New construction contract

A new construction contract is a legally binding agreement between a property owner (the "owner") and a contractor (the "builder" or "contractor") that outlines the terms and conditions of a construction project. Here are the typical components of a new construction contract:

1. Introduction

• Project description: A brief summary of the project, including the scope of work, location, and timeline.
• Parties involved: The owner and the contractor, including their addresses and contact information.

2. Scope of Work

• Description of the work: A detailed description of the construction work to be performed, including the materials, labor, and equipment required.
• Exclusions: A list of items or services that are not included in the scope of work.

3. Payment Terms

• Payment schedule: The schedule for making payments to the contractor, including the amount and frequency of payments.
• Payment methods: The methods by which payments will be made, such as checks, wire transfers, or online payments.

4. Contract Price

• Total contract price: The total amount of money the owner agrees to pay the contractor for the project.
• Pricing structure: The method by which the contractor will be paid, such as a fixed price, cost-plus, or unit price.

5. Work Schedule

• Project timeline: A detailed schedule of the construction work, including milestones and deadlines.
• Work hours: The hours during which the contractor will perform work, including overtime and weekend work.

6. Quality of Work

• Standards of quality: The standards to which the contractor must adhere in performing the work, including any relevant building codes and regulations.
• Defects and warranties: The procedures for addressing defects and warranties, including the process for reporting and resolving issues.

7. Insurance and Liability

• Insurance coverage: The types and amounts of insurance coverage required of the contractor, including liability insurance and workers' compensation insurance.
• Liability: The procedures for addressing liability issues, including the process for reporting and resolving claims.

8. Changes and Extras

• Change orders: The procedures for requesting and approving changes to the scope of work, including the process for pricing and approving changes.
• Extras: The procedures for requesting and approving additional work or materials, including the process for pricing and approving extras.

9. Termination

• Termination for default: The procedures for terminating the contract if the contractor fails to perform the work as required.
• Termination for convenience: The procedures for terminating the contract if the owner decides to cancel the project.

10. Dispute Resolution

• Dispute resolution process: The procedures for resolving disputes between the owner and the contractor, including mediation and arbitration.

11. Governing Law

• Governing law: The laws of the state or jurisdiction in which the project is located, which will govern the contract.

12. Entire Agreement

• Entire agreement: The contract is the entire agreement between the parties, and there are no other agreements or understandings between them.

13. Amendments

• Amendments: The procedures for amending the contract, including the process for requesting and approving changes.

14. Binding Effect

• Binding effect: The contract is binding on both parties, and each party is responsible for fulfilling its obligations under the contract.

15. Effective Date

• Effective date: The date on which the contract becomes effective, which is typically the date the contract is signed by both parties.

Remember that this is just a general outline, and the specific terms and conditions of a new construction contract may vary depending on the project, location, and parties involved. It's always a good idea to consult with a lawyer or construction expert to ensure that your contract is comprehensive and protects your interests.