(Your Company Name Here)
Development and Construction Agreement
THIS DEVELOPMENT AND CONSTRUCTION AGREEMENT (“Agreement”) is made and entered into as of the (Enter the contract date here) by and between (enter the customer’s name here) (“Owner”) and (Enter your name or company name here) (“Contractor”).
General Provisions
1. Contractor shall manage and supervise the performance of all of the work from the commencement of the work through completion of the work in conformity with the approved plans and specifications. Contractor shall enter into contracts and agreements and otherwise incur costs for construction and development of the project as agent for owner. The parties further contemplate they may subsequently modify the scope of the work by mutual agreement in the form a “Change Order” form. No work shall be added or subtracted from the original approved signed estimate by any persons without an approved, signed “Change Order” form.
2. If Owner enters the project during the work, whether or not accompanied by a representative of Contractor, Owner does so at Owner's risk, and Owner hereby releases Contractor and agrees to indemnify and hold Contractor harmless from any and all claims for injury or damage to the person or property of (i) Owner; (ii) any agent or employee of Owner (other than Contractors and his agents or employees); (iii) any person(s) accompanying Owner. Owner shall indemnify and hold harmless Contractor from any loss, liability, damage, claim, loss or obligation for damage to person or property caused by the negligence of Owner or subcontractors, agents, guests, family members or invitees of Owner.
3. Owner shall not place any personal property or possessions at the Project prior to Completion of the Work without the prior written permission of Contractor. Any personal property or possessions of Owner placed at the Project shall be at the sole risk of Owner.
4. As Contractor's compensation for its services to be rendered to, or for the benefit of, Owner hereunder, Owner shall pay, or cause to be paid, to Contractor the sum of $ 8 % (“Fee”). The 8 % will be added to the total of each invoice. The “Fee” shall begin to accrue upon Commencement of the Work, payable during construction over the remaining course of the Project, commencing on or about (Enter date here).
5. Notwithstanding anything else contained herein to the contrary, Owner shall timely pay, or cause Owner's lender to timely pay, all costs at the Project as itemized on the attached CONSTRUCTION DEVELOPMENT ESTIMATE.
6. Contractor shall bill to Owner on a periodic basis all costs and expenses associated with, or attributable to, the Work, including any sums expended by Contractor necessary to perform the Work. All Work to be performed under the Contract shall be in accordance with industry standards and suggested manufacturers' instructions, if applicable. Owner shall make payments to Contractor for Work actually performed based upon submitted “Invoice / Draw Request” to Owner by Contractor. Owner shall make payments to Contractor in good funds within 10 calendar days of submittal throughout the terms of this Agreement.
Payment not received within 10 calendar days will be subject to a 1.5 % late fee per month. Owner further understands that should any payment not be received within 10 calendar days that the Contractor shall serve a NOTICE OF INTENT TO FILE A LIEN STATEMENT and if payment is not made within 10 calendar days of service of NOTICE OF INTENT, then a MECHANICS LIEN shall be filed in the (Enter the county here) office of Clerk and Recorder.
Final payment for completion of the work shall be due 7 days after such event and issuance by Contractor of an Invoice/Draw request for final payment, subject to inspection by Owner and verification of the conformity of such work with applicable Contract Documents.
Commencing of the date hereof, Owner shall obtain and maintain until the Completion of the Work, general liability, property and casualty insurance for the Project and all improvements to be constructed thereon in amounts and coverage reasonably determined by Owner. Contractor shall, on behalf of Owner, at Owner's cost and expense, obtain property damage or destruction insurance for the improvements comprising the Project for the full insurable value thereof, covering damage to tangible property (other than undeveloped land), including loss of use, fire, extended coverage, vandalism, malicious mischief, builder's all risk coverage and products liability coverage. This insurance shall cover the interests of Owner, each persons or entities acting as general partners of Owner, Contractor, and all subcontractors.
If it becomes necessary for either party to enforce provisions of this Agreement, or to obtain redress for the violation of any provisions hereof, whether by litigation, arbitration or other proceedings, the party who substantially prevails in such matter shall be entitled to recover from the other party, reasonable attorney's fees, court costs or other legal fees incurred in such litigation, arbitration or other proceeding.
IN WITNESS WHEREOF, this Agreement was executed as of the date written above.
OWNER(S) _________________________________________DATE______________
__________________________________________DATE______________
CONTRACTOR _________________________________________DATE______________
(Enter your name here)