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General Construction Contract

General Construction Contract

This General Construction Contract (the "Contract") is entered into as of [Start Date] (the "Effective Date"), by and between the Owner and Contractor identified below, for the construction work described herein at the project site specified in this Contract.

1. IDENTIFICATION OF THE PARTIES

[Owner Name], with a mailing address at [Owner Address], phone: [Owner Phone], email: [Owner Email] (hereinafter referred to as the "Owner"); and

[Contractor Name], with a principal place of business at [Contractor Address], phone: [Contractor Phone], email: [Contractor Email], License No. [License #] (hereinafter referred to as the "Contractor").

The Owner and Contractor are collectively referred to herein as the "Parties" and individually as a "Party."

2. SCOPE OF WORK

The Contractor shall furnish all labor, materials, equipment, tools, supervision, and all other items and services necessary for the proper execution and completion of the following work (the "Work") at the project site located at [Project Address] (the "Project Site"):

[Scope of Work]

The Contractor shall perform the Work in a good and workmanlike manner, in accordance with all applicable building codes, laws, ordinances, rules, and regulations, and in conformity with the plans and specifications, if any, referenced in or attached to this Contract. Any work not expressly described herein but reasonably inferable as necessary for proper completion shall be considered part of the Work.

3. CONTRACT PRICE AND PAYMENT

The Owner shall pay to the Contractor the total sum of $[Contract Price] (the "Contract Price") for the satisfactory completion of all Work described herein. Payment shall be made on a [Payment Schedule] basis, subject to the following terms.

All payment requests shall be accompanied by documentation satisfactory to the Owner evidencing the progress of the Work and the amounts due. The Owner shall make payment within thirty (30) days of receipt of a proper and complete payment request. The Owner may withhold payment, in whole or in part, to the extent reasonably necessary to protect the Owner from loss arising from defective work not remedied, claims or liens filed or reasonably anticipated, or failure of the Contractor to make payments to subcontractors or suppliers.

4. CHANGE ORDERS

Any changes to the scope, quality, or timeline of the Work shall be authorized only by a written change order signed by both Parties. No oral modifications shall be binding. Change orders shall specify the nature of the change, the adjustment to the Contract Price (if any), and the effect on the completion schedule.

5. PROJECT TIMELINE

The Contractor shall commence the Work on or before [Start Date] and shall substantially complete all Work on or before [Completion Date] (the "Completion Date"), subject to extensions granted in writing by the Owner for excusable delays, including delays caused by acts of God, labor disputes, unusually severe weather, governmental actions, or other causes beyond the Contractor's reasonable control.

Time is of the essence with respect to this Contract. If the Contractor fails to substantially complete the Work by the Completion Date, as may be extended by approved change orders or excusable delays, the Owner may exercise any and all remedies available at law or in equity, including withholding further payments until the Work is complete.

6. PERMITS AND COMPLIANCE

The [Permit Responsibility] shall obtain and pay for all permits, licenses, inspections, and governmental approvals necessary for the execution and completion of the Work. Both Parties shall comply with all applicable federal, state, and local laws, codes, ordinances, and regulations in the performance of the Work.

7. WARRANTY

The Contractor warrants to the Owner that all materials and equipment furnished under this Contract shall be new (unless otherwise specified), of good quality, and free from defects, and that the Work shall conform to the requirements of this Contract and shall be free from defects in workmanship. The Contractor shall, at no additional cost to the Owner, correct any Work found to be defective within [Warranty Period] after Substantial Completion (the "Warranty Period"). This warranty is in addition to, and not in lieu of, any other warranties provided by manufacturers or required by law.

8. INSURANCE AND INDEMNIFICATION

The Contractor shall maintain, at its own expense, commercial general liability insurance, workers' compensation insurance as required by law, and any other insurance required by applicable statutes or regulations. The Contractor shall furnish certificates of insurance to the Owner upon request and prior to commencing work.

The Contractor shall indemnify, defend, and hold harmless the Owner from and against all claims, damages, losses, costs, and expenses (including reasonable attorneys' fees) arising out of or resulting from the performance of the Work, to the extent caused by the negligent acts, errors, or omissions of the Contractor, its employees, or its subcontractors.

9. TERMINATION

The Owner may terminate this Contract for cause if the Contractor: (a) fails to perform the Work in accordance with this Contract and does not cure such failure within fourteen (14) days after receiving written notice thereof; (b) becomes insolvent or files for bankruptcy; or (c) persistently fails to comply with applicable laws or regulations.

The Owner may also terminate this Contract for convenience upon fourteen (14) days' written notice, in which case the Owner shall pay the Contractor for all Work satisfactorily performed through the date of termination, plus reasonable demobilization costs.

10. DISPUTE RESOLUTION

Any dispute arising under or in connection with this Contract shall be resolved through [Dispute Method]. All notices related to disputes shall be in writing and delivered to the addresses specified in this Contract.

11. GOVERNING LAW

This Contract shall be governed by, construed, and enforced in accordance with the laws of the State of [State], without regard to its conflicts of law principles.

