Construction Contract for Bathroom Remodeling

Construction Contract for Bathroom Remodeling

Agreement made on the between of , referred to herein as Owner, and , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Contractor.

For and in consideration of the mutual covenants contained in this agreement, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

1. Scope of Work

A. Contractor shall provide all labor and materials, and perform all work necessary for the completion of the remodeling of the Bathroom located at the Residence, with the address of , as described in the drawings and specifications signed by both Owner and Contractor (the Project) and more particularly described in Exhibit A attached hereto and made a part hereof.

B. 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.

C. The materials to be used in the Project are set forth in Exhibit A attached hereto and made a part hereof.

D. Contractor will not do any work not set forth in this Agreement.

E. The subcontractors, if any, to be used on the Project are: (Name, address and registration number of each):

F. All contractors and subcontractors must be registered by the and that any inquiries about a contractor or subcontractor relating to a registration should be directed to the .

2. Work Site

The Project shall be constructed on the property of Owner located at , and more particularly described as 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

The permits required for this Project are set forth in Exhibit B attached hereto and made a part hereof. It shall be the obligation of the Contractor to obtain said permits, and any homeowner who secures their own permits may be excluded from any guaranty fund provision allowed by law of this State.

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.

6. Insurance

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

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. 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.

8. Contract Price

Cost Plus Alternative

A. Owner will pay the cost of all materials necessary to do the above-described work actually used in the construction and will pay the wages of all carpenters and other workers for actual time spent on the job and will pay Contractor (%) of the cost of the materials, labor, and other expenditures necessary for the completion of the work such as workers' compensation. In consideration of this %, Contractor agrees to execute close supervision over the work at all times and will devote whatever time he can to actually working on the job, all for the specified %. The amount of wages paid the workers on the job shall not be more than the usual wage scale paid such workers in the vicinity of the Project to do this type of work. At each payday, the wages of the workers will be paid by Owner and a receipt taken from each worker. These payments will be made on behalf of Contractor and at the same time Owner will pay to Contractor the amount of withholding taxes, social security, and similar items that is deducted from each worker's wages. Owner will likewise pay all material bills and invoices, paying the exact cost of such material less any and all discounts that contractor will be able to obtain on all materials used on the job.

B. Contractor will at all times keep Owner informed of the details of the amount of materials purchased and the amount used on the job, as well as keeping Owner informed of the wages being paid the various workers on the job. The bills and invoices of all subcontractors will be paid directly by Owner on the same basis as set forth in this Agreement on the wages of the workers.

C. Compensation to Contractor shall not include:

1. Salaries of Contractor's executive officers.

2. Salary of any person employed during the execution of the work in the main or branch office of Contractor whose time is devoted to the general conduct of Contractor's business, such as supervisors, secretaries, plan clerks, file clerks, checkers, drafters, and other such persons.

3. Cost of capital employed or money borrowed.

4. Overhead or general expense of any kind, except any such specifically mentioned elsewhere in this Agreement.

5. Services and expenses of Contractor's home office estimating, purchasing, and cost and accounting departments.

6. Costs incurred by Contractor due to any error, fault, or negligence on the part of Contractor, its subcontractors, agents, or employees, or due to their failure to comply in all respects with the provisions of this Agreement and with the plans.

D. Billing on cost-plus work

Cost-plus billings shall be supported with proper bills and invoices for labor, materials, subcontracts, and other items.

Fixed Price Alternative

Owner will pay Contractor for performance of the work described in the preceding section the total sum of $ (the Contract Price) payable as follows:

A. The sum of $ upon the execution of this Agreement.

B. The sum of $ on or before the day of each month, beginning in the month of , up to and including the month of .

C. The sum of $ on final completion of the work and settlement of all claims of laborers and material suppliers.

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.

9. Late Payment and 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.

10. 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 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.

11. Notice Possible Mechanic’s Lien

The undersigned Contractor is about to perform work and/or furnish materials for the construction, erection, alterations or repair upon the land at the address stated above. This is a notice that the undersigned and any other persons who provide labor and materials for the improvement under contract with the undersigned may file a mechanic's lien upon the land in the event of nonpayment to them. It is Owner’s responsibility to assure himself that those other persons under contract with the undersigned receive payment for their work performed and materials furnished for the construction, erection, alteration or repair upon the land.

12. Interpretation

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.

13. 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.

14. Warranty

Contractor's warranty shall be limited to defects in workmanship within the scope of work performed by Contractor and which arise and become known within one (1) year from the date hereof. All said defects arising after one (1) year and defects in material are not warranted by Contractor. Contractor hereby assigns to Owner all warranties on materials as provided by the manufacturer of such materials. Notwithstanding the forgoing, Owner is entitled to all warranties as required by the state of .

15. Cancellation Rights

You may cancel this provided you notify the Contractor in writing at his main office or branch by ordinary mail posted, by telegram sent or by delivery, not later than midnight of the third business day following the signing of this agreement. See the attached Notice to exercise in Exhibit C attached hereto and made a part hereof.

16. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

17. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement. Owner does hereby acknowledge receipt of a copy of the Agreement.

18. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect. Notwithstanding the forgoing, this Agreement incorporates by reference any arbitration requirements of the state of .

19. In this contract, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

WITNESS our signatures as of the day and date first above stated.

Do not sign this contract if there are any blank spaces.

The name and address of the salesperson (if any) who solicited this Agreement is , of .

ATTACH EXHIBITS A, B and C

Exhibit C

Notice of Cancellation

(Enter date of transaction)

You may cancel this transaction, without any penalty or obligation, within three business days from the above date. If you cancel, any property traded in, any payments made by you under the agreement, and any negotiable instrument executed by you will be returned within ten business days following receipt by the Contractor of your cancellation notice, and any security interest arising out of the transaction will be cancelled.

If you cancel, you must make available to the Contractor at your residence, in substantially as good condition as when received, any goods delivered to you under this Agreement; or you may if you wish, comply with the instructions of the Contractor regarding the return shipment of the goods at the Contractor’s expense and risk.

If you do make the goods available to the Contractor and the Contractor does not pick them up within twenty days of the date of your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the Contractor, or if you agree to return the goods to the Contractor and fail to do so, then you remain liable for performance of all obligations under the contract.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written notice, or send a telegram to

To:

at not later than midnight of .

I hereby cancel this transaction as of .

WITNESS my signature this the .