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A construction contract is an agreement between a client and a contractor that specifies the details of a construction project. The details in a construction contract should include all aspects of the project, including payment, the type of work being done, legal rights of the contractor, and more.

For some types of construction projects, you may need government permits in addition to the construction contract before contractors can begin working.

1. What is a Construction Agreement?

A Construction Contract Agreement is a written document between a property owner and a general contractor, specifying the construction, renovations, alterations, or other work to be done on the property owner’s home or land. This document outlines which parties will be engaged, the price to be paid, the rights of each party, and the date construction will commence and be completed.

A simple document will identify the following basic elements:

Owner: The party hiring the general contractor to complete construction on his or her property.

General contractor: The party responsible for the daytoday oversight of the construction.

License number: The general contractor’s state license board number, proving they are a licensed contractor

Worksite: The address of the property where the construction is to be completed.

Description of work: A detailed description of the work and construction to be done by the contractor. You can also attach project plans and specifications to the agreement.

Contract price and payments: The total price to be paid for the work and how and when payments will be made.

Contract documents: any drawings, blueprints, exhibits or other documents that will part of the contract

Materials and labor: Which party will supply and pay for the cost of materials and labor.

Starting and completion dates: The dates the contractor must start construction and have the construction substantially completed by.

Licensing and permits: Which party will be responsible for obtaining any required licenses and permits.

Subcontracts: Whether the contractor will hire subcontractors to help perform part of the contractor’s obligations

Work changes: How any changes to the agreed upon work will be handled once construction has begun.

Warranties: How long will the contractor warrant that his or her work is free from material defects.