12. NOTICES

All notices, demands, or other communications required or permitted under this Contract shall be in writing and shall be deemed delivered when personally delivered, or three (3) business days after being sent by certified mail, return receipt requested, to the addresses specified above, or to such other address as either Party may designate by written notice.

13. SEVERABILITY

If any provision of this Contract is held by a court of competent jurisdiction to be invalid, illegal, or unenforceable, such provision shall be modified to the minimum extent necessary to make it valid and enforceable, or if such modification is not possible, such provision shall be severed, and the remaining provisions shall continue in full force and effect.

14. ENTIRE AGREEMENT

This Contract, together with any exhibits, schedules, and change orders attached hereto or incorporated herein by reference, constitutes the entire agreement between the Parties with respect to the Work and supersedes all prior and contemporaneous negotiations, representations, warranties, commitments, offers, and agreements, whether written or oral. This Contract may not be amended except by a written instrument duly executed by both Parties.

IN WITNESS WHEREOF, the Parties have executed this General Construction Contract as of the Effective Date first written above.

Name: [Owner Name]

Date: [Date]

Name: [Contractor Name]

Date: [Date]

Party 1

________________

Signature

Date: ________________

Party 2

________________

Signature

Date: ________________

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What Is a General Construction Contract?

A General Construction Contract in the United States governs the relationship between the parties by fixing what each must do.

The contract typically follows one of several pricing models: fixed-price (lump sum), cost-plus (with a guaranteed maximum price or open-ended), time-and-materials, or unit pricing. The American Institute of Architects (AIA) and ConsensusDocs organizations publish widely used standard forms, but custom contracts are equally enforceable when properly drafted. Under the doctrine of substantial performance established in Jacob & Youngs v. Kent (1921), a contractor who completes work with minor deviations may still recover the contract price minus the cost of remediation, rather than forfeiting all payment.

Construction contracts also operate within a framework of mechanic's lien statutes that exist in every state, giving contractors, subcontractors, and material suppliers a security interest in the improved property. These lien rights affect payment obligations, notice requirements, and dispute resolution procedures throughout the project lifecycle.

When Do You Need a General Construction Contract?

A general construction contract is essential when hiring a contractor for new building construction, whether residential or commercial. This includes ground-up construction of homes, office buildings, retail spaces, warehouses, and mixed-use developments. The contract becomes critical when the project involves multiple trades — framing, electrical, plumbing, HVAC, and finishing — coordinated by a single general contractor.

Major renovation and remodeling projects that alter the structural integrity or footprint of an existing building also require a general construction contract. This covers room additions, second-story expansions, full gut renovations, and commercial tenant build-outs. Projects funded by construction loans almost universally require a signed contract, as lenders use it to establish the loan draw schedule and verify that funds are being used for their intended purpose.

Institutional and government construction projects typically mandate formal contracts under public procurement laws, often requiring competitive bidding under statutes like the federal Miller Act (40 U.S.C. Sections 3131-3134) or state little Miller Act equivalents. Owner-builders who act as their own general contractor and hire subcontractors directly should also use individual construction contracts with each trade to establish scope, pricing, and warranty obligations. Insurance carriers frequently require a copy of the construction contract to underwrite builder's risk policies.

What to Include in Your General Construction Contract

The scope of work section must describe the project in sufficient detail to prevent disputes — referencing architectural drawings, engineering specifications, and any applicable building codes. This section should clarify what is included and excluded, identify who obtains building permits, and specify the standard of workmanship expected. Ambiguous scope descriptions are the leading cause of construction litigation and change order disputes.

The payment provisions should detail the contract price, payment schedule (typically tied to milestones or percentage completion), retainage percentage (commonly 5-10% withheld until substantial completion), and procedures for submitting and approving payment applications. Under most state mechanic's lien statutes, the owner must receive conditional lien waivers from the contractor and subcontractors before releasing each progress payment. The contract should also address change order procedures — requiring written authorization before any work beyond the original scope begins, with agreed-upon markup percentages for labor, materials, and overhead.

Timeline provisions should include the start date, substantial completion date, and final completion date, along with liquidated damages for delay (a pre-agreed daily rate) and excusable delay provisions covering weather, force majeure, and owner-caused delays. Warranty clauses should specify the duration of the contractor's warranty on workmanship (typically one year) and clarify that manufacturer warranties on materials and equipment are passed through to the owner. The contract must address insurance requirements (general liability, workers' compensation, builder's risk), indemnification obligations, dispute resolution procedures (mediation before arbitration or litigation), and termination rights for both cause and convenience.

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APA

Forms Legal. (2026). General Construction Contract (United States) [Legal document template]. Forms Legal. https://forms-legal.com/usa/business/construction/general-construction-contract

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BibTeX
@misc{formslegal-general-construction-contract,
  author       = {{Forms Legal}},
  title        = {General Construction Contract (United States)},
  year         = {2026},
  howpublished = {\url{https://forms-legal.com/usa/business/construction/general-construction-contract}},
  note         = {Free legal document template. Based on Uniform Commercial Code (UCC)}
}

Frequently Asked Questions

Based on Uniform Commercial Code (UCC) — Template last modified June 2026

This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer

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