Basic Building Contract for the United States

Basic Building Contract Template for United States

A Basic Building Contract is a standardized agreement used in the United States construction industry that establishes the fundamental rights, responsibilities, and obligations between an owner/employer and a contractor for construction projects. This contract type provides a comprehensive framework for managing construction projects while ensuring compliance with federal and state construction laws, including requirements for insurance, bonds, permits, and worker protection. It includes essential provisions for project execution, payment terms, timeline management, quality standards, and dispute resolution procedures, making it suitable for a wide range of construction projects.

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What is a Basic Building Contract?

The Basic Building Contract serves as a foundational legal document for construction projects in the United States, designed to protect the interests of both the property owner and the contractor. This contract type is particularly suitable for straightforward construction projects where the design is complete before construction begins and where the roles and responsibilities of each party can be clearly defined. It incorporates essential elements required by US federal and state construction laws, including provisions for payment security, workplace safety, insurance requirements, and dispute resolution procedures. The Basic Building Contract is typically used when there is a direct relationship between the owner and a single main contractor, with the design typically being provided by the owner or their appointed architect. The document includes comprehensive details about the scope of work, payment terms, completion timeframes, quality standards, and risk allocation, while maintaining flexibility to accommodate project-specific requirements through its schedules and appendices.

What sections should be included in a Basic Building Contract?

1. Parties: Identification of the contracting parties (Owner/Employer and Contractor)

2. Background: Context of the agreement and general project overview

3. Definitions: Definitions of key terms used throughout the contract

4. Scope of Work: Detailed description of the construction work to be performed

5. Contract Sum: Total amount payable and payment terms

6. Time for Completion: Project timeline, completion date, and any milestone dates

7. Contractor's Obligations: General and specific obligations of the contractor

8. Owner's Obligations: General and specific obligations of the owner

9. Changes in Work: Procedures for variations and change orders

10. Payment Terms: Details of payment schedule, methods, and conditions

11. Insurance and Bonds: Required insurance coverage and performance bonds

12. Warranties: Contractor's warranties for workmanship and materials

13. Termination: Grounds and procedures for contract termination

14. Dispute Resolution: Procedures for handling disputes between parties

15. General Provisions: Miscellaneous legal provisions including notices, governing law, and assignment

What sections are optional to include in a Basic Building Contract?

1. Liquidated Damages: Specific damages for delay or performance failures, used when parties agree to predetermined damage amounts

2. Hazardous Materials: Procedures for handling hazardous materials, required when project involves potential hazardous substances

3. Site Security: Requirements for securing the construction site, important for urban or sensitive locations

4. Acceleration: Provisions for accelerating work completion, useful for time-sensitive projects

5. Sustainability Requirements: Green building and sustainability standards, included when project aims for specific environmental certifications

6. Multiple Prime Contractors: Coordination requirements when multiple contractors are involved

7. Commissioning: Requirements for systems testing and commissioning, important for complex mechanical/electrical systems

8. Financing Provisions: Requirements related to project financing, needed when external financing is involved

What schedules should be included in a Basic Building Contract?

1. Schedule A - Project Specifications: Detailed technical specifications and requirements

2. Schedule B - Contract Drawings: List and copies of all relevant construction drawings

3. Schedule C - Bill of Quantities: Itemized list of materials and quantities

4. Schedule D - Construction Schedule: Detailed project timeline and milestones

5. Schedule E - Payment Schedule: Detailed breakdown of payment amounts and timing

6. Schedule F - Site Information: Site details, surveys, and existing conditions

7. Schedule G - Required Insurance: Specific insurance requirements and coverage limits

8. Schedule H - Forms: Standard forms for changes, payments, and completions

9. Appendix 1 - Permits and Approvals: Copies of required permits and regulatory approvals

10. Appendix 2 - Quality Control Plan: Detailed quality control procedures and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Construction

Real Estate Development

Commercial Property

Residential Property

Industrial Construction

Infrastructure Development

Public Works

Education Facilities

Healthcare Facilities

Retail Development

Hospitality

Relevant Teams

Legal

Construction

Operations

Procurement

Risk Management

Commercial

Project Management

Property Development

Contracts Administration

Compliance

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Legal Counsel

Architect

Quantity Surveyor

Site Manager

Construction Director

Procurement Manager

Risk Manager

Commercial Manager

Operations Director

Chief Operating Officer

General Counsel

Development Manager

Property Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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