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Contract for Proportionate Value of Labor Services, Products, and Materials

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Construction Contract Forms

PRECONTRACT NOTICES

Owner:

Contractor:

Project Location:

Project Description:

Building Permits needed for the above mentioned project:

I, the Contractor, have a state certificate of financial responsibility showing I am either bonded or have liability insurance, and that if required, I have worker’s compensation insurance and am making the required unemployment insurance contributions. Such certificate is required for me to obtain the above mentioned building permits.

You, the Owner, are entitled to receive written lien waivers from all contractors, subcontractors, and material suppliers: (a) at or prior to the time final payment is made on the construction contract, and (b) when partial payments are made at various stages of the project to the extent required by the construction contract for the proportionate value for all labor, services, products, and materials furnished or delivered.

The insurance or protection is furnished by someone other than the Contractor.

The terms, conditions and limitations are as follows:

The name of the insurer or the person who is to furnish such protection is

The address of the insurer or the person who is to furnish such protection is

A copy of the insuring or protection agreement shall be furnished to the buyer before final payment is due under the contract.

A person other than the seller is to act as the general contractor or assume responsibility for performance of the contract.

Name of responsible party:

Address of responsible party:

The contract shall not be sold or assigned without the written consent of the buyer.

AS REQUIRED BY THE WISCONSIN CONSTRUCTION LIEN LAW, CLAIMANT HEREBY NOTIFIES OWNER THAT PERSONS OR COMPANIES PERFORMING, FURNISHING, OR PROCURING LABOR, SERVICES, MATERIALS, PLANS, OR SPECIFICATIONS FOR THE CONSTRUCTION ON OWNER'S LAND MAY HAVE LIEN RIGHTS ON OWNER'S LAND AND BUILDINGS IF NOT PAID. THOSE ENTITLED TO LIEN RIGHTS, IN ADDITION TO THE UNDERSIGNED CLAIMANT, ARE THOSE WHO CONTRACT DIRECTLY WITH THE OWNER OR THOSE WHO GIVE THE OWNER NOTICE WITHIN 60 DAYS AFTER THEY FIRST PERFORM, FURNISH, OR PROCURE LABOR, SERVICES, MATERIALS, PLANS OR SPECIFICATIONS FOR THE CONSTRUCTION. ACCORDINGLY, OWNER PROBABLY WILL RECEIVE NOTICES FROM THOSE WHO PERFORM, FURNISH, OR PROCURE LABOR, SERVICES, MATERIALS, PLANS, OR SPECIFICATIONS FOR THE CONSTRUCTION, AND SHOULD GIVE A COPY OF EACH NOTICE RECEIVED TO THE MORTGAGE LENDER, IF ANY. CLAIMANT AGREES TO COOPERATE WITH THE OWNER AND THE OWNER'S LENDER, IF ANY, TO SEE THAT ALL POTENTIAL LIEN CLAIMANTS ARE DULY PAID.

NOTICE CONCERNING CONSTRUCTION DEFECTS

Wisconsin law contains important requirements you must follow before you may file a lawsuit for defective construction against the contractor who constructed your dwelling or completed your remodeling project or against a window or door supplier or manufacturer. Section 895.07 (2) and (3) of the Wisconsin statutes requires you to deliver to the contractor a written notice of any construction conditions you allege are defective before you file your lawsuit, and you must provide your contractor or window or door supplier the opportunity to make an offer to repair or remedy the alleged construction defects. You are not obligated to accept any offer made by the contractor or window or door supplier. All parties are bound by applicable warranty provisions.

CONTRACTOR:

Signature:

Print Name & Title:

Date:

OWNER:

Signature:

Print Name:

Date:

BRICK MASONRY CONTRACT

THIS BRICK MASONRY 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").

2. WORK SITE: The Project shall be constructed on the property of Owner located at and more particularly described as .

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. Any excavation, filling or other work required by the Owner not specified in this agreement 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 and workers compensation 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 plans 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:

Finance charges at the rate of apply.

