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THIS AGREEMENT made as of [Date of Agreement (ie. July 1, 2002)] between [Name of
Owner] ("Owner") of [Address of Owner] and [Name of Contractor] ("Contractor") of
[Address of Contractor].
WHEREAS:
(B) Owner wishes to retain Contractor to build a new home on the Property;
ARTICLE 1 - INTERPRETATION
1.1 Definitions. In this Agreement, the following words and phrases will have the following
respective meanings:
(a) “Agreement” means this Agreement and all schedules and attachments hereto.
(b) “Commencement Date” means the date upon which a building permit is issued
for the construction of the Home.
(c) “Home” means the home to be constructed on the Property in accordance with the
terms and conditions of this Agreement.
(e) “Substantial Completion of the Home” means completion of the Home such
that it is ready for use or is being used for the purpose intended, notwithstanding
that some finishes or other work has not been completed.
(f) “Term” means the period between the Commencement Date to Substantial
Completion of the Home.
(g) “Working Day” means a day other than a Saturday, Sunday, or a holiday which is
observed by the construction industry in the City in which the Property is located.
1.2 Prior Agreements. This Agreement supersedes all prior negotiations, representations, or
agreements, either written or oral, relating in any manner to the Home, including any
bidding documents that are not expressly made a part of this Agreement.
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1.3 Amendments. This Agreement may be amended by written agreement signed by all
parties hereto.
1.4 Currency. All currency amounts in this Agreement are in U.S. funds unless expressly
otherwise provided.
1.5 Successors and Assigns. This shall enure to the benefit of and be binding upon the
parties hereto, their respective heirs, legal representatives, successors, and assigns.
2.1 Construction of Home. Contractor agrees to build the Home on the Property in
accordance with the terms and conditions of this Agreement and in the manner provided
for in this Agreement. Contractor will use its best efforts to achieve Substantial
Completion of the Home within [Number of Months it is expected to take to Complete
Construction of Home] months after the Commencement Date.
2.2 Specifications of Home. The Home shall be constructed in accordance with the layout
specified in Schedule “A” hereto and the details and finishes specified in Schedule “B”
hereto, and shall be constructed in accordance with the plans and drawings mutually
approved by the parties hereto.
2.3 Changes. There shall be no changes to the layout, details, specifications, drawings or
finishes of the Home unless such changes have been mutually agreed to in writing by the
parties hereto.
2.4 Access to Home. Owner shall have access to the Home during construction at reasonable
times, provided that Owner gives Contractor reasonably prior notice requiring any such
access.
2.5 Control over Construction. Contractor shall have total control over the construction of
the Home and shall effectively direct and supervise the construction of the Home so as to
ensure conformity with this Agreement. Contractor shall be solely responsible for
construction means, methods, techniques, sequences, and procedures and for co-
ordinating the various parts of the construction of the Home under this Agreement.
3.1 Contract Price.Owner agrees to pay Contractor the actual cost to Contractor of all labour
(including his own time at the rate of $[hourly rate] per hour), materials, permits and all
other proper charges in connection with this Agreement, plus a commission of
[Commission Percentage]% on the total cost aforesaid; provided that in any event the
total cost plus commission shall not exceed the sum of $[Maximum Commission
Amount] and Owner shall not be liable to pay more than the aforementioned sum except
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for extras, agreed to in writing, and the commission on them. Contractor shall invoice
Owner in accordance with the payment schedule attached hereto as Schedule “C”
3.2 Subcontracts, Discounts. Contractor shall order all materials and shall take out all
subcontracts, and shall endeavour to obtain all discounts, the saving to be passed on to
Owner.
3.3 Lien Holdback. The lien holdback shall be withheld in accordance with the applicable
lien legislation when paying for trades, materials and subcontractors.
3.4 Interest on Overdue Payments. If Owner fails to make payments as they become due
under the terms of this Agreement, interest at the rate of eighteen percent (18%) per
annum on such unpaid amounts shall also become due and payable until payment. Such
interest shall be compounded on a monthly basis.
ARTICLE 4 - DELAYS
4.1 Delay Caused by Owner. If Contractor is delayed in the completion of the construction
of the Home by an action or omission of Owner or anyone employed or engaged by them
directly or indirectly, contrary to the provisions of this Agreement, then the Term shall be
extended for such reasonable time as may be required by Contractor, and Contractor shall
be reimbursed by Owner for reasonable costs incurred by Contractor as the result of such
delay.
