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CONSTRUCTION CONTRACT
THIS CONSTRUCTION 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. LIST OF DOCUMENTS TO BE INCORPORATED INTO THIS CONTRACT:
Appendix A – Oregon Construction Contractors Board Recommended Contract Addendum to
Satisfy Contract Terms Requirement- OAR 812-012-0110
Appendix B – Acknowledgment of Written Offer of Warranty and Indication of Acceptance
or Rejection of Warranty
Appendix C – Maintenance Information and Schedule
The above mentioned Exhibits are hereby incorporated in and made part of this Contract.
2. SCOPE OF WORK: Contractor, who is licensed by the Oregon Construction Contractors
Board, shall provide all labor and materials, and perform all work necessary for the
completion of the residence, structure, or improvements as described in the drawings a nd
specifications signed by both Owner and Contractor (“Project”) and more particularly
described as
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, material s to be
used, and the equipment to be used or installed.
3. 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 usua l 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 specificat ions, no
landscaping, finish grading, filling or excavation is to be performed at the Work Site by the
Contractor.
4. 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.
5. 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 include d as part of
the Project price.
6. 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
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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.
7. INSURANCE: Contractor shall maintain general liability, workers compensation and builder's
risk insurance.
8. 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 locat ion
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 tha t
affect the Work Site.
9. 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 const ruction 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 Contrac tor shall
estimate the cost thereof and Owner shall pay the actual cost whether or not i t is in excess of the
estimated cost.
10. 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.
11. 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 paym ent is not made
when due, Contractor may suspend work on the job until such time as all payments due have bee n
made without breach of the Contract pending payment or resolution of any dispute. Owner agree s
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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.
12. 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 Contra ctor 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 t he
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.
13. 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.
14. INTERPRETATION: (a) Interpretation of Documents. 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.
(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 exi sts
between the parties. This Contract may only be modified only by a written agreeme nt signed by
both parties.
(c) Governing Law. This Contract shall be interpreted and governed in accordance with the
laws of the State of Oregon.
15. 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 part y in such
proceeding shall be entitled to recover reasonable attorney fees and court costs.
16. 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 pe rformed 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.
17. WARRANTY: Contractor's warranty shall be limited to defects in materials and workmanship
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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 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
CCB License Number
Name of License Holder
Address of License Holder
Phone Number of License Holder
OWNER:
Signature
Print Name
Address
Date
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APPENDIX A
Contract Terms Addendum 03/18/08
CCB Recommended Contract Addendum to Satisfy
Contract Terms RequirementOAR 812-012-0110
1. Summary of Required Construction Contractor Board (CCB) Consumer Notices
Oregon law requires construction contractors to give homeowners certain notices before and during a
construction project. This summary explains what they mean. (See USLF form OR-0049-CPK for a copy
of the notices). It is important to read and understand these forms. a. Consumer Protection Notice – This information explains contractor licensing standards, bond
and insurance requirements, steps consumers can take for successful construction project and what
to do if problems occur.b. Information Notice to Owner About Construction Liens – Contractors must give
homeowners this notice any time the contract price is more than $1,000. It is given at the time a
written contract is signed or if a verbal contract within five working days. The notice explains the
construction lien law. It includes steps homeowners can take to protect their property from a
construction lien.
c. Notice of Procedure – The notice explains what a homeowner must do before beginning an
arbitration or court action against a contractor for construction defects. (This procedure is separate
from the Construction Contractors Board (CCB) Dispute Resolution process) .
2. Explanation of Property Owner’s Rights a. Consumers have the right to receive the products and services agreed to in the contract.
b. Consumers have the right to resolve disputes through means outlined in the contract.
c. Consumers have the right to file a complaint with the CCB. Any arbitration or mediation
clauses in the contract may prevent the CCB from processing.
3. Arbitration/Mediation Clause a. An “arbitration or mediation clause” is a written portion of a contract designed to settle how the
parties will solve disputes that may arise during, or after the construction project. Arbitration
clauses are very important. They may limit a consumer’s ability to have their dispute resolved by
the Oregon court system or the Oregon Construction Contractors Board.
b. The following box should be checked by the contractor:
This contract contains an arbitration or mediation clause.
This contract DOES NOT contain an arbitration or mediation clause.
c. The Oregon Construction Contractors Board urges consumers to read and understand the entire
contract – including any arbitration clause before signing a construction contract. Consumers are
not obligated to accept contract terms proposed by the contractor, including arbitration provisions.
These may be negotiated to the satisfaction of both parties.
4. Written Warranty
Effective July 1, 2008
Buyer acknowledges that Contractor has offered a warranty against defects in materials and workmanship
to the purchaser. Purchaser has
accepted or rejected the offer of a warranty (see Appendix B in the
contract). __________________________ ________
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Purchaser Signature Date
5. Maintenance Schedule
Effective July 1, 2008
The buyer acknowledges receipt of the maintenance schedule (see Appendix C in the contract).
__________________________ ________ __________________________ ________Consumer Signature Date Contractor Signature Date
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APPENDIX B
Acknowledgment of Written Offer of Warranty and Indication of Acceptance or Rejection of Warranty
Pursuant to ORS 701.320 (which requires a written offer of warranty for contracts to construct
new residential structures or zero-lot-line dwellings, except for residential structures that are considered
manufactured dwellings), __________________________________, the first purchaser or owner of the
structure or dwelling hereby acknowledges that _________________________________ (Contractor) has
offered a warranty against defects in materials and workmanship to Purchaser.
Purchaser hereby accepts or rejects the offer of a warranty.
This the __ day of _______________, 20 _.
_________________________
Signature of Purchaser
____________________
Print or Type Name
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APPENDIX C
[INSERT MAINTENANCE INFORMATION AND SCHEDULE (including information on
moisture intrusion and water damage as required by ORS 701.335 for contracts to construct new
residential structures or zero-lot-line dwellings (See USLF form OR-0050-CPK as sample)) ]
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