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Contract Terms and Conditions

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Terms and Conditions of General Construction Contract

Section I. DEFINITIONS AND TERMINOLOGY

A. Defined Terms—Wherever used in the Contract Documents, the terms listed below will have the meanings ascribed which are applicable to both the singular and the plural thereof.

1. Abandonment—A willful decision by the contractor suspending the progress of the work for an uninterrupted period of three (3) or more consecutive days (excluding Saturdays, Sundays, or national holidays) not requested by the owner or the engineer and not caused by natural phenomena or acts of God.

2. Addenda—Written or graphic instruments issued prior to the opening of bids that clarify, correct, or change the Bidding Requirements or the Contract Documents.

3. Agreement—The written instrument which is evidence of the covenant between owner and the contractor covering the work.

4. Application for Payment—The form acceptable to the owner which is to be used by the contractor during the course of the work in requesting progress or final payments and which is to be accompanied by such supporting documentation as is required by the contract documents.

5. Asbestos—Any material that contains more that one percent (1%) asbestos fiber and is friable or is releasing asbestos fibers into the air above current action levels established by the United States Occupational Safety and Health Administration.

6. Bid—The offer or proposal of a bidder submitted on the prescribed form setting forth the prices for the work to be performed.

7. Bidding Documents—The bidding requirements and the proposed contract documents (including all addenda issued prior to receipt of bids).

8. Bidding Requirements—The advertisement or invitation to bid, instructions to bidders, bid security form, if any, and the bid form with any supplements.

9. Bonds—Bid performance and payment bonds and other instruments of security.

10. Change Order—A document recommended by the project engineer which is signed by the contractor and the owner authorizing an addition, deletion, or revision in the work or an adjustment in the contract price or the contract time, issued on or after the effective date of the agreement.

11. Claim—A demand or assertion by the owner or the contractor seeking an adjustment of contract price or contract time, or both, or other relief with respect to the terms of the contract.

12. Contract—The entire and integrated written agreement between the owner and the contractor concerning the work.

13. Contract Documents—The contract documents establish the rights and obligations of the parties and include the agreement, addenda, contractor’s bid, notice to proceed, bonds, general terms and conditions, supplementary terms and conditions, specifications, and drawings.

Section II. PRELIMINARY MATTERS

A. Delivery of Bonds—When the contractor delivers the executed agreements to Horry County, the contractor shall also deliver to the owner such bonds as the contractor shall be required to furnish.

B. Copies of Documents—The owner shall furnish to the contractor up to ten copies (10) of the contract documents.

C. Commencement of Contract Time; Notice to Proceed—The contract time will commence to run on the thirtieth (30th) day after the effective date of the agreement or, if a notice to proceed is given, on the day indicated in the notice to proceed.

Project Information

Project Name:

Owner:

Contractor:

Effective Date:

Notice to Proceed Date:

Section III. CONTRACT DOCUMENTS: INTENT, AMENDING, REUSE

A. Intent—It is the intent of the contract documents to describe a functionally complete project to be constructed in accordance with the contract documents.

B. Reference Standards—Reference to standards, specifications, manuals, codes, laws, or regulations shall mean the standard in effect at the time of opening of bids.

Section IV. AVAILABILITY OF LANDS; SUBSURFACE AND PHYSICAL CONDITIONS; REFERENCE POINTS

A. Availability of Lands—The owner shall furnish the site.

B. Subsurface and Physical Conditions—Reports and drawings identify subsurface conditions and existing structures.

C. Differing Subsurface or Physical Conditions—The contractor shall notify the owner and engineer in writing within twenty-four hours after becoming aware of differing conditions.

D. Underground Facilities—The contractor shall be responsible for locating and protecting underground facilities.

E. Reference Points—The owner shall provide reference points necessary to enable the contractor to proceed with the work.

F. Hazardous Environmental Conditions at Site—The contractor shall notify the owner and engineer immediately if hazardous environmental conditions are encountered.

Section V. BONDS AND INSURANCE

A. Performance, Payment and Other Bonds—The contractor shall furnish performance and payment bonds.

B. Licensed Sureties and Insurers—All bonds and insurance required shall be purchased and maintained by the contractor.

C. Certificates of Insurance—The contractor shall deliver certificates of insurance to the owner.

D. Contractor’s Liability Insurance—The contractor shall purchase and maintain liability insurance appropriate for the work.

Insurance Coverage Checklist

Workers’ compensation

Employee bodily injury coverage

Personal injury liability coverage

Builder risk insurance

Completed operations insurance

Section VI. CONTRACTOR’S RESPONSIBILITIES

A. Supervision and Superintendence—The contractor shall supervise, inspect, and direct the work competently and efficiently.

B. Labor; Working Hours—All work at the site shall be performed during regular working hours unless otherwise consented to in writing.

C. Services, Materials, and Equipment—The contractor shall provide all services, materials, equipment, and incidentals necessary for the work.

