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Demolition Contract for Contractor

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Demolition Contract

THIS DEMOLITION 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: Demolition is the process of using wrecking machinery (including excavators, skid steers, front-end loaders, dozers, cranes, concrete crushing units, trucks and trailers) to raise, lower, crib, underpin, demolish and move or remove structures, including their foundations. Demolition services include undermining buildings, razing building walls, loading materials, sorting steel, compound abatement, tearing out old work to make way for new work (including concrete reinforcement with wire mesh and rebar, multilayer roofing, trees, stumps, landscaping and sprinklers and mortar based tile floors and walls) and removing asbestos. Contractor shall provide all necessary demolition labor and materials, and perform all demolition services described above and/or as set forth in the plans and specifications signed by both Owner and Contractor (“Project”). Such plans and specifications are hereby made a part of this Contract and may contain pictures, diagrams or measurements of the work area 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 plans or specifications, no landscaping, finish grading or filling 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 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:

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. 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.

12. 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, exist 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 Missouri.

13. 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.

14. 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.

15. 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

OWNER:

Signature

Print Name

Date


License Number


Name and Address of License Holder

STATUTORY NOTICES TO OWNER:

NOTICE TO OWNER

FAILURE OF THIS CONTRACTOR TO PAY THOSE PERSONS SUPPLYING MATERIAL OR SERVICES TO COMPLETE THIS CONTRACT CAN RESULT IN THE FILING OF A MECHANIC'S LIEN ON THE PROPERTY WHICH IS THE SUBJECT OF THIS CONTRACT PURSUANT TO CHAPTER 429, RSMO. TO AVOID THIS RESULT YOU MAY ASK THIS CONTRACTOR FOR "LIEN WAIVERS" FROM ALL PERSONS SUPPLYING MATERIAL OR SERVICES FOR THE WORK DESCRIBED IN THIS CONTRACT. FAILURE TO SECURE LIEN WAIVERS MAY RESULT IN YOUR PAYING FOR LABOR AND MATERIAL TWICE.

CONSENT OF OWNER

CONSENT IS HEREBY GIVEN FOR FILING OF MECHANIC'S LIENS BY ANY PERSON WHO SUPPLIES MATERIALS OR SERVICES FOR THE WORK DESCRIBED IN THIS CONTRACT ON THE PROPERTY ON WHICH IT IS LOCATED IF HE IS NOT PAID.


(date)


(owner's signature)

SECTIONS 436.350 TO 436.365 OF MISSOURI REVISED STATUTES PROVIDE YOU WITH CERTAIN RIGHTS IF YOU HAVE A DISPUTE WITH A CONTRACTOR REGARDING CONSTRUCTION DEFECTS. EXCEPT FOR CLAIMS FILED IN SMALL CLAIMS COURT, IF YOU HAVE A DISPUTE WITH A CONTRACTOR, YOU MUST DELIVER TO THE CONTRACTOR A WRITTEN CLAIM OF ANY CONSTRUCTION CONDITIONS YOU ALLEGE ARE DEFECTIVE AND PROVIDE YOUR CONTRACTOR THE OPPORTUNITY TO MAKE AN OFFER TO REPAIR OR PAY FOR THE DEFECTS. YOU ARE NOT OBLIGATED TO ACCEPT ANY OFFER MADE BY THE CONTRACTOR. READ THIS NOTICE CAREFULLY. THERE ARE STRICT DEADLINES AND PROCEDURES UNDER SECTIONS 436.350 TO 436.365 WHICH MUST BE OBEYED IN ORDER TO PRESERVE YOUR ABILITY TO FILE A LAWSUIT. OTHER THAN REPAIRS TO WORK DONE BY THE CONTRACTOR THAT ARE NECESSARY TO PROTECT THE LIFE, HEALTH, OR SAFETY OF PERSONS LIVING IN A RESIDENCE, OR TO AVOID ADDITIONAL SIGNIFICANT AND MATERIAL DAMAGE TO THE RESIDENCE PURSUANT TO SUBSECTION 10 OF SECTION 436.356, YOU MAY NOT INCLUDE IN CLAIMS AGAINST YOUR CONTRACTOR THE COSTS OF OTHER REPAIRS YOU PERFORM BEFORE YOU ARE ENTITLED TO FILE A LAWSUIT UNDER SECTIONS 436.350 TO 436.365.

* Optional notice required only for contracts to be paid from insurance proceeds:

You may cancel this contract at any time before midnight on the fifth business day after you have received written notification from your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy. See attached notice of cancellation form for an explanation of this right.

