Construction Contracts

What Are Construction Contracts?

Contracts for construction and repair work are legally binding documents that are concluded between an employer and a contractor. Such papers prescribe the rights and obligations of the participants in the process, the timing and scope of work, the possibility of hiring subcontractors, penalties, risks, and much more.

Since there are practically no identical construction projects, the agreements between the parties can also differ greatly. Our library contains many forms of construction contracts that cover various aspects of work, from roofing to full house repair. Any file can be customized to reflect the parties' current requirements and wishes fully.

Types of Construction Contracts

Contracts for construction work may be different depending on the payment system for the job, which the parties agree on:

• Lump sum contracts are used when the total cost of a project is easy to determine. This type implies a fixed payment, regardless of the final result. This option is not suitable for complex and multi-stage projects.
• Time and materials contracts are more flexible than the previous ones. Although they also indicate the cost of work in advance, the complexity, necessary materials, planned time of work, and much more are taken into account when determining it.
• Cost-plus contracts mean that contractors keep careful records of purchased and used materials and clearly record the work time. As a result, they provide employers with this data and receive a bonus for working on top of it.
• Unit price contracts are based on the cost of so-called units (or blocks), which can be labor, materials, supplies, etc. The parties agree on the number of units necessary to complete the work.
• GMP contracts limit the maximum amount an employer is ready to pay. A contractor must pay all costs above this limit. These costs can be really high in large projects, so when signing an agreement, all risks should be calculated.

Where to Get Construction Contracts Templates

You will find the most common construction contracts forms in this category. Review all of our templates before proceeding. See what conditions are written in them in advance, whether there is room for maneuver, and what kind of work they are designed for. So you will find the perfect option. Any form from our library can be edited and personalized by removing irrelevant items or adding extra conditions to it.

Make all the necessary changes to fit the current situation and send the documents for review to the second party. If everything suits them, you can sign construction management contracts.

How to Make Simple Construction Contracts

To create the perfect construction contracts PDF, make the most of PDFLiner:

1. Select a standard template and open it in the editor. After downloading, you can start filling it out. Don't let a large number of pages intimidate you; most of them are text describing the working conditions and obligations of the parties.
2. Enter information about the project: name, location, and unique number. The contract should also be given a unique ID.
3. Provide details of the parties: name, business titles, and positions (if applicable). Put the date from which the contract begins to operate.
4. Include the planned period of work and the contractor's fixed payment or rate in the agreement. Read the terms and conditions of payment, the consequences in case of delay, and other questions regarding finances.
5. Provide a detailed list of work to be performed by a contractor. Try to describe them in as much detail as possible to avoid ambiguity. Specify who is responsible for purchasing materials and with whom they remain at the end of the work.
6. Write down the conditions for assessing the work performed, cleaning the construction site, and the possibility of hiring subcontractors. The contract should also cover the risks and hazards associated with the task, warranties, the option of terminating the agreement, penalties in case of failure to complete the order on time, etc.
7. Each party must read the text and propose amendments if they do not agree with something. When the final version of the contract is ready, participants and witnesses must sign it. After that, contractors can get to work starting from the date specified in the text.

You can draw up a contract electronically or print out our template and fill it out by hand. Any version is considered legally binding and obliges the parties to comply with the described conditions.