Construction contract template: How to create your own contract.

When creating your construction contract template, make sure to include all essential details that cover the project. You'll find that most construction contracts include:

• Parties involved – clearly identify all parties in the agreement, including the contractor, client, and subcontractors (if applicable). Include full legal names, addresses, and contact details.

• Scope of work – define the specifics of the project, including:
  • Project description – a detailed explanation of the work to be performed, materials to be used, and any special requirements.
  • Timeline – the estimated start and completion dates, along with any key milestones or deadlines.
  • Costs – a breakdown of total project costs, including labor, materials, and any additional charges.
  • Contract length – specify the duration of the contract, including start and end dates, as well as conditions under which extensions may be granted.

• Payment terms – outline the total agreed-upon payment, installment schedule, payment methods, and penalties for late payments. Also, specify whether payments are made upon completion of milestones or in fixed increments.

• Expenses – clarify who is responsible for additional costs, such as equipment rentals, material price fluctuations, or unforeseen expenses. Indicate whether these costs will be covered by the contractor or billed separately to the client.

• Permits and licensing – state which party is responsible for obtaining necessary permits, approvals, and ensuring compliance with local construction laws and regulations.

• Liability and insurance – define the required insurance coverage, including general liability, worker’s compensation, and property damage coverage. Also, specify who bears responsibility for any on-site accidents or damages.

• Termination procedures – establish the terms under which the contract can be terminated by either party, including notice requirements, penalties, and conditions for breach of contract.