Contact Person / Superintendent:

Phone:

Email:

Section VII. OTHER WORK

A. Related or Unrelated Work at Site—The owner may perform other work related or unrelated to the project at the site.

B. Coordination—Horry County shall have sole authority and responsibility for coordination unless otherwise provided.

Section VIII. OWNER’S RESPONSIBILITIES

A. Communications to Contractor—Except as otherwise provided, the owner shall issue communications through the engineer.

B. Furnishing Data—The owner shall promptly furnish the data required under the contract documents.

C. Prompt Payment—The owner shall make payments promptly when due.

Section IX. ENGINEER’S STATUS DURING CONSTRUCTION

A. The owner’s Representative—The engineer will be the owner’s representative during construction.

B. Site Visits by Engineer—The engineer will make site visits at regular intervals appropriate to the stages of construction.

Engineer Name:

Engineering Firm:

Section X. CHANGES IN THE WORK; CLAIMS

A. Authorized Changes in the Work—The owner may order additions, deletions, or revisions in the work by written amendment, change order, or work change directive.

Change Order Reference:

Section XI. COST OF THE WORK; CASH ALLOWANCES; UNIT PRICE WORK

A. Cost of the Work—All costs shall be computed pursuant to the Horry County Procurement Code.

Section XII. CHANGES TO CONTRACT PRICE; CHANGES TO CONTRACT TIME

A. Change of Contract Price—The contract price may only be changed by change order or written amendment.

B. Change of Contract Time—The contract time may only be changed by change order or written amendment.

Requested Time Extension (Days):

Section XIII. TESTS AND INSPECTIONS; CORRECTION, REMOVAL OR ACCEPTANCE OF DEFECTIVE WORK

A. Notice of Defects—Prompt notice of defective work will be given to the contractor.

B. Access to Work—The owner, engineer, consultants, and governmental agencies will have access to the site and the work.

Inspection Notes:

Section XIV. PAYMENTS TO CONTRACTOR AND COMPLETION

A. Schedule of Values—The schedule of values will serve as the basis for progress payments.

B. Progress Payments—Applications for payment shall be submitted as required.

Contract Price:

Retainage (%):

Date of Substantial Completion:

Final Completion Date:

Section XV. SUSPENSION OF WORK AND TERMINATION

A. The owner may Suspend Work—At any time and without cause, the owner may suspend the work or any portion thereof.

B. The owner may Terminate For Cause—Events may justify termination for cause.

C. The owner may Terminate for Convenience—The owner may, without cause, elect to terminate the contract.

Section XVI. DISPUTE RESOLUTION

A. In General—Dispute resolution procedures are set forth in the Horry County Procurement Code.

Dispute Description:

Section XVII. MISCELLANEOUS

A. Giving Notice—Whenever any provision requires written notice, it will be deemed validly given if delivered in person or by registered/certified mail.

B. Computation of Time—Time periods exclude the first day and include the last day, subject to legal holidays.

C. Cumulative Remedies—The duties and obligations imposed by these general conditions are in addition to other rights and remedies.

D. Survival of Obligations—Representations, indemnifications, warranties, and guarantees survive final payment and completion.

E. Controlling Law and Venue—This contract is governed by the laws of the State of South Carolina.

Owner Signature:

Date:

Contractor Signature:

Date:

Engineer Signature:

Date:

Enter text✕

What the Contract Terms and Conditions Are

A Contract Terms and Conditions document sets out the rights, duties, and remedies between parties entering into a commercial agreement. It defines scope of work, payment terms, deliverables, warranties, liability limits, termination rights, confidentiality, and dispute resolution procedures. Properly drafted terms reduce ambiguity, allocate risk, and provide the operational rules that govern performance and enforcement of the contract in domestic and cross-border transactions.

Why Clear Terms Matter for Enforceability and Risk Control

Well-structured terms create predictable obligations, support enforceability under ESIGN and UETA frameworks, and reduce litigation risk by clarifying expectations and remedies in advance.

Why Clear Terms Matter for Enforceability and Risk Control

Typical Users and Roles

Organizations and individuals who prepare, approve, or sign contracts use Terms and Conditions to manage relationships and legal exposure.

  • Procurement and purchasing teams who need standardized supplier terms for repeat buys and vendor onboarding.
  • Legal and contract managers who draft, review, and negotiate clauses to protect organizational interests.
  • Sales and account teams who present client-facing agreements and need consistent commercial terms.

Use by multiple departments encourages version control, consistency, and an audit trail for signatory authority and approvals.

Essential Components of Professional Terms and Conditions

A professional contract contains modular clauses that address performance, payment, risk allocation, and administration so parties can identify obligations quickly and manage compliance throughout the relationship.

Scope of Work

Describes duties, deliverables, milestones, and acceptance criteria so performance expectations are unambiguous.

Payment Terms

Specifies pricing, invoicing schedule, late fees, taxes, and any escrow or retainage terms to avoid billing disputes.

Term and Termination

Defines contract duration, renewal mechanics, termination for convenience and for cause, and required notices.

Liability & Indemnity

Allocates financial responsibility for losses, sets caps on damages, and details indemnification procedures.

Confidentiality & IP

Protects trade secrets, assigns intellectual property where appropriate, and limits permitted disclosures.