Hourly labor rates apply as follows: . Materials cost apply as follows: . Other terms and conditions affecting price apply 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, plans, and specifications are intended to supplement one another. In the event of a conflict, the specifications shall control the plans, and the Contract shall control both. If work is displayed on the plans but not called for in the specifications, or if the work is called for in the specifications but not displayed on the plans, 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 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 Wisconsin.

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 to 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: 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.

AGREED:

CONTRACTOR:

Signature:

Print Name & Title:

Date:

License Number:

Name and Address of License Holder:

OWNER:

Signature:

Print Name:

Date:

SALES REPRESENTATIVE (if applicable)

Name & Title:

Address:

Note on when to provide the Owner the “Customer’s Right to Cancel” forms below.

If the Construction Contract is for home improvement and the Contract was signed away from your regular place of business, you must provide the Owner two copies of the “Customer’s Right to Cancel” form if one of the following also applies:

• the transaction was initiated by face-to-face solicitation away from the Contractor’s regular place of business; or

• the transaction was initiated by mail; or

• the transaction was initiated by a phone solicitation.

CUSTOMER’S RIGHT TO CANCEL (Copy 1)

You may cancel this agreement by mailing a written notice to

before midnight of the third business day after you signed this agreement. If you wish, you may use this page as that notice by writing “I hereby cancel” and adding your name and address. A duplicate of this page is provided by the seller for your records.

CUSTOMER’S RIGHT TO CANCEL (Copy 2)

You may cancel this agreement by mailing a written notice to

before midnight of the third business day after you signed this agreement. If you wish, you may use this page as that notice by writing “I hereby cancel” and adding your name and address. A duplicate of this page is provided by the seller for your records.

REQUIRED NOTICE FOR DELAY

Performance on the Construction Contract between (“Contractor”) and (“Owner”) dated (“Contract”) will be delayed beyond the following deadline:

Specified performance goal: .

Agreed date for completion: .

The delay was caused by:

New Proposed Deadlines:

Work shall resume on: and shall be completed on .

I have received this notice of delay and agree with the new deadline.

OWNER:

Signature:

Print Name:

Date:

Enter text✕

What this Contract Is and when it applies

A Contract for Proportionate Value of Labor Services, Products, and Materials is a written agreement that allocates payment, responsibilities, and deliverables between a service provider and a purchaser when work, goods, and materials contribute jointly to a project. It specifies how labor hours, supplied products, and materials are measured and valued so compensation is proportionate to each party's contribution. Typical uses include partial-project billing, phased construction work, renovation jobs, manufacturing orders with mixed supply and labor, and subcontractor settlements where amounts must be apportioned precisely.

Why a clear proportionate-value contract matters

This contract reduces disputes by documenting how labor, products, and materials are valued and paid, creating predictable outcomes for invoicing and change orders.

Why a clear proportionate-value contract matters

Who typically completes this contract

Each signer should represent a contracting party with authority to bind payment or performance obligations.

  • General contractors and subcontractors allocating partial payments for phased work.
  • Suppliers and manufacturers combining product delivery with installation services.
  • Commercial clients and property owners approving staged invoices tied to materials and labor.

Core elements to include in a professional proportionate-value contract

A well-drafted contract names parties, describes scope, sets valuation methods, provides payment terms, assigns risk, and includes execution and amendment rules.

Parties

Full legal names and entity types for each contracting party, with contact details and representative authorized to sign.

Scope

Detailed description of labor, products, and materials included, including specifications, quantities, and deliverables tied to each measured item.

Valuation Method

Precise method for calculating proportionate value (unit rates, hourly rates, material markups, percentage allocation, or formula-based calculations).

Payment Terms

When invoices are due, retainage or holdbacks, progress payments, and consequences for late payment or disputed charges.

Change Orders

Process for approving scope or pricing changes, required documentation, and timing for revised proportionate calculations.

Dispute Resolution

Governing law, venue, and any agreed escalation path such as mediation or arbitration to resolve valuation disputes.

