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Construction Contract

Simple to make online, a Construction Contract is often drafted by a construction contractor to outline the terms of their arrangements with a property owner. Signed by the construction contractor... Read more

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Making a Construction Contract

  • What is a Construction Contract?

    Simple to make online, a Construction Contract is often drafted by a construction contractor to outline the terms of their arrangements with a property owner. Signed by the construction contractor and the property owner, this essential document helps define each party's respective expectations and accounts for things such as how weather delays and material shortages will be handled. It also covers how much the project will cost and the terms for work hours on site. Not just a generic construction contract template, any agreement under an active Rocket Lawyer Premium membership is supported by Document Defense®, an optional benefit to help enforce your rights.

  • Why should a construction contractor write a Construction Contract?

    Whether you are being contracted by an acquaintance or a stranger, the Construction Contract is a document that should never be skipped. These benefits may help you make the decision to use one:

    • Neither party is surprised by how long the work takes
    • There is no confusion about fees charged
    • The construction contractor and property owner both understand their responsibilities

    A few unfavorable outcomes from not signing one could include incomplete payments, impractical expectations, unclear due dates, and more issues.

  • What details should my Construction Contract include?

    In order to make a Construction Contract with Rocket Lawyer, you'll need the following details:

    • Contact information for the property owner
    • What type of services will be provided
    • Any plans, specifications, and construction documents
    • Work site information
    • What materials and labor will be provided
    • Permit and insurance details
    • Subcontractor information, if applicable
    • How much it will cost and when payment is due
    • How long the project will last

    As you may expect, Construction Contracts made with Rocket Lawyer also include the typical legal language about the non-employer relationship, dispute resolution, and finally, liability for losses. In the process of making your agreement, you also will have the ability to designate which state's jurisdiction it falls under. Further personalized editing is permitted, if necessary.

  • What are the different types of Construction Contracts?

    The five main types of Construction Contracts are:

    1. Lump Sum - A lump sum is agreed upon for a project, e.g. $20,000 to remodel the kitchen.
    2. Time & materials - The customer pays for the actual costs of time and materials.
    3. Costs plus - This is similar to time and materials, except that it also includes a "plus" for profit.
    4. Unit price - The project is broken up into smaller chunks, or units, rather than one overall price.
    5. Guaranteed Maximum Price - As it sounds, there is a guaranteed maximum, and the contractor becomes responsible for any cost above that guaranteed maximum.
  • How do I create a contract agreement for construction work?

    The good news is that you do not have to start from scratch when getting your contract in writing. With Rocket Lawyer, you can create a free Construction Contract online with ease. Your contract is assembled section by section, as you provide details along the way. Normally, for this level of customization, you might end up paying a conventional lawyer fees in the hundreds of dollars, if not more.

    If you've got any hesitations or concerns about how to move forward, you can talk to an attorney. You might also like to browse our larger repository of business documents.

  • How do you recognize revenue in a construction contract?

    As this is an accounting question, you may want to consult with an accountant for information specific to your unique situation. As a general matter, however, revenue recognition can be done either on a prorated basis dependent upon the percentage of completion, or once the project is substantially completed, following the completed-contract method.

    If you have questions about making Construction Contracts or structuring your payment terms, ask a lawyer.

  • Would Rocket Lawyer be able to review my Construction Work Agreement before it is signed?

    Seeking out a legal professional to look over your Construction Contract may take a long time if you try to do it by yourself. Another approach could be via the Rocket Lawyer On Call® network of attorneys. Rocket Lawyer Premium members are able to ask for a contract review from an attorney with experience in business or send additional questions. As a small business owner or operator, you can be confident that Rocket Lawyer is by your side.

  • Are there any additional actions that I will need to take once I make a Construction Contract?

    Attached alongside each Construction Contract, there will be a series of tips on what is next to finalize the document. You are encouraged to engage with your contract in any of the following ways: editing, printing, getting signatures via RocketSign® when ready, and/or saving it as a Word or PDF document. Finally, you will need to send a copy of the signed contract to the property owner.

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