Construction Contract Template, Free Download 2026

This Construction Contract (this "Contract") is entered into by and between [____________] ("Owner") and [____________] ("Contractor"). Owner engages Contractor to perform the construction work described herein on the property located at [____________] (the "Project").

Contractor shall furnish all labor, materials, equipment, tools, transportation, and supervision necessary to complete the work described in the Plans and Specifications attached as Exhibit A (the "Work"). The Work includes: [general description]. Contractor shall perform the Work in a good and workmanlike manner, in compliance with all applicable building codes, permits, and regulations.

Owner shall pay Contractor the total sum of [$__________] (the "Contract Price") for the complete performance of the Work. The Contract Price is [a fixed lump sum / based on time and materials not to exceed $__________ / based on unit prices as set forth in Exhibit B]. The Contract Price includes all costs of labor, materials, equipment, overhead, profit, insurance, permits, and taxes.

The Contract Price shall be paid as follows: (a) Down payment of [$__________] upon execution, which shall not exceed the maximum down payment permitted by the home improvement or residential contracting statute of the State identified in Section 12.1 (several states cap the down payment on residential work at a fixed dollar amount, at a stated percentage of the Contract Price, or at the lesser of the two, and the parties shall confirm and observe that cap before completing this blank); (b) Progress payments of [$__________] upon completion of each milestone as set forth in Exhibit C, which shall not exceed the value of the Work performed and materials delivered as of the payment date where the governing State so requires; (c) Final payment of [$__________] upon final completion and acceptance. Owner may withhold [_____]% retainage from each progress payment, released within [thirty (30)] days of final completion. Contractor shall provide lien waivers with each payment application.

No changes to the Work shall be made without a written Change Order signed by both parties specifying the change, the impact on the Contract Price and schedule, and the basis for pricing. Owner-initiated changes shall be paid at [Contractor's standard rates / rates specified in Exhibit B / negotiated rates]. Contractor shall not proceed with changes without an executed Change Order.

Contractor shall commence the Work on [____________] and shall achieve substantial completion by [____________]. The Work shall be fully completed by [____________]. Time is of the essence. Delays caused by Owner, force majeure, or unforeseen conditions shall extend the schedule by an equivalent period. Contractor shall provide written notice of any delay within [five (5)] days of its occurrence.

All materials shall be new (unless otherwise specified) and of quality conforming to the Plans and Specifications. All workmanship shall be of the highest quality consistent with industry standards. Contractor warrants all Work against defects in materials and workmanship for [one (1)] year from the date of substantial completion. Contractor shall promptly correct any defective Work at Contractor's expense.

Contractor shall maintain: (a) commercial general liability insurance of [$__________]; (b) workers' compensation as required by law; (c) automobile liability of [$__________]; and (d) builder's risk insurance covering the full value of the Work. Contractor shall name Owner as additional insured. Contractor shall obtain all required permits and inspections at [Contractor's / Owner's] expense.

Contractor shall keep the Project free from all liens. Contractor shall provide lien waivers from all subcontractors and suppliers with each payment application. If any lien is filed, Contractor shall promptly discharge or bond the lien at Contractor's expense.

Either party may terminate for material breach upon [seven (7)] days' written notice if the breach remains uncured. Owner may terminate for convenience upon [fourteen (14)] days' notice, paying for Work completed plus [_____]% overhead and profit on unperformed Work. If Contractor defaults, Owner may complete the Work and deduct costs from amounts owed.

Disputes shall first be submitted to good faith negotiation. If unresolved within [thirty (30)] days, disputes shall be submitted to [mediation / binding arbitration / litigation] in [_____________ County, State of _____________]. The prevailing party shall be entitled to reasonable attorneys' fees.

This Contract shall be governed by the laws of the State of [_____________], including applicable lien laws and contractor licensing requirements. This Contract constitutes the entire agreement. Amendments require written signatures of both parties.

This Article applies if the Work constitutes home improvement, residential construction, remodeling, or repair work on a dwelling occupied or to be occupied by Owner. Contractor is licensed or registered to perform the Work in the State identified in Section 12.1 under license or registration number [____________], issued [____________] and expiring [____________]. Contractor shall state that number on this Contract, on each Change Order, and on each invoice and payment application to the extent the licensing statute of that State so requires. The parties acknowledge that many states prescribe additional mandatory content for residential contracts, including required notice text in a prescribed size and format, limits on the down payment and on the timing of progress payments, and required schedule and cancellation disclosures. Before execution, the parties shall conform this Contract, including Sections 4.1, 13.2, and 13.3, to the requirements of the State identified in Section 12.1, and the statutory text of that State shall control over the general language of this Article.

NOTICE OF CANCELLATION RIGHTS. [Include and conform this notice where a right to cancel is required by the law of the State identified in Section 12.1, or by the Federal Trade Commission Cooling-Off Rule, 16 C.F.R. Part 429, which applies where this Contract is signed at Owner's residence or at a location other than Contractor's place of business:] You, the Owner, may cancel this Contract at any time before midnight of the [third (3rd)] business day after the date you sign it. To cancel, deliver or mail a signed and dated written notice of cancellation to Contractor at [____________], or use the Notice of Cancellation form furnished with this Contract. If you cancel within that period, all payments made by you under this Contract shall be returned to you within [ten (10)] business days after Contractor receives your notice of cancellation, and any security interest arising out of this Contract shall be cancelled. Contractor shall deliver to Owner, at the time this Contract is signed, [two (2)] completed copies of the Notice of Cancellation form. The cancellation period, the refund period, and the form and delivery of this notice shall in all events be those prescribed by the governing State and by applicable federal law.

NOTICE TO OWNER REGARDING MECHANICS LIENS. Contractors, subcontractors, laborers, and material suppliers who furnish labor or materials to improve the Project may be entitled to record a mechanics, materialman's, or construction lien against the Project if they are not paid, and in many states they may do so even if Owner has already paid Contractor in full for that labor or those materials. To reduce that risk, Owner may require the lien waivers provided for in Sections 4.1 and 9.1, may request a written list of all subcontractors and suppliers furnishing labor or materials to the Project, may issue joint checks, and may use any other protection afforded by the lien law of the State identified in Section 12.1. Many states prescribe the exact wording, type size, placement, and timing of delivery of this warning, and several require that it be given before any work begins or before any payment is made. Where the governing State prescribes such a notice, the statutory text shall be used in place of this Section, which is a general warning only and is not a substitute for any statutory notice.