Construction contract template is a contract example that shows the agreement between the builder and client about the terms and conditions for a construction project. A well defined construction contract sample can help both the constructor builders and agency improve efficiency and effectiveness.
Construction Contract Overview
Construction contract needs to have a better understanding of the construction project types. There are basically three types of construction contact: the fixed price, the cost plus and time and material. The fixed price contact gives a total fixed price for all construction related activities. The cost plus contract defines all the direct and indirect cost of the construction and the builder's percentage of profit. The time and material contract defines the base rate for the time and the costs are covered by the construction owners.
Construction contract needs to clarify the state of work of the construction project. The construction contract statement of work will help both the project owner and contractor to understand what should be covered in the contract. The statement of work may cover the following key areas: the project overview, the project scope, the project schedule and key project deliverable.
Construction Contract Template Design
There is free contract example you can download for reference, however, you may consider designing your sample construction contract template based on your construction project needs and requirements. During the design process, it is essential to take into account the construction contract format, construction contract layout in the construction contract forms.
The first key part in the construction contract template is the contract overview. In the section, you may give a brief description of the project and state the parties involved in the agreement. For example, the agreement is between____ (state the construction builder) and ____ (state the property owner) on ____ (state the date of contract).
The second key part in the construction contract sample is the contract details. In the section, you need to state the details of the construction contract. For example, What is the contract price for the project? what is the payment terms? when should the project finish?
The last key part in the construction contract example is the rights and responsibilities of related parties. In the section, you will list the rights and obligations of property owner and construction builders. For example, the The Party B will carry out the works with reasonable skill, care and diligence pursuant to all applicable standards and industry practice and in compliance to all relevant building regulations and statutory requirements. The Party A must pay ____ that become due to Party B for the work performed etc.