4.2 Delay Caused by Public Authority. If Contractor is delayed in the completion of the
construction of the Home by a stop work order issued by a court or other public authority
and providing that such order was not issued as the result of an act or fault of Contractor
or any person employed or engaged by Contractor directly or indirectly, then the Term
shall be extended for such reasonable time as may be required by Contractor and
Contractor shall be reimbursed by Owner for reasonable costs incurred by Contractor as
the result of such delay.
4.3 Unavoidable Delay. If Contractor is delayed in the completion of the construction of the
Home by labour disputes, strikes, lock-outs (including lock-outs decreed or
recommended for its members by a recognized contractors' association, of which
Contractor is a member or to which Contractor is otherwise bound), fire, unusual delay
by common carriers or unavoidable casualties, or without limit to any of the foregoing,
by a cause beyond Contractor's control, then the Term shall be extended for such
reasonable time as may be required by Contractor. The extension of time shall not be less
than the time lost as the result of the event causing the delay, unless Contractor agrees to
a shorter extension. Contractor shall not be entitled to payment for costs incurred by such
delays unless such delays result from actions by Owner.
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5.2 Failure to Pay. Contractor may notify Owner in writing that Owner is in default of
Owner's contractual obligations if Owner fails to pay Contractor when due any amounts
owing under this Agreement.
5.3 Compensation for Default. If Contractor terminates this Agreement under the conditions
set out above, Contractor shall be entitled to be paid for all work performed to the date of
termination, including reasonable profit, for loss sustained upon products and
construction machinery and equipment, and such other damages as Contractor may have
sustained as a result of the termination of this Agreement.
6.1 Compliance with Laws. Contractor shall give the required notices and comply with the
laws, ordinances, rules, regulations, or codes which are or become in force during the
performance of the construction of the Home and which relate to the construction, to the
preservation of the public health, and to construction safety.
ARTICLE 7 - INSURANCE
7.1 Obligation to Insure. Contractor shall obtain and maintain, at its own expense, general
contractor’s liability insurance in connection with the construction of the Home.
ARTICLE 8 - WARRANTY
8.1 ONHWP Warranty. Contractor hereby warrants that the Home will be built in a good
and workmanlike manner consistent with the terms and conditions of this Agreement.
Contractor further warrants that:
9.1 Notices. All notices under this Agreement shall be in writing and shall be deemed to have
been duly given (i) on the date of service if served personally on the party to whom
notice is given; (ii) on the day of transmission if sent via facsimile transmission to the
facsimile number given below, provided telephone confirmation of receipt is obtained
promptly after completion of transmission; (iii) on the business day after delivery to an
overnight courier service; or (iv) on the fifth day after mailing, provided receipt of
delivery is confirmed, if mailed to the party to whom notice is to be given, by first class
mail, registered or certified postage prepaid, properly addressed and return receipt
requested, to the party as set forth below:
9.2 Waiver. Except as otherwise expressly set out herein, no waiver of any provision of this
Agreement shall be binding unless it is in writing.
9.3 Execution by Facsimile. The signature of any of the parties hereto may be evidenced by
a facsimile copy of this Agreement bearing such signature.
9.4 Counterparts. This Agreement may be signed in one or more counterparts, each of
which so signed shall be deemed to be an original, and such counterparts together shall
constitute one and the same instrument. Notwithstanding the date of execution of any
counterpart, each counterpart shall be deemed to bear the effective date set forth above.
9.5 Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of [City in which Property is Located (ie. Los Angeles)], [State in which
Property is Located (ie. California)].
9.6 Sections and Headings. The use of sections and headings is for convenience of reference
only and shall not affect the interpretation of this Agreement.
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9.7 Assignment. Neither party to this Agreement shall assign this Agreement or a portion
thereof without the written consent of the other, which consent shall not be unreasonably
withheld.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the date first
written above.
1. Signing of Agreement 5%
7. Plaster work, wood floor (not stain), finishing of the kitchen and
vanities cabinet, marbel and ceramic tile, fixture plumbing
installation, trim work 15%
8. On completion the painting, railing and drive way inter locking, and
backyard sod 5%
100%