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 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 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.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
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 Nevada.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.(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. REQUIRED NOTICES: Disclosures to Owner as required by Nevada are attached
hereto.AGREED:CONTRACTOR:Signature ______________________________Print Name & Title ______________________Date______________________License Number________________________________Name and Address of License HolderOWNER:Signature______________________________Print Name_________________Date
NOTICES TO OWNER Pursuant to NRS 108.221 to 108.246, inclusive, a contractor, subcontractor, laborer, supplier of materials or other person or entity who:(1) Performs work or furnishes materials of the value of $500.00 or more to improve the
value of your property; and(2) Is not paid for the work or materials, has a right to place a lien on your property on
which the work was performed and to sue you in court to obtain payment. This means that after a court hearing, your property could be sold by an officer of the court,
and the proceeds of the sale used to satisfy the amount you owe. If you did not ask for and
receive releases of liens from the
contractors’ subcontractors, laborers or suppliers of materials, a lien may be placed on your
property or you may be sued even if you have paid your contractor in full.
To preserve their right to file a claim or lien against your property, certain claimants, such
as subcontractors, laborers and suppliers of materials, are each required to provide you with
a document called a “preliminary or pre-lien notice.” A preliminary or pre-lien notice is not
a lien against your property. Its purpose is to notify you regarding persons or entities who
may have a right to file a lien or claim against your property if they are not paid. To perfect
their lien rights, contractors, subcontractors, laborers and suppliers of materials must file
mechanics’ liens with the county recorder, which then become recorded liens against your
property. Generally, the maximum time allowed for filing a mechanics’ lien against your
property is 90 days after substantial completion of your project.TO ENSURE EXTRA PROTECTION FOR YOURSELF AND YOUR PROPERTY, YOU
MAY WISH TO TAKE ONE OR MORE OF THE FOLLOWING STEPS:
(1) Request that your contractor supply you with a payment and performance bond,
which guarantees completion of your project and payment of the subcontractors, laborers
and suppliers of materials who work on the project. This payment and performance bond
is different from the surety bond that a contractor must file for licensure pursuant to NRS
624.270. A payment and performance bond provides that if the contractor does not
complete the project, the bonding company will pay damages up to the amount of the bond.
This payment and performance bond, as well as a copy of the construction contract, should
be filed with the county recorder for your further protection. There is a fee for a payment
and performance bond. This fee is usually equal to between 1 and 6 percent of the amount
of the contract, depending on the ability of the contractor to be bonded.
(2) Require that payments be made directly to subcontractors, laborers and suppliers
of materials through a mechanism that controls payment for construction. In the
area in which you live, services to control the funding of your project may be available, for
a fee, to control payment of your contractor by the use of vouchers or other means. These
services may also
provide you with waivers of liens and other forms of protection.
(3) Issue joint checks for payment, made payable to both, your contractor and the
subcontractors, laborers and suppliers of materials who were involved in the project or
portion of the project for which payment is due and who sent a preliminary or pre-lien
notice to you. Those persons or entities have indicated that they may have the right to
place a lien on your property, and
therefore you need to protect yourself. Making checks jointly payable will help to ensure
that all persons due payment are actually paid.(4) Require your contractor to provide you with unconditional “waiver and release” (lien release) forms so that when you make a payment on any completed phase of your
project, each subcontractor, laborer and supplier of materials involved in that portion of the
work for which the payment was made can sign the waiver and release forms. This
protects you from liability to them for work for which they have already been paid.
