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New Construction Document

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NEW CONSTRUCTION AGREEMENT

This New Construction Agreement ("Agreement") is made and entered into as of Effective Date: by and between Owner: and Contractor: . Owner and Contractor are each a "Party" and collectively the "Parties."

RECITALS

WHEREAS, Owner intends to construct new improvements on the property located at: (the "Property"); and

WHEREAS, Contractor represents that it possesses the necessary licenses, experience, equipment and personnel to perform the construction, procurement and related services described in this Agreement in accordance with the plans, specifications and schedule set forth or referenced herein; and

WHEREAS, the Parties desire to set forth the terms and conditions under which Contractor will perform the construction and Owner will compensate Contractor.

SCOPE OF WORK

Contractor shall furnish all labor, materials, equipment and supervision necessary to complete the new construction described below in accordance with the plans, specifications and schedules attached or incorporated by reference. Contractor shall obtain all permits and approvals required by applicable law unless otherwise expressly provided.

PAYMENT TERMS

Contract Sum (Total Price): $ . The Contract Sum is the total compensation for the complete performance of the Work as described in this Agreement, subject to additions and deductions for Change Orders executed in accordance with this Agreement.

Retainage: of each progress payment may be withheld as retainage until Substantial Completion unless otherwise agreed in writing.

Late Payment: Unpaid amounts shall accrue interest at the rate of per month (or maximum allowed by law), commencing thirty (30) days after invoice issuance. In addition, Owner shall be responsible for reasonable collection and legal costs incurred by Contractor in enforcing payment.

Final Payment: Final payment shall not be due until Contractor submits release of liens, reasonably satisfactory affidavits and waivers, and any other documentation reasonably requested by Owner to evidence completion and payment of subcontractors and suppliers.

TERM AND TERMINATION

Contract Commencement Date: . Estimated Substantial Completion Date: .

Term: This Agreement shall remain in effect from the Commencement Date until Final Completion, unless earlier terminated pursuant to this Section. The estimated dates are for scheduling only and shall not be deemed a material term except where Contractor or Owner has expressly guaranteed a completion date in writing.

Termination for Cause: Either Party may terminate this Agreement for material breach by the other Party if the breaching Party fails to cure the breach within days' written notice specifying the breach. Upon termination for cause by Owner, Contractor shall be paid for all Work performed to the date of termination, plus reasonable demobilization costs, less amounts reasonably withheld for Owner's actual damages.

Termination for Convenience: Owner may terminate this Agreement for convenience upon days' prior written notice. In the event of termination for convenience Contractor shall be entitled to payment for Work performed to the date of termination and for reasonable demobilization expenses, provided Contractor mitigates costs.

CONFIDENTIALITY

Each Party shall maintain as confidential and shall not disclose to any third party any non-public information disclosed by the other Party in connection with this Agreement, including pricing, proposals, technical specifications, trade secrets and business information ("Confidential Information"), except as required by law or as necessary to perform the Work. Obligations under this Section shall survive termination of this Agreement for a period of three (3) years. The receiving Party may disclose Confidential Information to its employees, agents, subcontractors and lenders on a need-to-know basis provided such persons are bound by confidentiality obligations no less restrictive than those herein.

GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of . Any action to enforce this Agreement shall be brought in the state or federal courts located in that State, and the Parties consent to personal jurisdiction and venue therein.

ENTIRE AGREEMENT

This Agreement, together with the plans, specifications, attachments and Change Orders executed in accordance with this Agreement, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior proposals, negotiations, representations and agreements, whether written or oral. No modification to this Agreement shall be effective unless in writing and signed by both Parties.

MISCELLANEOUS PROVISIONS

Insurance and Compliance: Contractor shall maintain insurance coverage and licensing required by law and shall provide certificates of insurance upon request. Contractor shall comply with all applicable laws, codes and regulations in performing the Work.

Notices: All notices required or permitted hereunder shall be in writing and delivered to the addresses set forth above by hand delivery, certified mail, return receipt requested, or nationally recognized overnight courier.

Owner

Party Printed Name:

By:

Date:

Contractor

Party Printed Name:

By:

Date:

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What the New Construction Document Is and Why It Matters

A New Construction Document is a written contract used to define responsibilities, deliverables, and terms for building projects. It typically includes the scope of work, technical specifications, construction schedule, payment terms, insurance and bonding requirements, permitting responsibilities, and change-order procedures. The document serves as the primary reference for owners, general contractors, subcontractors, and suppliers throughout project delivery, and it may be executed electronically when parties meet legal requirements for electronic records and signatures.

Primary Purpose and Practical Advantages

A clear New Construction Document reduces ambiguity, allocates risk, and creates an enforceable basis for payment, schedule, and quality control. It helps secure permits, manage change orders, and establish remedies for delays or defects while providing a single source of truth for inspections and closeout.

Primary Purpose and Practical Advantages

Typical Users and When They Interact with the Document

Stakeholders with operational, legal, or financial roles use the New Construction Document at different stages from pre-bid through final closeout.

  • Owner or Project Sponsor — Oversees scope, funding, and approvals; uses the document to authorize work and releases of funds.
  • General Contractor — Manages schedules, subcontractor coordination, and compliance with permit conditions and construction standards.
  • Subcontractors and Suppliers — Rely on the document for payment terms, scope boundaries, and change-order procedures.