NOTICE OF CANCELLATION

If you are notified by your insurer that all or any part of the claim or contract is not a covered loss under the insurance policy, you may cancel the contract by mailing or delivering a signed and dated copy of this cancellation notice or any other written notice to at at any time prior to midnight on the fifth business day after you have received such notice from your insurer. If you cancel, any payments made by you under the contract, except for certain emergency work already performed by the contractor, will be returned to you within ten business days following receipt by the contractor of your cancellation notice.

I HEREBY CANCEL THIS TRANSACTION


(date)


(insured's signature)

* Optional notice required only for home solicitation sales:

NOTICE OF CANCELLATION


(Date of transaction must be filled in at time of sale by seller.)

If this agreement was solicited at your residence and you do not want the goods or services, you may cancel, without further obligation, this agreement by mailing a notice to the seller at the address as shown below, within 3 business days following the above date. You shall return the goods to seller in substantially the same condition as when you obtained them. Seller will then cancel all contracts and negotiable instruments executed by you and return any property given by you to seller within 10 days from date of transaction. If seller does not pick up the purchased goods within 20 days from date of your cancellation, you may retain or dispose of the goods without any further obligation. The notice must be mailed to: . (Name and mailing address of seller must be filled in at time of sale.)

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What the Demolition Contract for Contractor Covers

A Demolition Contract for Contractor is a written agreement that defines the scope, timing, responsibilities, and payment terms for demolition work performed by a licensed contractor. It allocates risk for site preparation, hazardous-material handling, utility disconnection, disposal, and restoration. Typical clauses address scope of work, permits and compliance, insurance and indemnity, change orders, payment schedule, site access, safety requirements, and warranties. The document creates enforceable obligations between owner and contractor and serves as the primary record for permits, inspections, liens, and dispute resolution.

Why a Clear Demolition Contract Matters

A precise contract reduces disputes, ensures regulatory compliance, and clarifies financial and safety responsibilities between owner and contractor. It protects both parties and simplifies permitting, inspection, and insurance processes.

Why a Clear Demolition Contract Matters

Who Typically Prepares and Signs This Agreement

The agreement is prepared by project owners or contracting firms and executed by licensed demolition contractors before work begins.

  • Property owners and developers who need controlled site clearance and risk allocation prior to sale or redevelopment.
  • General contractors or demolition subcontractors responsible for performance, compliance, and crew management.
  • Municipal or government project managers overseeing public demolition and ensuring permit and environmental controls.

Accurate preparation and authorized signing ensure permits, insurance claims, and payment processes proceed without administrative delay.

Core Sections to Include in a Professional Demolition Contract

Include clear, enforceable terms that cover technical, commercial, and compliance aspects of the demolition project so parties can rely on a single definitive record.

Scope of Work

Define precise limits of demolition, including structures, subsurface features, selective vs full removal, and required site restoration to avoid scope disputes.

Permits & Approvals

Specify which party secures permits, inspections, and utility disconnects and identify deadlines and permit numbers where available.

Hazardous Materials

Address asbestos, lead, and contaminated soils procedures, required surveys, required abatement protocols, and chain-of-custody for waste.

Schedule & Delays

Set start/completion dates, milestones, weather or permit-related extensions, and notice requirements for unforeseen conditions.

Payment Terms

State contract price, progress payments, retainage, mobilization fees, final payment conditions, and procedures for change orders.

Insurance & Indemnity

Specify minimum liability, workers' compensation, pollution liability, additional insured status, and indemnity allocation for third-party claims.

Step-by-Step: Completing the Contract Before Work Starts

Follow these sequential steps to ensure the contract is complete, enforceable, and aligned with permit and insurance requirements.

  • 01
    Confirm Parties: Verify legal entity names and authorized signers for both owner and contractor.
  • 02
    Define Scope: Attach plans, demolition limits, and site photos as exhibits.
  • 03
    Allocate Permits: Document who obtains permits and the expected permit timeline.
  • 04
    Execute Signatures: Both parties sign and date the final contract and retain countersigned copies.

Setting Up a Digital Review and Signature Workflow

Configure a clear online workflow so all reviewers and signers receive forms, attachments, and visibility into approvals.

Field Configuration
Document Format Upload PDF or DOCX with exhibits flattened for signing.
Signer Order Set owner then contractor signer order for conditional approvals.
Authentication Use email plus SMS code or identity verification for high-value projects.
Audit Trail Capture timestamps, IP addresses, and a certificate of completion.

