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Construction Contract template

A construction contract sets out the work a contractor will perform, the contract price and payment schedule, the timeline, and how changes, delays, defects, and disputes will be handled.

Replace everything in [BRACKETS], export to PDF, then send it for signature.

1. Parties

This Construction Contract (the "Contract") is made on [DATE] between [OWNER NAME], of [OWNER ADDRESS] (the "Owner"), and [CONTRACTOR NAME], of [CONTRACTOR ADDRESS], license number [LICENSE NUMBER, if applicable] (the "Contractor").

2. Project and Site

The Contractor will perform the work described in this Contract for the project known as [PROJECT NAME] at [SITE ADDRESS] (the "Project").

3. Scope of Work

The Contractor will furnish all labor, materials, equipment, and services necessary to complete the following work in a good and workmanlike manner, in accordance with the plans and specifications listed in [EXHIBIT A, e.g. drawings dated DATE by ARCHITECT] (the "Work"): [DESCRIBE WORK]. The following are excluded: [EXCLUSIONS].

4. Contract Price

The Owner will pay the Contractor [FIXED PRICE AND CURRENCY] for the Work [OR: the cost of the Work plus a fee of PERCENTAGE%, not to exceed a guaranteed maximum of AMOUNT]. The price includes [INCLUDED ITEMS, e.g. permits, disposal, cleanup] and excludes [EXCLUDED ITEMS].

5. Payment Schedule

Payments will be made as follows: [DEPOSIT AMOUNT OR PERCENTAGE] on signing; progress payments of [AMOUNTS] on completion of [MILESTONES, e.g. foundation, framing, roofing, drywall]; and the final [PERCENTAGE]% on final completion and the Owner's acceptance. The Owner will pay each approved invoice within [NUMBER] days. [OPTIONAL: The Owner may retain PERCENTAGE% of each progress payment until final completion.]

6. Schedule

The Contractor will begin the Work on or about [START DATE] and achieve substantial completion by [COMPLETION DATE], subject to extensions for approved change orders, delays caused by the Owner, and events beyond the Contractor's reasonable control, such as severe weather, material shortages, or government actions.

7. Change Orders

The Owner may request changes to the Work. No change will be made without a written change order signed by both parties describing the change, the adjustment to the price, and any adjustment to the schedule. Unforeseen site conditions will be addressed by change order.

8. Permits, Codes, and Safety

The [CONTRACTOR / OWNER] will obtain all required building permits and inspections. The Contractor will perform the Work in compliance with applicable building codes and laws, maintain a safe site, and keep the site reasonably clean, removing debris at completion.

9. Insurance

The Contractor will maintain general liability insurance of at least [AMOUNT], workers' compensation or equivalent insurance as required by law, and [OTHER INSURANCE], and will provide certificates on request. The Owner will maintain property insurance on the Project [IF APPLICABLE].

10. Subcontractors and Liens

The Contractor may use qualified subcontractors and remains responsible for their work. The Contractor will pay subcontractors and suppliers promptly and, on request, provide lien waivers or releases for payments made, where applicable law provides for them.

11. Warranty

The Contractor warrants that the Work will be free from defects in materials and workmanship for [WARRANTY PERIOD, e.g. one (1) year] after substantial completion and will correct any such defects at its own cost after written notice. Manufacturer warranties on materials and equipment will be passed through to the Owner.

12. Termination

Either party may terminate this Contract if the other materially breaches it and fails to cure within [NUMBER] days after written notice. If the Owner terminates for convenience, the Owner will pay for Work performed and materials ordered up to the termination date, plus [REASONABLE OVERHEAD / PROFIT PERCENTAGE].

13. Dispute Resolution and Governing Law

The parties will first try to resolve disputes through good-faith negotiation, then [MEDIATION / ARBITRATION / COURTS OF VENUE]. This Contract is governed by the laws of [GOVERNING LAW JURISDICTION]. It is the entire agreement between the parties and may be amended only in writing signed by both parties.

14. Signatures

The Parties agree that this Agreement may be signed electronically and in counterparts, and that electronic signatures have the same effect as handwritten signatures. OWNER: [OWNER NAME] Signature: ____________________ Date: [DATE] CONTRACTOR: [CONTRACTOR NAME] Signature: ____________________ Name: [SIGNATORY NAME] Title: [SIGNATORY TITLE] Date: [DATE]

When to use this template

  • For new builds, extensions, and major structural work
  • When a general contractor is hired by a property owner or developer
  • For commercial fit-outs and tenant improvements
  • When a project needs a fixed price or cost-plus payment structure in writing

How to fill it in and get it signed

  1. Enter the owner and contractor details, license number, and site address.
  2. Describe the scope of work, attach the plans and specifications, and list exclusions.
  3. Choose a fixed price or cost-plus structure and set a milestone payment schedule.
  4. Fill in the schedule, insurance, warranty period, dispute resolution method, and governing law.
  5. Upload the contract to eSignSimple and send it to both parties for e-signature. Use our change order template for any later changes.

This template is general information, not legal advice. Laws differ by country and state; have a lawyer review contracts with high stakes.

Frequently asked questions

What should be included in a construction contract?

Scope of work, price, payment schedule, timeline, change-order process, permits, insurance, warranty, termination, and dispute resolution. Many jurisdictions also require specific consumer notices for residential work.

What is the difference between fixed-price and cost-plus contracts?

A fixed-price contract sets one price for the defined work. Cost-plus pays actual costs plus a fee, often with a guaranteed maximum. Fixed price gives the owner more certainty; cost-plus shares the risk of unknowns.

Can construction contracts be signed electronically?

In most jurisdictions, yes. eSignSimple records an audit trail with timestamps, IP addresses, and a document hash for every signature.

Do I need a lawyer for a construction contract?

For large projects, or where local rules on licensing, liens, and consumer protection apply, having a lawyer review the contract is a good idea.