Each party has distinct priorities—owners seek scope clarity, contractors seek payment protections, and lenders or regulators seek documentation for approvals and draws.

Core Sections to Include in a Professional Version

A comprehensive New Construction Document bundles contractual protections and operational details so parties can proceed with predictable outcomes and measurable milestones.

Scope of Work

Precise description of tasks, deliverables, and materials, including reference to drawings and specifications to avoid disputes over what is and is not included.

Schedule

Milestones, substantial completion, and interim deadlines with liquidated damages or milestone incentives where appropriate to align timing expectations.

Payment Terms

Contract value, retainage, progress-payment schedule, invoice requirements, and conditions for change-order pricing and final payment.

Change Orders

Process for submitting, pricing, approving, and documenting changes, including time and cost impacts and required supporting documentation.

Insurance & Bonds

Required coverages, limits, certificates, and performance/payment bond conditions to protect against contractor default or third-party claims.

Warranties & Remedies

Standards for defect correction, warranty periods, acceptance testing, and stepwise remedies for performance shortfalls or breach.

A Four-Step Workflow to Complete and Execute the Document

Follow these sequential steps to prepare, approve, and finalize a New Construction Document efficiently.

  • 01
    Gather Required Items: Collect permits, drawings, licenses, and insurance certificates.
  • 02
    Populate Core Fields: Complete project, parties, dates, scope, and payment sections.
  • 03
    Review and Approve: Route for legal, owner, and contractor review and revisions.
  • 04
    Execute and Archive: Obtain signatures, store final PDF, and distribute executed copies.

Configuring an Online Signing Workflow for New Construction Documents

Set up signer order, authentication, and storage settings to match the project’s approval matrix and compliance needs.

Field Configuration
Signing Order Owner → General Contractor → Subcontractor
Authentication Email link, optional SMS OTP, or stronger ID checks
Templates Use versioned templates for repeated project types
Notifications Auto-reminders and completion receipts to all parties

Where to Send the Document After Execution

After execution, route copies to the parties who require them and to any regulatory or funding stakeholders.

  • Owner Records: Store executed PDF in owner’s contract folder.
  • General Contractor: Provide contractor copy for on-site distribution.
  • Permit Office: Submit where required for inspection or permit compliance.
  • Lender / Funding: Send to lender for draw processing and recordkeeping.

Digital Signing and File Format Considerations

Choose a signing platform that supports PDF and DOCX, produces an audit trail, and integrates with your document storage systems.

  • File Formats: PDF, DOCX supported
  • Integrations: Procore, NetSuite, Salesforce
  • Authentication: Email, SMS, or advanced methods

Essential Data Elements to Include

Project Address: Street, city, state, ZIP
Permit Numbers: Building and trade permit IDs
License Numbers: Contractor and trade license IDs
Insurance Certificates: Policy number and carrier
Payment Terms: Amount, retainage, schedule
Lien Waiver Terms: Conditional or unconditional status

Common Preparation Errors to Avoid

  • Using inconsistent party names across documents, which can cause payment holds, lien disputes, or licensing mismatches during verification processes.
  • Failing to reference the correct drawings or addenda, leading to scope disputes and extra cost claims after work has commenced.
  • Omitting clear change-order pricing and approval steps, which increases the likelihood of unapproved work and payment conflicts.
  • Neglecting to attach insurance certificates or bonds, exposing owners and contractors to uninsured liability and potential regulatory noncompliance.

Consequences of an Incorrect or Incomplete Document

Payment Delays: Lost payments or withheld draws
Lien Risk: Mechanic’s lien exposure
Permit Rejection: Inspections or permit denial
Coverage Gaps: Insurance claims denied
Contract Disputes: Arbitration or litigation risk
Regulatory Fines: Fines and administrative penalties

Pricing and Feature Snapshot for eSignature Options

Compare starting prices and core capabilities across providers to select a platform that fits volume, compliance, and integration needs.

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 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

Real-world Examples of Platform Use in Construction and Property Workflows

These short case examples show how executed construction documents streamline processes for firms of different sizes.

Martin Properties

Construction and property teams centralize contracts and permits for new builds.

  • On-site signing speeds approvals.
  • "I can process and execute all of these documents online with 100% compliance and built-in security. Whether on mobile or working offline, I can get forms back to their necessary parties efficiently."

Optica Ventures LLC

Smaller development teams use consistent templates to reduce review cycles.

  • Template reuse cuts turnaround time.
  • "The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers."

Practical Tips for Accurate and Efficient Completion

Adopt these practices to reduce rework, speed approvals, and strengthen enforceability of New Construction Documents.

Use Versioned Templates
Maintain a single, version-controlled template library. Lock core legal clauses and allow configurable operational fields to reduce errors while enabling project-specific changes under controlled conditions.
Attach Definitive Exhibits
Include final signed drawings, schedules, and specifications as attachments. Cross-reference exhibit identifiers and dates in the main agreement to avoid ambiguity during inspections and change-order adjudication.
Require Proof of Insurance
Collect certificates and endorsements prior to mobilization. Verify limits and policy periods, and require notification to the owner for any cancellations or material changes during the project.
Define Change-Order Workflow
Specify submission format, supporting documentation, and approval timelines. Include a formula or schedule for pricing adjustments and tie time extensions to substantiating documentation.

Frequently Asked Questions About Executing New Construction Documents

Answers to common execution, notarization, and retention questions for practitioners preparing or signing New Construction Documents.


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