Construction Contract

CONSTRUCTION CONTRACT

THIS 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").

Owner hereby authorizes Contractor to commence and complete the usual and customary excavation and grading on the Work Site as may be required in the judgment of the Contractor to complete the Project. Unless called for in the drawings or specifications, no landscaping, finish grading, filling or excavation is to be performed at the Work Site by the Contractor.

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 .

Contractor shall not be liable for any delay due to circumstances beyond its control including strikes, casualty, acts of God, illness, injury, or general unavailability of materials.

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. Any excavation, filling or other work required by the Owner other than the usual and customary excavation and grading shall be agreed to in a Change Order for an amount in addition to the Contract Price. Contractor shall not be responsible for any damages suffered by Owner as a result of the soil conditions at the Work Site.

6. INSURANCE: Contractor shall maintain general liability, workers compensation and builder's risk insurance.

7. SURVEY AND TITLE: If the Project is near the Owner’s property boundary, Owner will point out property lines to the Contractor. If the Owner or Contractor has any doubt about the location of the property lines, Owner shall provide Contractor with boundary stakes through a licensed surveyor. In addition, Owner shall provide Contractor documentation that Owner has title to the Work Site and shall provide Contractor copies of any covenants, conditions, or restrictions that affect the Work Site.

8. 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. Such Change Orders shall become part of this Contract. Owner agrees to pay any increase in the cost of the Project as a result of a Change Order. In the event the cost of a Change Order is not known at the time a Change Order is executed, the Contractor shall estimate the cost thereof and Owner shall pay the actual cost whether or not it is in excess of the estimated cost.

9. 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.

Contractor shall be paid as follows:

OR

{FIXED FEE}

Owner agrees to pay Contractor the sum of $ for performing the services set forth in the scope of the work. Contractor shall be paid as follows:

Contractor shall furnish Owner appropriate releases or waivers of lien for all work performed or materials provided at the time the next periodic payment shall be due.

10. LATE PAYMENT/DEFAULT: A failure to make payment for a period in excess of ten (10) days from the due date shall be deemed a material breach of this Contract. If payment is not made when due, Contractor may suspend work on the job until such time as all payments due have been made without breach of the Contract pending payment or resolution of any dispute. 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.

11. DESTRUCTION AND DAMAGE: If the Project is destroyed or damaged for any reason, except where such destruction or damage was caused by the sole negligence of the Contractor or its subcontractors, Owner shall pay Contractor for any additional work done by Contractor in rebuilding or restoring the Project to its condition prior to such destruction or damage. If the estimated cost of replacing work already accomplished by Contractor exceeds 20 percent of the Contract price, either the Contractor or Owner may terminate this Contract. Upon termination by either party, Contractor shall be excused from further performance under this Contract and Owner shall pay Contractor a percentage of the Contract price in proportion to the amount of work accomplished prior to the destruction or damage.

12. ASSIGNMENT: Neither party may assign this Contract, or payments due under the Contract, without the other party’s written consent. Any such assignment shall be void and of no effect.

13. INTERPRETATION:

(a) Interpretation of Documents. The Contract, drawings, and specifications are intended to supplement one another. In the event of a conflict, the specifications shall control the drawings, and the Contract shall control both. If work is displayed on the drawings but not called for in the specifications, or if the work is called for in the specifications but not displayed on the drawings, Contractor shall be required to perform the work as though it were called for and displayed in both documents.

(b) Entire Agreement. This Contract constitutes the entire agreement of the parties. No other agreements, oral or written, pertaining to the work to be performed under this Contract exists between the parties. This Contract may only be modified only by a written agreement signed by both parties.

(c) Governing Law. This Contract shall be interpreted and governed in accordance with the laws of the State of Georgia.

14. ATTORNEYS’ FEES AND COSTS: If any party to this Contract brings a cause of action against the other party arising from or relating to this Contract, the prevailing party in such proceeding shall be entitled to recover reasonable attorney fees and court costs.

15. PERFORMANCE:

(a) Contractor may, at its discretion, engage licensed subcontractors to perform work pursuant this Contract provided Contractor shall remain fully responsible for the proper completion of the Project.

(b) All work shall be completed in a workman-like manner and in compliance with all building codes and applicable laws. To the extent required by law, all work shall be performed by individuals duly licensed and authorized by law to perform said work.

(c) Contractor agrees to remove all debris and leave the premises in broom clean condition.

16. WARRANTY:

1. SCOPE AND DURATION. , whose business address is , as warrantor (“Contractor”), warrants to the above-named Owner (“Owner”), for a period of one (1) year from the date of Substantial Completion (“Warranty Period”), as more specifically defined in the Construction Contract between Owner and Contractor (the “Contract”), that all repairs, renovations, or other remodeling undertaken by Contractor to the Project, except such repairs, renovations, or other remodeling specifically excluded below, substantially conform with the Construction Standards set forth in the Agreement.

