Construction Agreement for the United States

Construction Agreement Template for United States

A Construction Agreement is a legally binding document used in the United States that establishes the terms and conditions between an owner/employer and a contractor for construction work. The agreement outlines the scope of work, payment terms, timeline, quality standards, and responsibilities of all parties involved. It incorporates federal regulations such as OSHA requirements and state-specific construction laws, while addressing crucial aspects like insurance requirements, warranties, and dispute resolution procedures. This document serves as the primary contract governing the construction project and typically includes detailed specifications, drawings, and schedules as attachments.

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What is a Construction Agreement?

The Construction Agreement serves as the foundation for any construction project in the United States, whether residential, commercial, or industrial. This contract type is essential for defining the legal relationship between the project owner and contractor, establishing clear expectations, and protecting all parties' interests. The agreement typically includes detailed specifications of work, payment schedules, completion timelines, quality standards, and risk allocation provisions. It must comply with federal regulations like OSHA and state-specific construction laws, while also addressing local building codes and permit requirements. The Construction Agreement is particularly crucial as it helps prevent disputes by clearly defining roles, responsibilities, and procedures for handling changes or issues that may arise during the construction process. It should be customized based on project size, complexity, and jurisdiction-specific requirements.

What sections should be included in a Construction Agreement?

1. Parties: Identifies and defines the contracting parties (Owner and Contractor)

2. Background: Context of the construction project and reason for agreement

3. Definitions: Key terms used throughout the agreement including relevant legislative definitions

4. Scope of Work: Detailed description of construction work to be performed, including compliance with building codes and standards

5. Contract Price: Payment terms, amounts, schedule, and compliance with Davis-Bacon Act where applicable

6. Project Timeline: Construction schedule, milestones, and completion dates

7. Contractor Obligations: Detailed responsibilities including OSHA compliance, licenses, permits, and safety regulations

8. Owner Obligations: Site access, permits, approvals, and other owner responsibilities

9. Changes and Change Orders: Process for modifications to scope, price, or schedule

10. Insurance and Bonds: Required insurance coverage, performance bonds, and Miller Act compliance if applicable

11. Warranties and Guarantees: Contractor warranties and quality guarantees

12. Termination: Conditions and procedures for contract termination

What sections are optional to include in a Construction Agreement?

1. Force Majeure: Provisions for unforeseen circumstances and natural disasters

2. Liquidated Damages: Predetermined damages for specific breaches and delays

3. Environmental Compliance: Specific environmental protection measures and EPA compliance requirements

4. Labor Relations: Provisions related to labor law compliance and union requirements

5. Dispute Resolution: Alternative dispute resolution procedures and jurisdiction-specific requirements

What schedules should be included in a Construction Agreement?

1. Schedule A - Construction Drawings: Detailed architectural and engineering plans

2. Schedule B - Bill of Quantities: Itemized list of materials and quantities

3. Schedule C - Construction Schedule: Detailed timeline of construction phases and milestones

4. Schedule D - Payment Schedule: Milestone-based payment structure

5. Schedule E - Technical Specifications: Detailed technical requirements and standards

6. Schedule F - Site Safety Plan: Safety procedures and OSHA compliance requirements

7. Schedule G - Warranty Terms: Detailed warranty provisions and procedures

8. Schedule H - Required Permits and Licenses: List of required permits, licenses, and regulatory approvals

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

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Davis-Bacon Act: Federal law requiring payment of local prevailing wages on public works projects for laborers and mechanics

Occupational Safety and Health Act (OSHA): Federal law establishing workplace safety standards and regulations for construction sites

Contract Disputes Act: Federal legislation governing contract disputes involving federal government contracts

Miller Act: Federal law requiring performance bonds and payment bonds for federal construction projects

Americans with Disabilities Act (ADA): Federal law requiring accessible design and construction standards for public facilities

Fair Labor Standards Act: Federal law establishing minimum wage, overtime pay, and child labor standards

National Labor Relations Act: Federal law governing labor relations and collective bargaining rights

EPA Regulations: Environmental Protection Agency standards for construction impact on environment

State Contractor Licensing Laws: State-specific requirements for contractor qualifications and licensing

State Building Codes: State-specific construction standards and requirements

Mechanics' Lien Laws: State laws protecting contractors' and suppliers' rights to payment for work performed

Workers' Compensation Laws: State-specific requirements for workplace injury insurance and compensation

State Insurance Requirements: State-mandated insurance coverage for construction projects

Local Building Codes: Municipality-specific construction requirements and standards

Zoning Regulations: Local laws governing land use and construction permissions

Permit Requirements: Local governmental approvals needed for construction projects

AIA Standards: American Institute of Architects industry-standard contract documents and practices

AGC Guidelines: Associated General Contractors of America best practices and industry standards

CSI Standards: Construction Specifications Institute standardized construction documentation formats

Uniform Commercial Code: State-adopted standardized laws governing commercial transactions, including construction materials

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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