Dispute Resolution

Specifies governing law, venue, arbitration or court procedures, and any requirements for mediation or escalation.

Required Information and Data Elements

Parties: Full legal names
Addresses: Street, city, state, ZIP
Effective Date: MM/DD/YYYY
Payment Details: Amount, currency, schedule
Signatory Names: Name and title
Governing Law: Selected state

Step-by-Step: Preparing and Executing Contract Terms and Conditions

Follow a consistent sequence from drafting to signature to ensure completeness, authorization, and a verifiable audit trail.

  • 01
    Draft: Assemble clause library and populate party-specific details.
  • 02
    Review: Have legal and business teams validate risk allocation and responsibilities.
  • 03
    Authorize: Obtain internal approvals and confirm signatory authority limits.
  • 04
    Execute: Use an eSignature solution with an audit trail and retention controls.

Customizing an Online Workflow for These Terms

Configure field types, routing order, and signer authentication to match your internal approval process and compliance needs.

Field Configuration
Signature Type Electronic signature field with date
Authentication Email + SMS code or KBA for higher assurance
Routing Sequential or parallel signer order
Retention Automatic export to secure storage after execution

Delivery Channels and Technical Considerations

Choose distribution channels and integrations that match how stakeholders receive and store contracts.

  • Email Delivery: Send signed copies via secured email with audit certificate
  • Cloud Storage: Archive executed files to enterprise storage (Box, Google Drive, AWS)
  • Systems Integration: Integrate with CRM/ERP (Salesforce, NetSuite, Microsoft 365)

Ensure the platform supports PDF, DOCX imports/exports, audit trails, and configurable retention to meet legal and operational requirements.

Where to Send or File the Contract After Execution

Establish a single destination for final executed copies so teams can locate terms for performance, audit, and dispute resolution.

  • Customer/Counterparty: Provide a fully executed copy to all signers for their records.
  • Contract Repository: Store master copy in a centralized, access-controlled repository.
  • Finance: Send payment-related pages to accounts payable for processing.
  • Legal: Retain an editable source copy and redline history for future amendments.

Key Deadlines and Timing Considerations

Track dates that affect obligations and compliance, such as effective date, renewal windows, notice periods, and payment deadlines.

Effective Date:

Use the contract Effective Date field (MM/DD/YYYY).

Payment Due:

Record payment due dates and any late-payment grace period.

Renewal Notice:

Set calendar reminders for automatic renewal opt-outs.

Termination Notice:

Observe the specified notice period for termination for convenience.

Performance Milestones:

Document delivery and acceptance milestone dates.

Typical Contract Lifecycle Milestones

A sequential milestone view helps teams manage execution, performance, and closeout responsibilities across the contract term.

01

Drafting Complete

All parties agree on clause language and attachments.

02

Internal Approvals

Legal and finance approvals secured before signature.

03

Execution

All authorized signatories complete signatures and dates.

04

Post-Execution Review

Distribute executed copies and activate operational tasks.

Common Errors to Avoid When Preparing Terms

  • Using vague consideration language that invites later disputes over payment or scope.
  • Failing to confirm signatory authority, which can render a signature voidable.
  • Omitting notice addresses and methods, causing disputes about when notices are effective.
  • Neglecting integration of attachments or exhibits, leaving material terms undefined.

Consequences of Incorrect or Incomplete Terms

Enforceability Risk: Ambiguous terms may be construed against the drafter
Financial Exposure: Unlimited liability may expose the organization to large damages
Regulatory Noncompliance: Missing required disclosures can trigger fines or rescission
Tax Consequences: Incorrect payment terms can affect withholding or reporting
Operational Delay: Unclear milestones cause missed deadlines and penalties
Dispute Costs: Litigation or arbitration increases legal fees

Practical Examples of Contract Terms in Use

These short case summaries illustrate how terms function in routine scenarios and the outcomes when clauses are applied correctly.

Optica Ventures

A venture services firm standardized payment milestones across clients to reduce disputes.

  • Standardized milestones improved invoicing consistency.
  • The firm reduced collections time and clarified acceptance testing, lowering post-delivery disputes and administrative overhead.

Martin Properties

A real estate operator added state-specific termination language for tenant leases.

  • Lease termination aligned with state law.
  • This prevented inconsistent enforcement across its portfolio and reduced eviction litigation by clarifying notice procedures.

Who Can Sign and When Their Signature Is Valid

Authorized Officer

A corporate officer with delegated authority signs on behalf of the entity; internal delegation documents or board resolutions often govern authority limits and should be confirmed before execution.

Agent or Representative

An agent with written power of attorney or contract-specific authorization may sign; include the agent's title and attach authorization to avoid later challenges.

eSignature Vendor Comparison for Executing Contract Terms and Conditions

Comparison of common platform characteristics and starting prices; signNow appears first as a column entry per listing conventions.

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 by plan Varies by plan Varies by plan Varies by 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 Varies Varies

Frequently Asked Questions About Contract Terms and Conditions

Answers to common questions about drafting, signing, and enforcing contract terms, focusing on U.S. legal frameworks and practical execution.


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