2. WARRANTOR’S DUTY. Upon receiving notice during the Warranty Period, as described in by Article 5 below, of any defect covered by this Limited Warranty, Contractor, at its sole option and expense, shall repair, replace, or pay reasonable sums necessary to make such repairs to conform with the Construction Standards set forth in the Contract. This Limited Warranty does not cover minor cosmetic flaws which were not listed in the Project List.

3. EXCLUSIONS.

A. This Limited Warranty does not cover consumer products for the purpose of the Magnuson-Moss Warranty Act, 15 U.S.C. Sec. 2301 et seq. Contractor’s only duty with respect to items not warranted by Contractor shall be to assign and deliver to the Owner all manufacturers’ and suppliers’ warranties that by their terms are assignable covering consumer products, including appliances, fixtures, finishes, and other equipment installed in and provided with the Project. Contractor is in no way responsible for performance under any manufacturer’s or supplier’s warranties.

B. This Limited Warranty covers only items that have been repaired, renovated, or otherwise improved by Contractor under the Contract between Owner and Contractor. This Limited Warranty does not cover repairs, renovations, or other remodeling work not undertaken by Contractor; defects resulting from improper maintenance, misuse, abuse, or failure of Owner to follow operating instructions; and defects or damage resulting from fires, floods, storms, the elements, electrical malfunctions, accidents, or acts of God.

C. Under no circumstances shall Contractor be responsible by virtue of this Limited Warranty or otherwise for any secondary damages to a person or Project arising from the use or inability to use the Project because of a defect, whether such damages are incidental or consequential.

D. This Limited Warranty covers only construction activities on or within the residence.

This Limited Warranty does not cover defects in recreational facilities, swimming pools, fences, driveways, landscaping, or other improvements which are not a part of the home.

4. OTHER RIGHTS. This Limited Warranty is in addition to any rights that the Owner may have under state, federal, and local laws, including but not limited to rights under applicable governmental codes, regulations or local ordinances. If the current edition of the Residential Construction Performance Guidelines as published by the National Association of Home Builders (“Guidelines”) includes a standard for specific work or activities covered by this Limited Warranty that is more stringent than one in the Homeowner Handbook, the Guidelines standard shall apply.

5. WARRANTY PROCEDURES. If Owner discovers a defect during the Warranty Period which is covered by this Limited Warranty, Owner shall notify Contractor in writing within nine (9) days of discovery, describing in specific terms the nature of such defect. Upon receipt of the written statement, Contractor’s representatives will meet with Owner, inspect the item, and shall make efforts to have any defect covered by this Limited Warranty corrected within a reasonable period of time. If such discovery is made within nine (9) days prior to the expiration of the Warranty Period, Owner must also notify Contractor by phone within twenty-four (24) hours of such discovery at the address and number provided below. NOTWITHSTANDING ANY OTHER PROVISION HEREOF, WARRANTOR SHALL HAVE NO LIABILITY HEREUNDER UNLESS OWNER COMPLIES WITH ALL APPLICABLE NOTICE REQUIREMENTS PROVIDED HEREIN. The notice must be delivered to the following address:

Street Address , City , Georgia, Zip Code: .

Contractor's phone number for notice within 24 hours of discovery of defects is .

17. DISPUTE RESOLUTION NOTICE TO OWNER: GEORGIA LAW CONTAINS IMPORTANT REQUIREMENTS YOU MUST FOLLOW BEFORE YOU MAY FILE A LAWSUIT OR OTHER ACTION FOR DEFECTIVE CONSTRUCTION AGAINST THE CONTRACTOR WHO CONSTRUCTED, IMPROVED, OR REPAIRED YOUR HOME. NINETY DAYS BEFORE YOU FILE YOUR LAWSUIT OR OTHER ACTION, YOU MUST SERVE ON THE CONTRACTOR A WRITTEN NOTICE OF ANY CONSTRUCTION CONDITIONS YOU ALLEGE ARE DEFECTIVE. UNDER THE LAW, A CONTRACTOR HAS THE OPPORTUNITY TO MAKE AN OFFER TO REPAIR OR PAY FOR THE DEFECTS OR BOTH. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER MADE BY A CONTRACTOR. THERE ARE STRICT DEADLINES AND PROCEDURES UNDER STATE LAW, AND FAILURE TO FOLLOW THEM MAY AFFECT YOUR ABILITY TO FILE A LAWSUIT OR OTHER ACTION.

*optional notice to include in installment contracts:

Notice to the Buyer

Do not sign this before you read it or if it contains any blank spaces. You are entitled to an exact copy of the paper you sign. You have the right to pay in advance the full amount due and under certain conditions to obtain a partial refund of the time price differential.