New Construction Contract

• Category: Contracts - Construction
• State: Multi-State
• Control #: US-C-C-101-1
• Format: Word; Rich Text

Description

A building and construction contract must fulfill the same requirements as any other type of contract in regard to matters such as offer and acceptance, sufficiency of consideration, certainty, and the like. Such a contract generally provides not only for the construction of the project, but also for many matters that are incidental to the project. Thus, it may provide for the carrying of liability, workers' compensation, and fire insurance policies, designating which party is responsible for obtaining particular insurance. A building and construction contract will typically specify the duties, responsibilities, and liabilities of each of the parties, as well as those of any employed architect or engineer. The amount and method of compensation is, of course, an important part of such a contract.

A New Construction Contract is an agreement between a contractor and a customer for the construction of a new building, structure, or project. It outlines the terms and conditions of the construction project, including the scope of services, timeline, payment structure, and warranties. It is also known as a building or construction contract. There are several types of New Construction Contracts, including lump sum contracts, cost-plus contracts, design-build contracts, and unit-price contracts. Lump sum contracts are agreements whereby the contractor is paid a single lump sum for the completion of the project. Cost-plus contracts are agreements whereby the contractor is paid for the cost of materials and labor plus a predetermined fee. Design-build contracts are agreements whereby the contractor is responsible for both the design and construction of the project. Unit-price contracts are agreements whereby the contractor is paid a fixed price for each unit of work produced.