· Some stationery stores sell waiver and release forms if your contractor does not
have them. The subcontractors, laborers and suppliers of materials from whom
you obtain releases should be those persons or entities who have filed preliminary or
pre-lien notices with you. If you are not certain which subcontractors, laborers and
suppliers of materials are working on your project, you may obtain a list from your
contractor. In regard to projects involving improvements to a single-family
residence or a duplex owned by an individual, the persons signing these releases
lose their right to file a mechanics’ lien against your property. In regard to other
types of projects, obtaining such releases may still be important, but may not
provide complete protection. · To protect yourself by use of a waiver and release form, you must be certain that
all subcontractors, laborers and suppliers of materials who work on your project sign
a waiver and release form. If a mechanics’ lien has already been filed against your
property, in most cases the lien can only be released voluntarily by a recorded
“release of mechanics’ lien,” which is signed by the person or entity that filed the
mechanics’ lien against your
property. However, if the person or entity that filed the lien fails to bring an action
to enforce the lien in a timely manner, the lien may be removed without voluntary
action on the part of that person or entity. You should not make final payment on
your project until all mechanics’ liens that are filed against your property have been
removed.TO PROTECT YOURSELF FULLY, YOU SHOULD CONSULT AN
ATTORNEY: (1) BEFORE YOU SIGN A CONSTRUCTION CONTRACT; OR (2) IF A LIEN IS FILED AGAINST YOUR PROPERTY.
Contractors are required by law to be licensed and regulated by the Nevada State
Contractors Board. The Nevada State Contractors Board has jurisdiction to investigate
complaints that are filed against contractors. Any questions concerning a contractor may
be referred to the Board at:Southern Nevada Addres s:2310 Corporate Circle, Ste 200
Henderson, NV 89074Phone:(702) 486-1100Fax:(702) 486-1190Northern Nevada:Addres s:9670 Gateway Drive, Ste 100
Reno, NV 89521Phone:(775) 688-1141Fax:(775) 688-1271 Hours of OperationMonday - Friday
8:00am - 5:00pm The law of this state requires a person or entity that enters into a contract to perform
construction work be properly licensed by the Nevada State Contractors Board for the
category of work that the person or entity intends to perform. Laws regulating licensed
contractors are designed to protect the public. If you contract with a person or entity who
is not licensed to perform construction work, your remedies against that person or entity
may be limited to a suit in civil court. You may be liable for damages arising out of any
injuries to an unlicensed contractor or that contractor’s employees, as well as withholding
taxes and contributions pursuant to the Federal Insurance Contributions Act and
contributions for industrial insurance and unemployment compensation. In addition, you
must comply with other applicable state and federal laws regarding employment. Finally,
you should be aware that construction performed on your property must comply with all
applicable laws, ordinances, building codes and regulations.
A contractor is required to include his license number on all of his advertising, vehicles,
bids and contracts. You may contact the Nevada State Contractors Board to find out if a
contractor has a valid license and, if so, the status of that license. The Board has complete
information on the status of all licensed contractors in the State of Nevada. This information is available through the “voice response system” of the Nevada State
Contractors Board.
As referenced above, any contractor who works on a residential property is required to provide
Residential Recovery Fund disclosures. RESIDENTIAL CONSTRUCTION RECOVERY FUND Payment may be available from the Recovery Fund if you are damaged financially by a project
performed on your residence pursuant to a contract, including construction, remodeling, repair or
other improvements, and the damage resulted from certain specified violations of Nevada law by
a contractor licensed in this State. To obtain information relating to the Recovery Fund and filing
a claim for recovery from the Recovery Fund, you may contact the Nevada State Contractors
Board at the following locations:Southern NevadaAddres s:2310 Corporate Circle, Ste 200
Henderson, NV 89074Phone:(702) 486-1100Fax:(702) 486-1190Northern Nevada:Addres s:9670 Gateway Drive, Ste 100
Reno, NV 89521Phone:(775) 688-1141Fax:(775) 688-1271 Hours of OperationMonday - Friday
8:00am - 5:00pm 2. The Board may impose upon a contractor an administrative fine:
(a) Of not more than $100 for the first violation of subsection 1; and
(b) Of not more than $250 for a second or subsequent violation of subsection 1.
3. The Board shall deposit any money received pursuant to this section in the account
established pursuant to NRS 624.470.