Proposal #XXX

Construction Proposal Template

Agreement Terms

Construction Agreement


This Construction Agreement is made and entered into as of  (Date) by and between:

::ClientCompany::, hereinafter referred to as the "CLIENT" and ::SenderCompany::, hereinafter referred to as the "CONTRACTOR";


WHEREAS, the CLIENT requires the services for a duly licensed and qualified construction firm to develop his/her property;

WHEREAS, the CONTRACTOR represents that it has the required professional skills/certifications and financial capacity to provide services to the Client;

NOW THEREFORE, the parties bind and agree to the following terms below:


  1. The CLIENT will award a Construction project to the CONTRACTOR entitled "____";
  2. The location of the CLIENT's property will be properly endorsed to the CONTRACTOR, including the necessary technical details of the lot parcel/building;
  3. The duration of the project will start from (date) and the estimated completion date by (date).


  1. The CLIENT agrees to pay the CONTRACTOR an initial 20% of the estimated contract cost, upon the finalization of the estimated project cost.
  2. The CLIENT will pay an additional 25% of the estimated project cost upon the commencement of the development.
  3. Full payment of the project will be due and demandable ten (10) days after the completion and CLIENT's receipt of Certificate of Completion.
  4. Payments should be made to the CONTRACTOR in Post Dated Checks and will be given an Official Receipt or Acknowledgement Receipt for every check received and validated.
  5. Should the Client be in default during the on-going construction, the CONTRACTOR has the right to give notice and may stop performance until the CLIENT corrects the default within thirty (30) business days.


  1. The applicable construction bond applied during the development/construction of the project will be shouldered by the CONTRACTOR provided that the cost of the bond will be included as part of the total estimated cost.
  2. All concerned permits for the construction phase will be form part of the estimated project cost and shall be duly completed by the CONTRACTOR before the start date stated in the contract.


  1. All materials listed in the materials specification list will be reviewed and agreed by the CLIENT before the actual construction commence.
  2. Changes in materials will be reflected in the estimated project cost and will be reviewed by the CONTRACTOR.
  3. Modifications in the list of materials will be subject to approval of the CONTRACTOR.


  1. The CONTRACTOR will provide a schedule of the performance of work to the CLIENT prior to the commencement of construction.
  2. Extension of work schedule is permitted only in circumstances that are beyond the CONTRACTOR's control and will be agreed upon by both the CLIENT and CONTRACTOR.


  1. Should the CONTRACTOR fail to meet the requirements set by the CLIENT, the CLIENT may notify the CONTRACTOR in writing that the CONTRACTOR is in default and will be given up to five (5) business days to act. If the CONTRACTOR fails to comply or respond within the given period, the CLIENT may correct the default and deduct the cost thereof from any payment due to the CONTRACTOR or terminate the Agreement.
  2. If the CLIENT decides to terminate the Agreement, the CONTRACTOR shall be entitled to payment for services rendered until termination of contract.


  1. The CONTRACTOR warrants the Work against defects in workmanship and materials for a period of 12 months after full completion and turnover of the building.
  2. The warranty does not take effect if the CLIENT is in default of this Agreement or the effects of normal damages brought by wear and tear, caused by the faulty maintenance of the CLIENT.
  3. Should the CLIENT provide the CONTRACTOR with a notice of a warranty claim under the 12 month period stated in this Agreement, the CONTRACTOR should respond within thirty (30) business days to the said warranty.

In Witness Whereof, the parties have executed this Agreement on the date and place above specified.


_____________________________       ________________________________


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