals.
Integrations Connect to project systems (e.g., Procore, NetSuite) to sync contract metadata.

Where to Send the Signed Contract

Decide final destinations for executed copies: parties, project file, lender, and those who need the contract for compliance or payment.

  • Owners: Send fully executed PDF to the owner and their representative.
  • Contractor File: Store a complete signed copy in the general contractor's project folder.
  • Lender/Servicer: Provide executed contract to lender if financing conditions require it.
  • Permitting Office: File attachments required by permit or local code as instructed by jurisdiction.

Digital Signing and Delivery Considerations

When using electronic execution, verify authentication level, audit trail, and storage format that satisfy legal and project requirements.

  • File Formats: PDF, DOCX supported
  • Integrations: Salesforce, Procore, NetSuite
  • Security: TLS in transit; AES-256 at rest

Typical Timelines and Deadline Items

Track contractual dates and statutory deadlines separately; some filings like lien notices or permit conditions impose strict statutory timing.

Contract Effective Date:

Start of rights and duties; triggers schedule and notice windows.

Milestone Completion:

Dates tied to payments and retainage release.

Payment Due Dates:

Net terms and retainage release schedule.

Mechanic's Lien Notices:

Statutory deadlines for notice and filing vary by state.

Warranty Periods:

Defined duration for defects and repair obligations.

Common Mistakes to Avoid

  • Vague scope descriptions that invite disagreement over what work is included and who pays for extras.
  • Missing or inconsistent signer authority leading to disputes about whether an entity was properly bound.
  • Unclear change order procedures causing unpaid work or unilateral scope changes without documented approval.
  • Failing to preserve notices or lien-related documents within required statutory timelines for a particular state.

Risks and Consequences of an Incomplete Contract

Payment Delay: Withheld funds
Liens Filed: Encumbrances on title
Breach Claims: Litigation or arbitration
Permit Violations: Fines or stop-work
Bond Claims: Surety demand
Tax Exposure: Withholding or reporting issues

eSignature Vendor Pricing Snapshot for Construction Contracts

Compare common plan-level criteria relevant to contract execution platforms; signNow appears first for reference and pricing is shown at a plan-starting level.

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 Trial varies Trial varies Trial varies Trial varies
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Real-World Use Examples

These short examples illustrate how parties use a Construction Builders Contract to streamline execution and reduce disputes.

Martin Properties (Owner)

Martin Properties needed rapid tenant-improvement signoff to meet lease deadlines.

  • They used a standardized builders contract and online signatures to finalize approvals quickly.
  • Tim Martin, Founder, noted that processing and executing documents online provided compliance, security, and faster turnaround compared with couriered signatures, enabling the project to stay on schedule and reducing administrative delays.

Optica Ventures (GC)

Optica Ventures used a template to issue subcontractor agreements across multiple sites to ensure consistent payment terms.

  • The standardized contract simplified onboarding for trades.
  • Brian Fitzgibbons, COO, observed the interface was easy for their team and customers, reducing negotiation cycles and improving clarity on scope and payment milestones.

Frequently Asked Questions and Quick Answers

Answers to common execution and enforceability questions for Construction Builders Contracts, focused on practical next steps.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users