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Construction Foundation Repairs Agreement

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CONSTRUCTION FOUNDATION REPAIRS AGREEMENT

This Construction Foundation Repairs Agreement ("Agreement") is entered into as of by and between Client Name: , located at (hereafter "Client"), and Contractor Name: , a construction contractor located at (hereafter "Contractor").

WHEREAS

WHEREAS, Client is the owner or authorized representative of the real property located at (the "Property"); and

WHEREAS, Contractor represents that Contractor is duly qualified, licensed, and experienced to perform foundation repair and associated construction work, and agrees to furnish labor, materials, equipment, supervision and services necessary to complete the foundation repairs described herein in accordance with the terms of this Agreement; and

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree as follows:

1. SCOPE OF WORK

Contractor shall furnish all labor, materials, equipment, supervision, permits, inspections, engineering reports, and other services necessary to perform the work described above in a good and workmanlike manner consistent with industry standards. Any work beyond the written Scope of Work must be authorized in a written change order signed by both parties.

2. PAYMENT TERMS

Any payment not received by Contractor within days after the due date shall accrue interest at the rate of per month (or the maximum lawful rate), and Contractor may suspend work until payment is made in full.

3. TERM AND TERMINATION

Commencement of Work: Work shall commence no later than and substantial completion shall be achieved by , subject to adjustments for change orders, delays, and force majeure.

Either party may terminate this Agreement for material breach if the breaching party fails to cure such breach within days after written notice. Client may terminate for convenience upon days' written notice, subject to payment for work performed and reasonable demobilization costs.

4. CONFIDENTIALITY

Each party agrees to treat as confidential and not to disclose to any third party any proprietary or nonpublic business or technical information obtained from the other party in connection with this Agreement ("Confidential Information"), except as reasonably necessary to perform the work, as required by law, or pursuant to a valid court order. Confidential Information does not include information that (a) is or becomes publicly available other than through a breach of this Agreement, (b) was already lawfully in the receiving party's possession, or (c) is independently developed without reference to Confidential Information of the disclosing party. The obligations of confidentiality shall survive termination of this Agreement for a period of three (3) years.

5. WARRANTIES; INSURANCE; LIENS

Contractor warrants that all labor and materials furnished under this Agreement shall be free from defects in workmanship and materials for a period of from substantial completion, except for defects caused by normal wear and misuse. Contractor shall maintain insurance coverage customary for foundation repair contractors and shall provide certificate(s) of insurance upon request. Contractor shall promptly pay for labor and materials and shall not permit any mechanic's or materialman's lien to be filed against the Property; if a lien is filed arising from Contractor's subcontractors or suppliers, Contractor shall cause the lien to be released within a commercially reasonable time at Contractor's expense.

6. CHANGE ORDERS

All changes to the Scope of Work shall be executed only by written change order signed by both parties setting forth the change in work, the adjustment to the Contract Price, and any extension of time. Contractor shall not be obligated to perform any extra work without a duly executed change order.

7. COMPLIANCE; PERMITS

Contractor shall obtain and pay for all permits and inspections required by applicable laws for the work, unless otherwise agreed in writing. Contractor shall comply with all applicable building codes, ordinances, and regulations. Client shall provide reasonable access to the Property and shall obtain any owner approvals necessary for the performance of the work.

8. INDEMNIFICATION; LIMITATION OF LIABILITY

Contractor shall indemnify, defend and hold Client harmless from and against claims, liabilities, losses and expenses (including reasonable attorneys' fees) to the extent caused by Contractor's negligent acts or omissions in the performance of the work. Client shall indemnify Contractor for claims arising from Client's negligence or failure to disclose known site conditions. EXCEPT FOR LIABILITY ARISING FROM GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, NEITHER PARTY SHALL BE LIABLE FOR CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.

9. FORCE MAJEURE

Neither party shall be liable for delays or failures in performance due to causes beyond its reasonable control, including acts of God, labor disputes, shortages of materials, governmental actions, or severe weather. The time for performance shall be extended for the period of delay. The affected party shall provide prompt written notice of any such delay.

10. GOVERNING LAW; DISPUTE RESOLUTION

This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflict of laws principles. Any dispute arising out of or relating to this Agreement shall be resolved by binding arbitration or litigation as selected by the parties; the parties shall specify the forum and procedures in a separate agreement if a dispute arises.

11. ENTIRE AGREEMENT; SEVERABILITY

This Agreement, including any exhibits and executed change orders, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, proposals and representations, whether written or oral. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

12. NOTICES

All notices, demands or other communications required or permitted under this Agreement shall be in writing and delivered to the addresses set forth above or to such other address as either party may designate in writing, and shall be deemed given when delivered personally, by nationally recognized overnight courier, or three business days after deposit in the United States mail, postage prepaid, certified return receipt requested.

13. MISCELLANEOUS

Contractor represents that it holds the following licenses and registrations necessary to perform the work: License Number: . Client acknowledges that site conditions below grade may vary; Contractor's price and schedule are based on the conditions reasonably visible at the time of inspection. If unforeseen conditions are discovered, parties shall negotiate in good faith to adjust scope, price and schedule.

ACKNOWLEDGMENT

The persons signing below represent and warrant that they are authorized to bind their respective parties to this Agreement.

Client:

By:

Date:

Contractor:

By:

Date:

Enter text✕

What the Construction Foundation Repairs Agreement Covers

A Construction Foundation Repairs Agreement documents the contract between a property owner and a contractor for diagnosing, repairing, and stabilizing a building foundation. It sets scope of work, required engineering reports, access and safety obligations, materials, schedule, payment milestones, change-order procedures, warranty terms, and dispute-resolution methods. The agreement may be signed on paper or electronically when parties consent to electronic records and signatures under U.S. e-signature law; clear documentation supports permit submission, insurance claims, and lien management.

