Real Estate Building Company Agreement

REAL ESTATE BUILDING COMPANY AGREEMENT

Parties

Owner Name:

Owner Contact (Address):

Owner Phone:    Owner Email:

Building Company Name:

Contractor License No.:    Company Contact (Address):

Company Phone:    Company Email:

Property Identification

Scope of Work

The Building Company shall furnish all labor, materials, equipment and services necessary to complete the work described in this Agreement in accordance with the plans and specifications attached as Exhibit A and incorporated herein. Major items of work include site preparation, foundations, structural framing, roofing, exterior finishes, mechanical, electrical, plumbing and final grading.

Contract Sum and Payments

Contract Sum (Total Price): $

Deposit / Earnest Money: $ to be paid within days of execution.

Retainage: of each progress payment withheld until final completion. Final payment due within days of substantial completion.

Schedule; Completion; Liquidated Damages

Commencement Date: . Substantial Completion Date: .

If the Building Company fails to achieve Substantial Completion by the Substantial Completion Date, liquidated damages in the amount of $ per calendar day will accrue, not as a penalty but as a reasonable estimate of Owner's probable damages.

Excusable delays include acts of God, labor disputes, unusually severe weather, material shortages beyond contractor control, changes ordered by Owner, and delays caused by governmental agencies. Time extensions must be requested in writing within days of the beginning of such delay.

Permits, Inspections and Compliance

The Building Company shall obtain and pay for all permits, inspections, tests and approvals required by applicable law unless otherwise specified. The Building Company shall perform work in compliance with applicable codes, ordinances and the terms of any permit.

Change Orders

No change in the Contract Sum or Time will be effective unless documented in a written Change Order signed by Owner and Building Company.

Warranties; Insurance

Builder warrants that work performed will be free from defects in workmanship for a period of months from Substantial Completion, except for defects caused by Owner or third parties. Builder shall assign to Owner any manufacturer warranties when available.

Insurance: Builder shall maintain commercial general liability insurance of not less than $ per occurrence and workers' compensation as required by law. Certificates evidencing such insurance shall be provided to Owner upon request.

Liens; Indemnity

Builder shall promptly pay all subcontractors, suppliers and laborers and shall keep the Property free from liens. If any lien is filed, Builder shall cause its release within days or provide security acceptable to Owner. Builder shall indemnify, defend and hold Owner harmless from claims arising out of Builder's performance, except to the extent caused by Owner's negligence or willful misconduct.

Defaults; Termination

Owner may declare Builder in default if Builder fails to cure material breach within days after written notice. Upon default, Owner may terminate this Agreement and pursue remedies at law or in equity. Builder may terminate for Owner's material breach following written notice and failure to cure within the same period.

Disclosures

Owner represents that to the best of Owner's knowledge the property does not contain undisclosed hazardous materials. Owner discloses the following known conditions:

Lead-based paint present: Yes    No

Asbestos or prior remediation: Yes    No

Prior structural damage or settlement: Yes    No

Dispute Resolution; Governing Law

The parties agree to submit disputes arising under this Agreement first to mediation. If mediation does not resolve the dispute within 60 days, the dispute shall be resolved by binding arbitration in accordance with the rules chosen by the parties. The prevailing party in any action to enforce this Agreement shall be entitled to recover reasonable attorneys' fees and costs.

This Agreement shall be governed by the laws of the state in which the Property is located, without regard to conflict of law principles.

Notices

Entire Agreement; Severability

This Agreement, together with any exhibits and written change orders, constitutes the entire agreement between the parties and supersedes all prior negotiations and agreements. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Remedies Cumulative

Except as otherwise provided, the remedies available to either party for breach of this Agreement are cumulative and in addition to any other remedies available at law or in equity.

Acknowledgment

The persons signing below warrant that they are authorized to execute this Agreement on behalf of the parties they represent and that the parties have read, understand and accept all terms set forth herein.

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