Owner-Builder Agreement

OWNER-BUILDER AGREEMENT

This Owner-Builder Agreement (the Agreement) is made and entered into as of , by and between Owner Name: , with principal address ("Owner"), and Builder Name: , with principal address ("Builder").

RECITALS

WHEREAS, Owner desires to construct, improve or otherwise perform work on the real property located at (Property); and

WHEREAS, Builder represents that Builder has the skill, experience, personnel and licenses necessary to perform the work described in this Agreement and is willing to perform such work under the terms and conditions set forth herein; and

WHEREAS, the parties desire to set forth their respective obligations, the scope of the work, the contract price and the procedures by which changes, payments, approvals and disputes will be handled.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:

1. SCOPE OF WORK

1.1 Builder shall furnish all labor, materials, equipment and supervision necessary to complete the work described in the Scope of Work attached hereto and incorporated by reference. The parties acknowledge that the Scope of Work is described below and may be amended by written Change Order pursuant to Section 4.

2. CONTRACT PRICE AND PAYMENT

2.1 Contract Price. Owner shall pay Builder for performance of the Work the total sum of $ (Contract Price), subject to adjustments for approved Change Orders, allowances and credits in accordance with this Agreement.

2.2 Payment Schedule. Payments shall be made in accordance with the following schedule and upon submission of invoices or payment applications acceptable to Owner:

2.3 Retainage. Owner may withhold retainage of percent of progress payments until Final Completion, unless otherwise agreed in writing.

3. TIME FOR COMPLETION

3.1 Commencement. Builder shall commence work on or before , and shall prosecute the Work diligently to achieve Completion in accordance with the schedule set forth below.

3.2 Substantial Completion. Builder shall achieve Substantial Completion of the Work by , unless delay is caused by Force Majeure, Owner action, or approved Change Orders.

3.3 Liquidated Damages. If Builder fails to achieve Substantial Completion by the date set forth above, Builder shall pay Owner liquidated damages in the amount of $ per day, which the parties agree is a reasonable estimate of Owner’s probable damages.

4. CHANGE ORDERS

4.1 Procedure. Any modification to the Scope of Work, Contract Price or Time for Completion shall be documented in a written Change Order signed by Owner and Builder. Change Orders shall state the additional or deducted cost and any adjustment to the completion schedule.

5. PERMITS, APPROVALS AND UTILITIES

5.1 Permits. Builder shall be responsible for securing and paying for all permits, inspections and approvals required for the performance of the Work unless otherwise agreed in writing. Owner agrees to cooperate and execute applications or consents reasonably necessary to obtain approvals.

5.2 Utilities. Owner shall provide existing utilities to the site at no cost to Builder unless otherwise specified. Additional utility connections required by the Work shall be the responsibility of Builder Owner

6. INSURANCE; INDEMNITY

6.1 Insurance. Builder shall, at Builder’s expense, maintain commercial general liability insurance with limits not less than $ per occurrence, and workers’ compensation insurance as required by law. Builder shall provide certificates of insurance upon request.

6.2 Indemnity. To the fullest extent permitted by law, Builder shall indemnify, defend and hold harmless Owner and Owner’s agents, consultants and employees from and against all claims, damages, losses and expenses, including reasonable attorneys’ fees, arising out of or resulting from performance of the Work, to the extent caused in whole or in part by negligent acts or omissions of Builder or Builder’s subcontractors, suppliers, or anyone directly or indirectly employed by them.

7. WARRANTIES

7.1 Builder warrants that the Work will be free from defects in workmanship and materials for a period of from the date of Final Completion, except for defects resulting from normal wear and tear or Owner’s misuse.

8. TERMINATION

8.1 Termination for Cause. Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within days after written notice specifying the nature of the breach.

8.2 Payments Upon Termination. If terminated for cause, Owner shall pay Builder for work properly performed to the date of termination, subject to setoff for damages resulting from Builder’s breach.

9. DISPUTE RESOLUTION

9.1 Negotiation. The parties shall attempt in good faith to resolve disputes arising under this Agreement by negotiation between executive representatives of each party.

9.2 Arbitration. If the dispute is not resolved by negotiation within 30 days, the parties agree to submit the dispute to binding arbitration (selected) or to pursue resolution in a court of competent jurisdiction (selected). The arbitration procedure, if selected, shall be conducted under rules and by arbitrators agreed upon by the parties and the award shall be final and binding.

10. NOTICES

10.1 Any notice required or permitted under this Agreement shall be in writing and delivered by hand, recognized courier or certified mail to the addresses set forth below or to such other address as a party may designate by notice.

11. MISCELLANEOUS

11.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles.

11.2 Entire Agreement. This Agreement, including the Scope of Work, Change Orders and written attachments expressly included herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.

11.3 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect and the invalid provision shall be reformed only to the extent necessary to make it enforceable.

11.4 Amendments; Waiver. No amendment, modification or waiver of this Agreement shall be effective unless reduced to writing and signed by both parties. The waiver of any breach shall not constitute a waiver of any subsequent breach.

11.5 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Facsimile or electronic signatures shall be treated as original signatures for all purposes.

ACKNOWLEDGMENT

Each person signing below certifies that such person is duly authorized to enter into this Agreement on behalf of the party for whom that person signs and that the party agrees to be bound by its terms.

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