Owner Contractor Agreement for the United States

Owner Contractor Agreement Template for United States

The Owner Contractor Agreement is a legally binding document used in the United States construction industry that establishes the contractual relationship between a property owner and a contractor. It outlines the scope of work, payment terms, timeline, quality standards, and responsibilities of both parties. The agreement incorporates federal, state, and local construction laws and regulations, including licensing requirements, labor laws, and building codes.

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What is a Owner Contractor Agreement?

The Owner Contractor Agreement serves as the primary contract document for construction projects in the United States. This agreement is essential when a property owner engages a contractor for construction, renovation, or improvement work. The document typically includes detailed specifications about the project scope, timeline, payment terms, quality standards, insurance requirements, and dispute resolution procedures. It ensures compliance with federal, state, and local construction laws while protecting both parties' interests. The Owner Contractor Agreement is particularly crucial for projects requiring substantial investment or complex construction work.

What sections should be included in a Owner Contractor Agreement?

1. Parties: Identifies and defines the Owner and Contractor with full legal names and addresses

2. Background: Explains the context of the agreement and the parties' intentions

3. Definitions: Defines key terms used throughout the agreement

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

5. Contract Sum and Payment Terms: Specifies the total amount to be paid and payment schedule

6. Project Timeline: Establishes start date, completion date, and key milestones

7. Insurance and Bonds: Required insurance coverage and bonding requirements

8. Warranties and Representations: Contractor's warranties regarding work quality and materials

What sections are optional to include in a Owner Contractor Agreement?

1. Change Order Procedures: Process for requesting and approving changes to scope - recommended for complex projects likely to require modifications

2. Liquidated Damages: Predetermined damages for delay or non-performance - recommended when specific completion dates are crucial

3. Site Access and Security: Rules regarding access to work site - recommended for projects in sensitive or restricted areas

4. Environmental Compliance: Environmental protection requirements - recommended for projects with potential environmental impact

What schedules should be included in a Owner Contractor Agreement?

1. Schedule A - Detailed Scope of Work: Comprehensive description of all work to be performed

2. Schedule B - Project Plans and Specifications: Technical drawings and specifications

3. Schedule C - Payment Schedule: Detailed breakdown of payment milestones

4. Schedule D - Project Timeline: Detailed project schedule with milestones

5. Schedule E - Insurance Requirements: Specific insurance coverage requirements

6. Schedule F - Required Permits and Licenses: List of required regulatory approvals

7. Schedule G - Safety Requirements: Site-specific safety protocols 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

Cost

Free to use

Relevant legal definitions

Clauses

Relevant Industries

Residential Construction
Commercial Construction
Industrial Construction
Infrastructure

Relevant Teams

Legal
Construction
Procurement
Finance
Operations

Relevant Roles

Construction Project Manager
Property Developer
General Contractor
Construction Manager
Real Estate Manager
Contract Administrator
Project Director

Industries

Davis-Bacon Act: Federal law that requires paying prevailing wages on federally funded construction projects

Contract Work Hours and Safety Standards Act: Federal law governing overtime pay and safety standards in federal construction contracts

Fair Labor Standards Act (FLSA): Federal law establishing minimum wage, overtime pay, and youth employment standards

Occupational Safety and Health Act (OSHA): Federal law ensuring safe and healthful working conditions through enforcement of standards

Americans with Disabilities Act (ADA): Federal law prohibiting discrimination against individuals with disabilities, including construction accessibility requirements

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

State Construction Lien Laws: State-specific regulations governing mechanics liens and payment security in construction projects

State Building Codes: State-specific construction and safety standards for building projects

State Labor Laws: State-specific regulations governing employment, wages, and working conditions

State Insurance Requirements: State-specific mandates for insurance coverage in construction projects

Worker's Compensation Laws: State-specific requirements for providing worker injury compensation and insurance

Local Building Codes: Municipal-level construction standards and requirements

Local Permit Requirements: Municipal-level permits and approvals needed for construction projects

Zoning Ordinances: Local regulations governing land use and construction parameters

AIA Standards: Industry standards established by the American Institute of Architects for construction contracts

CSI Standards: Construction Specifications Institute standards for organizing construction project information

Contract Formation Requirements: Legal elements including offer, acceptance, consideration, and capacity to contract

Risk Management Provisions: Contract elements covering insurance, indemnification, warranties, and dispute resolution

Project Specifications: Essential contract terms including scope of work, payment terms, timeline, and change orders

Environmental Regulations: Federal, state, and local environmental protection requirements affecting construction projects

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What is a Owner Contractor Agreement?

What sections should be included in a Owner Contractor Agreement?

What sections are optional to include in a Owner Contractor Agreement?

What schedules should be included in a Owner Contractor Agreement?

Authors

Alex Denne

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