Step-by-step: filling and executing the contract

Follow these steps in order to prepare, review, and finalize the proportionate-value agreement.

  • 01
    Prepare: Assemble scope, prices, and supporting estimates.
  • 02
    Calculate: Apply the agreed valuation formula to each line item.
  • 03
    Review: Have legal or project manager confirm terms and risks.
  • 04
    Sign: Execute with authorized signatures and retain completed copies.

Digitally customizing the contract workflow

Configure online fields and signer order to match your approval chain and to reduce manual steps.

Field Configuration
Signer Order Set parties and sequence: preparer → approver → payer.
Conditional Fields Enable conditional visibility for change orders and retainage fields.
Calculation Fields Use formula fields for automatic proportionate totals.
Authentication Require email, SMS code, or stronger signer verification as needed.

Digital signing and platform requirements

Ensure the chosen platform can export signed documents with an audit report and store records according to retention rules.

  • Document Formats: PDF, DOCX supported.
  • Signer Verification: Email and SMS codes; KBA where required.
  • Audit Trail: Timestamps, IP, and event log.

Where to send and file completed contracts

Routing and storage depend on project controls and legal needs; designate recipients and final repository before signing.

  • Primary Recipient: Client or payer for payment authorization.
  • Contractor Copy: Project file and accounting.
  • Legal Archive: Company legal team or centralized contract repository.
  • External Filing: Attach to project management or permit submission if required.

Key timing and deadlines to include

Specify dates for deliverables, invoice submission, payment windows, and dispute notice periods to trigger contract remedies.

Effective Date:

Start of obligations (MM/DD/YYYY).

Milestone Dates:

Dates tied to payment triggers or completion.

Invoice Deadline:

When invoices must be presented for payment.

Payment Due:

Net terms such as Net 30 after invoice.

Dispute Notice:

Days to notify counterparty of valuation disputes.

Practical examples of when proportionate valuation is applied

These brief scenarios show common applications and how the contract clarifies payment allocation.

Renovation Project

A homeowner hires a contractor for partial remodels and separate appliance supply

  • Contractor documents labor hours and material invoices
  • The contract ties payments to completed rooms, preventing disputes over mixed supply and installation charges.

Manufacturing Plug-in

A supplier provides parts and on-site installation for equipment upgrades

  • Parties agree a per-unit material price plus hourly installation rate
  • Payment is split by delivered units and recorded labor to allocate final invoice proportionately.

Security and compliance basics for electronic contracts

Encryption: TLS 1.2/1.3, AES-256
Certifications: SOC 2 Type II
Healthcare: HIPAA (BAA required)
Regulatory: ESIGN, UETA compliant
Access Control: SSO and MFA available
Accessibility: WCAG 2.0 AA

Common legal and financial risks to avoid

Unclear Valuation: Voidable
Missing Signatures: Unenforceable
Late Invoicing: Penalty exposure
Tax Exposure: Reporting issues
HIPAA Violations: Civil fines
Improper Notarization: Invalid acknowledgement

Frequent preparation mistakes and how they cause delays

  • Vague scope descriptions that omit quantities or deliverable standards, causing disagreements during invoice review and prolonging payment cycles.
  • Using unclear or inconsistent valuation formulas that leave too much discretion to the reviewer and increase dispute frequency and administrative burden.
  • Failing to document change orders promptly, producing retroactive claims and withheld payments while parties attempt to reconcile records.
  • Collecting signatures without an audit trail or explicit consent to e-signatures, which can lead to costly re-execution or litigation over validity.

Typical eSignature vendor comparison for signing and managing this contract

Comparison of common vendor attributes and starting prices; signNow is listed first per package structures and the table uses published starting prices for annual billing tiers.

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 Varies Varies Varies Varies
Bulk Send Yes (Premium) Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA) Yes (BAA available) Yes (BAA available) No No

Frequently asked questions about completing and enforcing the contract

Answers to common concerns about validity, signing, notarization, and disputes for proportionate-value agreements.


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