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 [$__________] upon execution; (b) Progress payments of [$__________] upon completion of each milestone as set forth in Exhibit C; (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.