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. SCOPE OF WORK: Contractor 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 and 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, 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
(“Property”) and more particularly described as (hereafter
"the Work Site"). Owner hereby authorizes Contractor to commence and complete the usual 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 specifications, no
landscaping, finish grading, filling or excavation is to be performed at the Work Site by the
Contractor.
3. 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.
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 included 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, workers compensation and builder's
risk insurance.
7. 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 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
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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 drawings and specifications, from time to time during the construction 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 Contractor shall
estimate the cost thereof and Owner shall pay the actual cost whether or not it 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.
During the progress of work under this Contract and for 30 days after the work is completed, the
owner shall retain: (i) 10% of the Contract Price; or (ii) 10% of the value of the work, measured
by the proportion that the work done bears to the work to be done, using the contract price or, if
there is no contract price, using the reasonable vale of the completed work. The retained funds
shall secure the payment of artisans and mechanics who perform labor or service and the payment
of other persons who furnish material, material and labor, or specially fabricated material for any
contractor, subcontractor, agent, or receiver in the performance of the Project.
At the time of final payment, Contractor shall provide Owner with a Final bills-Paid Affidavit.
Owner shall pay Contractor the above mentioned retainage within 40 days after the Project is
completed and Owner has received from Contractor the Final Bills Paid Affidavit.
10. LATE PAYMENT/DEFAULT: A failure to make payment f or a period in excess of ten (10)
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days from the due date shall be deemed a material breach of this Contract. If payment is not made
when due, Contractor may suspend work on the job until such time as all payments due have been
made without breach of the Contract pending payment or resolution of any dispute. Owner agrees
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.
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 Contractor 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 the
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, 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 exists
between the parties. This Contract may only be modified only by a written agreement signed by
both parties.
(c) Governing Law. This Contract shall be interpreted and governed in accordance with the
laws of the State of Texas.
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 party in such
proceeding shall be entitled to recover reasonable attorney fees and court costs.
15. 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 performed by
individuals duly licensed and authorized by law to perform said work.
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(c) Contractor agrees to remove all debris and leave the premises in broom clean condition.
16 . 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.
17. NO WORK COMMENCED: Contractor and Owner affirm that:
(a) no work of any kind (e.g., the destruction or removal of any existing improvements, site
work, clearing, grubbing, draining, or fencing of the Property) has commenced or been performed
on the Property;
(b) no labor or materials have been ordered or furnished to or on behalf of Owner for use in
such construction; and
(c) no contracts or agreements (oral or written) for the furnishing of labor, materials, or
services for use in the construction or improvements on the Property have been executed.
18. RECEIPT OF DISCLOSURE STATEMENT: Before execution of this Contract, Owner
received from Contractor the disclosure statement required by Section 53.255(b) of the Texas
Property Code.
AGREED:
CONTRACTOR:
Signature
Print Name & Title
Date
License Number
Name and Address of License Holder OWNER:
Signature
Print Name
Date
If the Owner is married, the Owner’s spouse is
required to sign below. If the Owner is not married,
write, “I am not married” below and initial.
OWNER’S SPOUSE
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Signature
Print Name
Date
This Contract is subject to Chapter 27, Property Code. The provisions of that chapter
may affect your right to recover damages arising from the performance of this Contract.
If you have a complaint concerning a construction defect arising from the performance
of this Contract and that defect has not been corrected through normal warranty
service, you must provide notice regarding the defect to the Contractor by certified mail,
return receipt requested, not later than the 60th day before the date you file suit to
recover damages in a court of law. The notice must refer to Chapter 27, Property Code,
and must describe the construction defect. If requested by the Contractor, you must
provide the contractor an opportunity to inspect and cure the defect as provided by
Section 27.004, Property Code.
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LIST OF SUBCONTRACTORS AND SUPPLIERS
SUBCONTRACTORS:
Name Address Phone Number
SUPPLIERS:
Name Address Phone Number
NOTICE: THIS LIST OF SUBCONTRACTORS AND SUPPLIERS MAY NOT BE A FINAL
LISTING. UNLESS YOU SIGN A WAIVER OF YOUR RIGHT TO RECEIVE UPDATED
INFORMATION, THE CONTRACTOR IS REQUIRED BY LAW TO SUPPLY UPDATED
INFORMATION, AS THE INFORMATION BECOMES AVAILABLE, FOR EACH
SUBCONTRACTOR OR SUPPLIER USED IN THE WORK PERFORMED ON YOUR RESIDENCE.
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WAIVER OF THE LIST OF SUBCONTRACTORS AND SUPPLIERS
AN OWNER IS NOT REQUIRED TO WAIVE THE RIGHT GRANTED BY SECTION 53.256,
PROPERTY CODE, TO RECEIVE FROM THE CONTRACTOR AN ORIGINAL OR UPDATED LIST
OF SUBCONTRACTORS AND SUPPLIERS.
BY SIGNING THIS DOCUMENT, I AGREE TO WAIVE MY RIGHT TO RECEIVE FROM THE
CONTRACTOR AN ORIGINAL OR UPDATED LIST OF SUBCONTRACTORS AND SUPPLIERS.
I UNDERSTAND AND ACKNOWLEDGE THAT, AFTER SIGNING THIS DOCUMENT, THIS
WAIVER MAY NOT BE CANCELED AT A LATER DATE.
I HAVE VOLUNTARILY CONSENTED TO THIS WAIVER.
AGREED:
CONTRACTOR:
Signature
Print Name & Title
Date OWNER:
Signature
Print Name
Date
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PAYMENT REQUEST AND DISBURSEMENT STATEMENT
PAYMENT REQUEST
Original Contract Price: $
Price of any Change Orders: $
Total Price with Change Orders: $
Percent of Project Completed by Contractor: $
Amount due by Owner: $
10% Permitted Retainage by Owner: $
Amount due by Owner less Retainage: $
Past Due Amount: $
Total Amount Due: $
DISBURSEMENT STATEMENT
LIST OF ALL SUBCONTRACTORS AND SUPPLIERS
SUBCONTRACTORS AND SUPPLIERS TO BE PAID FROM THIS PAYMENT ARE
INDICATED BELOW
SUBCONTRACTORS:
Name Address Amount Owed
SUPPLIERS:
Name Address Amount Owed
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