Typical Routing From Draft to Signed Contract

A standard routing sequence reduces rework and ensures required parties see the final terms before signature.

  • Draft: Project manager uploads draft with exhibits and annotations.
  • Internal Review: Legal and safety review for insurance, indemnity, and hazardous-material clauses.
  • External Approval: Owner reviews and proposes edits or accepts terms.
  • Signing: Final signature by authorized signers and distribution of executed copy.

Digital Signing and File Formats to Use

Use PDF or DOCX that preserve page layout and attached exhibits for reliable signing and recordkeeping.

  • Formats: PDF, DOCX
  • Integrations: Connect to Google Workspace or Microsoft 365 for storage.
  • Authentication: Email, SMS code, or identity verification

Ensure the chosen platform provides an audit trail and secure storage compatible with your compliance needs and permit records.

Common Timeframes and Deadlines to Track

Track permit lead times, inspection windows, insurance effective dates, and payment milestones to avoid project delays.

Permit Lead Time:

Allow 2–8 weeks depending on jurisdiction and specialty reviews.

Start Date Notice:

Provide notice 5–10 business days before mobilization.

Progress Payments:

Tie payments to clear milestones such as mobilization and substrate clearance.

Final Inspection:

Schedule final inspection after debris removal and site grading.

Claims Notice:

Require written notice of claims within 10–30 days of discovery.

Key Project Milestones From Contract to Closeout

Numbered milestones help coordinate permits, mobilization, removal, and handover in a clear sequence.

01

Contract Execution

Signatures exchanged and insurance certificates provided to project owner.

02

Permits Secured

All required demolition and environmental permits issued and posted.

03

Mobilization

Crew arrives, protection measures installed, utilities verified disconnected.

04

Demolition & Disposal

Structure removed, hazardous materials abated, debris transported to permitted facilities.

Essential Administrative and Compliance Data to Include

Party Names: Full legal names
License Numbers: Contractor license ID
Insurance Limits: Liability and workers' comp
Permit Numbers: Local demolition permits
Hazard Reports: Asbestos/lead survey
Site Address: Street, city, state, ZIP

Common Legal and Financial Risks if the Contract Is Incorrect

Breach Liability: Damages for incomplete or defective performance
Regulatory Fines: OSHA or environmental citations for noncompliance
Insurance Denial: Coverage denial for inconsistent contract terms
Lien Exposure: Unpaid subcontractor liens against property
Delay Costs: Liquidated damages or extended mobilization fees
Dispute Expenses: Attorney fees and arbitration costs

Frequent Pitfalls to Avoid When Preparing the Contract

  • Vague scope descriptions that lead to disagreement on what is included and trigger change orders.
  • Missing permit responsibility language resulting in duplicated fees or halted work during inspections.
  • Insufficient insurance limits or missing additional-insured endorsements for owners and lenders.
  • Failing to document hazardous-materials surveys and abatement procedures before mobilization.

Practical Tips to Improve Contract Accuracy and Execution

Adopt consistent templates, attach technical exhibits, and confirm signatory authority to reduce administrative friction.

Use Exhibits
Attach site plans, photos, and the demolition scope as numbered exhibits to avoid ambiguity and support inspections.
Require Certificates
Obtain and review insurance certificates and permit approvals before allowing mobilization on site.
Lock Payment Triggers
Define objective milestones for progress payments and clearly describe retainage release conditions.
Audit Trail
Keep a complete signing and change-order history to support claims, audits, or insurance reviews.

Examples: How Contracts Vary by Project Type

Two short examples illustrate typical contract adaptations for different demolition contexts.

Urban Site Redevelopment

A downtown commercial site required sidewalk protection and traffic control

  • Contractor provided temporary shoring and nightly cleanup
  • The contract included strict noise and dust limits, city permit obligations, and staged progress payments tied to street closures and inspections.

Residential Structure Demolition

A single-family home demolition required an asbestos survey and disconnects

  • Owner contracted for salvage of specified fixtures
  • Agreement assigned permit responsibility to contractor and included a hazard-abatement exhibit and final grade restoration obligation.

eSignature Pricing Snapshot for Contract Execution Platforms

Compare basic plan pricing and common compliance features to choose a platform that fits permit, insurance, and internal audit requirements.

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 Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions About the Demolition Contract

Answers to common issues contractors and owners encounter during contract preparation, signing, and closeout.


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