Construction Contract template and PDF guide (Construction) |...
Draft contract terms online, then generate a professional PDF for review and signature. Use this before any construction work begins to establish the binding agreement between...
When to use this template
Draft contract terms online, then generate a professional PDF for review and signature. Use this before any construction work begins to establish the binding agreement between the owner and contractor, or between the general contractor and a subcontractor, covering scope, price, schedule, and legal terms.
What to include
- Full legal names and addresses of both parties, project address, and a description of the work referencing the attached scope, plans, and specifications by title, date, and revision number.
- Contract sum stated as lump sum, cost-plus with a guaranteed maximum, or unit price, with the payment schedule tied to milestones or monthly pay applications and retainage percentage.
- Time of performance with a start date, substantial completion date, final completion date, and liquidated damages amount per day if applicable for schedule overruns.
- Insurance and bonding requirements specifying minimum general liability, auto, workers compensation, and umbrella limits, plus performance and payment bond requirements if applicable.
- Termination, dispute resolution, and lien waiver provisions covering termination for cause and convenience, mediation or arbitration clauses, and the requirement to exchange lien waivers with each payment.
Common questions
- Can I edit this Construction Contract online before both parties sign?
- Yes. Update scope, payment terms, and timeline clauses in-browser before locking the final text.
- Can I save this Construction Contract as a reusable contract baseline?
- Yes. With an account, save it and reuse the structure across projects while customizing client-specific terms.
- Can I generate a sign-ready PDF from this Construction Contract?
- Yes. Export a clean contract PDF suitable for e-sign workflows or manual signatures.
- Should I use an AIA contract or write my own?
- AIA contracts are industry-tested and well-understood by subs and lenders. For jobs under $100K, a simpler custom contract is fine if reviewed by counsel.
- What is the difference between lump sum and cost-plus?
- Lump sum means a fixed price regardless of actual costs. Cost-plus means the client pays actual costs plus a markup percentage — better for uncertain scopes.
- Do I need a performance bond on every project?
- No. Bonds are typically required on public projects or jobs over $100K. Private residential clients rarely require them.
- Should the contract include a retainage clause?
- For projects over $50K, yes. A 5-10% retainage held until punch list completion gives the owner leverage and gives you a clear final payment trigger.
- Do I need a written contract for every job?
- For any job over a few hundred dollars, yes. A written contract protects both sides and dramatically reduces payment disputes. Verbal agreements are nearly impossible to enforce.
- What happens if the customer breaks the contract?
- A signed contract gives you legal standing to collect payment for completed work and recover costs. Without one, you have very little recourse.
- How do I handle a customer who refuses to sign?
- Do not start work without a signed agreement. A customer who will not sign a fair contract is likely to be a problem customer. Protect yourself before tools come out of the truck.