Why a Written Agreement Matters for Foundation Repairs

A clear Construction Foundation Repairs Agreement allocates responsibility, defines payment expectations, preserves warranty rights, and documents permit and inspection requirements; it reduces disputes and protects parties from mechanic's liens and insurance coverage ambiguity.

Why a Written Agreement Matters for Foundation Repairs

Who Typically Prepares and Signs This Agreement

Typical users include homeowners, general contractors, structural engineers, and lenders involved in foundation repair projects.

  • Homeowners managing structural repairs or insurance claims; need clear timelines, warranties, and proof of work.
  • Licensed contractors and subcontractors seeking defined scope, payment terms, and lien waiver provisions to reduce disputes.
  • Engineers, inspectors, and lenders requiring technical reports, permits, and documented acceptance criteria before release of funds.

The agreement clarifies roles and provides documentation needed for permits, insurance claims, lender approvals, and mechanic's lien management.

Step-by-Step: Completing the Agreement

Follow these steps to complete and execute a Construction Foundation Repairs Agreement accurately and in enforceable form.

  • 01
    Gather Info: Collect owner, property, and contractor license details plus inspection reports.
  • 02
    Define Scope: Describe repairs, materials, milestones, and exclusion items precisely.
  • 03
    Set Payment: Document deposit, progress payments, retainage, and final payment conditions.
  • 04
    Execute: Obtain signatures, notarize if required, and distribute executed copies to parties.

Configure an Online Signing Workflow

Configure an online workflow so fields, signer order, authentication, and document attachments align with construction project requirements and permit submittals.

Field Configuration
Signer Order Set sequential signing with contractor first
Authentication Email plus SMS code for higher assurance
Attachments Attach engineer reports and permits as exhibits
Notifications Enable reminders, completion receipts for all parties

Where to Send the Executed Agreement

Typical routing: owner requests repairs, contractor prepares scope, parties sign, contractor files permits and begins work; signed copies distributed to stakeholders.

  • Prepare Contract: Upload template, populate fields, attach engineer report.
  • Send for Signature: Add signers, define order, set authentication level.
  • File Permits: Submit signed contract to local building department as required.
  • Record & Distribute: Provide executed copies to owner, lender, insurer, and permit office.

Technical Requirements for Digital Execution and Submission

Use a platform that supports PDF and Word uploads, mobile signing, audit trails, and integrations with project systems.

  • Formats: PDF, DOCX, and fillable forms
  • Integrations: Procore, NetSuite, Google Workspace
  • Security: TLS 1.2/1.3 and AES-256

Common Timelines and Deadlines to Track

Timelines depend on project scope, permitting cycles, inspection schedules, and payment milestones; plan for permit review and warranty periods.

Permit Submission Deadline:

Submit contract and engineer report before applying for a repair permit to avoid delays.

Start of Work:

Begin work within timeframe stated or after permit issuance and confirmed insurance coverage.

Inspection Milestones:

Schedule initial, progress, and final inspections per local code and inspector availability.

Payment Due Dates:

Tie payments to completed milestones and passed inspections; enforce retainage until final acceptance.

Warranty Period:

State warranty duration, start date, and what constitutes a covered defect.

Key Project Milestones

Major milestones guide the project from inspection through completion, enabling tracking for payments, inspections, and warranty start dates.

01

Initial Inspection

Engineer inspects foundation and issues report detailing required repairs and estimated cost.

02

Estimate Approval

Owner reviews proposal, approves scope, and authorizes contractor to proceed with permit applications.

03

Permit Issuance

Obtain local permits before commencing work to avoid enforcement actions or insurance denial.

04

Final Acceptance

Inspector signs off, owner accepts work, final payment released, and warranty period begins.

Common Mistakes to Avoid

  • Vague scope leads to change-order disputes, cost overruns, and unclear responsibility for adjoining work or concealed conditions.
  • Missing permits or failure to schedule inspections can cause work stoppages, fines, or insurance claim denials.
  • Incorrect contractor licensing, invalid signatures, or absent lien waivers may enable mechanic's lien claims or contract unenforceability.
  • Failing to document materials, tests, and acceptance criteria complicates warranty claims and future resale disclosures.

Penalties and Legal Risks

Mechanic's Lien: Unpaid bills risk lien filing
Permit Fines: Work without permit may incur local fines
Insurance Denial: Coverage may be denied for noncompliant work
Contract Disputes: Ambiguity increases litigation risk
Withholding Tax: Incorrect contractor tax forms trigger backup withholding
Notarization Issues: Missing notarization may hamper record acceptance

Essential Information to Include

Owner Name: Full legal name on ID
Contractor License: State license number and classification
Scope Summary: Brief summary of repairs and limits
Payment Terms: Deposit, milestones, retainage
Permit Numbers: Local permit and application IDs
Warranty Terms: Duration and coverage limits

eSignature Pricing and Feature Comparison

Starter pricing and selected feature availability for signNow and common alternatives used for construction agreements; signNow appears first per product data.

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, no credit card Varies by vendor and plan Varies by vendor and plan Varies by vendor and plan Varies by vendor and plan
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 by plan Varies by plan Varies by plan

Frequently Asked Questions

Answers to common legal, execution, and recordkeeping questions about Construction Foundation Repairs Agreements.


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