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COMMERCIAL CONSTRUCTION CONTRACT
THIS COMMERCIAL 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. SCOPE OF WORK: Contractor shall provide all labor and materials, and perform all
commercial construction work described in the plans and specifications signed by both Owner and
Contractor (“Project”), which may include, but not be limited to, forming concrete; installing
drywall, paneling or stucco; framing; painting; site and foundation layout; roofing; and interior
and exterior finishing of various structures or buildings. Such plans and specifications are hereby
made a part of this Contract and may contain pictures, diagrams or measurements of the work area
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 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 plans or specificati ons, no
landscaping, finish grading, filling or excavation is to be performed at the Work Site by the
Contractor.
3. TIME AND START 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 include d 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, 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
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 insurance covering personal injury i n
an amount not less than$50,000 and insurance covering property damage caused by the work of a
home improvement contractor in an amount not less than $50,000, workers compensation and
builder's risk insurance. The current amount of insurance maintained is as follows: _______________.
7. SURVEY AND TITLE: If the Project is near the Owner’s property boundary, Owner will point
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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 c onstruction 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.
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.
Total Sales Price Due:
$________________
Downpayment Made: $________________
Amount Advanced for Special Materials: $________________
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 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
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.
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11. 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.
12. 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.
13. 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 exi sts
between the parties. This Contract may only be modified by a written agreement signe d by both
parties.
(c) Governing Law. This Contract shall be interpreted and governed in accordance with the
laws of the State of Pennsylvania.
14. 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.
15. SUBCONTRACTORS:
Name Address Phone Number
___________________ ___________________ ___________________
___________________ ___________________ ___________________
___________________ ___________________ ___________________
16. 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.
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(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 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
Registration Number
Name and Address of License Holder
Contact Information
OWNER OR AUTHORIZED AGENT:
Signature
Print Name
Date
The Bureau of Consumer Protection in the Office of Attorney General may be contacted at 800-441-2555
Notice of Cancellation
Date of Transaction: _________________________
You may cancel this transaction, without any penalty or obligation, within three business days from the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable
instrument executed by you will be returned within ten business days following receipt by the seller of your cancellation
notice, and any security interest arising out of the transaction will be cancelled.
If you cancel, you must make available to the seller at your residence in substantially as good condition as when
received, any goods delivered to you under this contract or sale; or you may, if you wish, comply with the instructions of
the seller regarding the return shipment of the goods at the seller's expense and risk.
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If you do make the goods available to the seller and the seller does not pick them up within twenty days of the date of
your notice of cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make
the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable
for performance of all obligations under the contract.
To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice or any other written
notice, or send a telegram, to (name of seller), at (address of seller's place of business) not later than midnight of (date).
I hereby cancel this transaction.__________________
(Date) _______________________
Buyer's Signature
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