Showing posts with label Construction Contract. Show all posts
Showing posts with label Construction Contract. Show all posts

Friday, April 13, 2012

A Sample of Home Construction Contract


This contract sample is for home construction, repair, or remodeling. It was drafted by the Consumer Protection Division of the Maine Attorney General in an attempt to meet the requirements of 10 M.R.S.A.§§ 1486-90, Home Construction Contracts. This contract is required to be used for home construction or repair projects costing more than $3,000. You are free to copy this contract and use it for your home construction project.
The Maine Attorney General does not guarantee that this model contract satisfies all legal requirements.
Contract No. _________________________
1. Parties to This Contract:
A. Contractor
Name:
Phone :
Address:
B. Homeowner or Lessee:
Name:
Phone:
Address:
2. Location of Work:
3. Completion Dates:
A. Estimated date of commencement:
B. Estimated date of completion:
4. Contract Price (if a “cost-plus” formula the cost of labor and materials must be estimated):
5. Method of Payment (initial down payment is limited to no more than 1/3 of the total contract price):
6. Description of the Work:
7. Warranties: The contractor provides the following express warranty:
In addition to any additional express warranties agreed to by the parties, the contractor warrants that the work will be free from faulty materials; constructed according to the standards of the building code applicable for this location; constructed in a skillful manner and fit for habitation. The warranty rights and remedies set forth in the Maine Uniform Commercial Code apply to this contract.
8. Resolution of Disputes: If a dispute arises concerning the provisions of this contract or the performance by the parties, then the parties agree to settle this dispute by jointly paying for one of the following (check only one):
1. Binding arbitration as regulated by the Maine Uniform Arbitration Act, with the parties agreeing to accept as final the arbitrator’s decision (______);
2. Nonbinding arbitration, with the parties free to not accept the arbitrator’s decision and to seek satisfaction through other means, including a lawsuit (______);
3. Mediation, with the parties agreeing to enter into good faith negotiations through a neutral mediator in order to attempt to resolve their differences (______). The parties are not required to select one of these dispute resolution methods. They are optional. If the parties do not select one of these dispute resolution options, check here: ______.
9. Change Orders: Any alteration or deviation from the above contractual specifications that involve extra cost will be executed only upon the parties entering into a written change order.
10. Additional Provisions:
Please note: if this contract is being used by contractors who sell door-to-door it must meet any applicable requirements of the Consumer Solicitation Sales Act, 32 M.R.S.A. §§ 4661-4671, the Door-to-Door Home Repair Transient Sellers Act, 32 M.R.S.A. §§ 14501-14512, and The Credit Home Solicitation Sales Act, 9-A M.R.S.A. §§ 3-501-3-507, including a description of the consumer’s 3 day right to cancel the contract. If this contract includes installation of insulation in an existing residence it must contain a detailed description of the insulation as required by 10 M.R.S.A. § 1482. If this contract includes construction of a new residential building or a new addition to an existing residence, it must contain a statement that 10 M.R.S.A. §§ 1411 -1420 establishes minimum energy efficient building standards for new residential construction, and whether this building or addition will meet or exceed those standards.
11. Contract Acceptance:
Signature:
Date: _____________
(Homeowner or Lessee)
Signature:
Date: _____________
(Contractor)
Each party must receive a copy of this signed contract before work can be started.

Construction Contract


Definition of a construction contract

The term Contract used in the Construction management can be defined as: “An agreement entered into by two parties under the terms of which one party agrees to perform a specific job for which the other party agrees to pay. Contract documents attached to and/or stated in the agreement form integral parts of the contract”.
Essentials of Contract validity
The parties to the contract must be competent, and legally capable of playing their intended part. The law can not enforce the agreement on someone who has not the legal capacity to enter into an agreement. This could be due to infancy, lunacy, drunkenness, or being restricted from entering into such agreement by a prior in date agreement or scope of authority.
The subject matter of the contract must be lawful and definite in respect of requirements and duties of each party. For example a contract violating municipal regulation is not binding and is void in courts. Also uncertainty in respect of the what is wanted may result in the contract being not enforceable by law.
Proposal and acceptance: There must be a proper proposal by one party and its absolute and unqualified acceptance by the other party. The proposal is not binding without a clear acceptance and is not binding beyond its date of validity.
Free consent of parties to the contract: Consent is said to be free when it is not caused by force, or undue influence or fraud or misrepresentation.

Breach of Contract

Breach of Contract is the failure to perform it. However, not every failure to perform an obligation amounts to a true breach, as there are a number of excuses for non performance. When a contract has been broken without sufficient excuse or justification, the party who suffers by such breach is entitled to receive from the party in default, a compensation for any loss or damage caused by such breach.

Data Required for Preparing an Estimate:

A Contract may be terminated or brought to an end in either of the following ways:
* Full and satisfactory performance by both parties to their obligations under the contract.
* Breach of contract, when the default of one party releases the other party from the contractual obligations.
* Mutual agreement of the parties to terminate the contract.
* Unforeseen circumstances beyond the control of either party render it impossible to perform his duties or obligations stated in the contract.
* Operation of law to terminate a void contract.

Types of contracts commonly used in construction

* Lump sum contract
* Item rate or unit price contract
* Percentage rate contract
* Cost plus percentage rate contract
* Cost plus fixed fee contract
* Cost plus fluctuating fee contract
* Target cost contract.