CONSTRUCTION CONTRACT

THIS AGREEMENT is hereby entered into on this ………………day of …….……………. Two Thousand and ……………………………

 BETWEEN

  1. JRSG & Company, LLC, a limited liability company, owned by XXX with its principal place of business at [Insert Address], hereinafter referred to as (the “Contractor”)

   AND

  1. XXX, with the address at [Insert Address], hereinafter referred to as (the “Client”)

RECITALS

WHEREAS, the Client desires to have a new home constructed at [Project Location], Pearland, Texas, and

WHEREAS, the Contractor is engaged in the business of construction and is licensed to operate in the State of Texas;

WHEREAS, AAFMAA shall provide the necessary financing for the construction project hereinafter referred to as (“Financer”).

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, the parties agree as follows:

  1. PROJECT DESCRIPTION:

The Contractor agrees to construct a new residential home (the “Project”) located at [Project Address], Pearland, Texas, in accordance with the plans and specifications agreed upon by both parties, and subject to the terms and conditions of this Contract.

  1. TERM OF CONTRACT:

The term of this Contract shall begin on [Start Date] and continue for a duration of 8 months, unless extended by mutual written agreement.

  1. SCOPE OF WORK:

The Contractor agrees to perform all construction services necessary for the completion of the Project. The scope of work includes, but is not limited to:

  1. Site preparation and foundation construction.
  2. Framing, roofing, and exterior finishes.
  3. Plumbing, electrical, and HVAC installations.
  4. Interior finishes, including flooring, cabinetry, and painting.
  5. Landscaping and exterior improvements.
  6. PAYMENT TERMS:

The total contract price for the Project is [Total Contract Price], payable as follows:

  1. [Percentage]% upon signing this Contract as an initial deposit.
  2. [Percentage]% in monthly progress payments based on completed work stages.
  3. [Percentage]% upon substantial completion and final inspection.
  4. d) [Percentage]% upon final completion and issuance of Certificate of Occupancy.

The Client shall make payments directly to the Contractor. The financer (AAFMAA) shall disburse funds to the Client as required for Project financing.

  1. CHANGE ORDERS:

Any changes to the scope of work or specifications must be made in writing and signed by both parties. Change orders may result in adjustments to the contract price and project timeline.

  1. PERMITS AND APPROVALS:

The Contractor shall obtain all necessary permits, licenses, and approvals required for the construction. The Client shall provide any necessary documentation or cooperation to facilitate this process.

  1. INSURANCE:

The Contractor shall maintain adequate liability insurance, including workers’ compensation and property damage coverage, for the duration of the project.

  1. WARRANTIES:

Workmanship Warranty: The Contractor warrants that all work performed under this Contract shall be free from defects in workmanship for a period of [number] years from the date of substantial completion.

Manufacturer Warranties: The Contractor shall pass on to the Client all applicable manufacturer warranties for materials and equipment installed during the construction.

  1. INDEMNIFICATION:

The Contractor agrees to indemnify and hold harmless the Owner from any claims, damages, liabilities, or expenses arising from the Contractor’s negligence or willful misconduct during the construction.

  1. CONFIDENTIALITY:

Both parties shall maintain the confidentiality of any proprietary or sensitive information disclosed during the course of the Project.

  1. TERMINATION:

Termination for Convenience: The Owner may terminate the Contract for any reason by providing written notice to the Contractor. In such a case, the Contractor shall be entitled to payment for work completed up to the termination date and any costs directly attributable to the termination.

Termination for Cause: Either party may terminate the Contract for a material breach by the other party, provided written notice of the breach is given and the breaching party fails to cure the breach within [number] days.

  1. DISPUTE RESOLUTION MECHANISM:

In the event of any dispute arising out of or relating to this Agreement, the Parties agree to first attempt to resolve the matter amicably through mediation. If mediation does not result in a resolution, the dispute shall be settled through binding arbitration in accordance with the rules of the American Arbitration Association. The costs of mediation and/or arbitration shall be borne by the party initiating the dispute.

  1. GOVERNING LAW AND JURISDICTION:

This Agreement shall be governed by and construed in accordance with the laws of the State of Texas. Any disputes arising out of or in connection with this Agreement shall be subject to the exclusive jurisdiction of the courts in Houston, Texas.

  1. FORCE MAJEURE:

Neither party shall be liable for any failure or delay in performance under this Contract due to events beyond their control, such as natural disasters, acts of God, labor strikes, or government actions.

  1. ENTIRE AGREEMENT:

This Contract constitutes the entire understanding between the parties and supersedes all prior agreements, whether written or oral.

  1. COUNTERPARTS:

This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

  1. SEVERABILITY:

If any provision of this stipulation is found to be invalid, illegal, or unenforceable, the remaining provisions shall remain in full force and effect to the fullest extent permitted by law.

  1. AMENDMENT:

No modification or amendment of this Agreement shall be valid or binding unless it is in writing and duly executed by all parties hereto.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

Signed by or on behalf of:

THE UNDERSIGNED HAVE READ, FULLY UNDERSTOOD AND BY SIGNING

CONTRACTOR                                                CLIENT

NAME:                                                           NAME:

JRSG & COMPANY, LLC                                     XXXX             

SIGNATURE:                                                   SIGNATURE:

_______________________                            _________________________

DATE:                                                            DATE:

_______________________                             ________________________

 

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