CONSTRUCTION SERVICE AGREEMENT
This Construction Service Agreement (hereinafter referred to the "Agreement") is made
on______________ 2022 by and between _______________________ (hereinafter
referred to as “The Contractor”) and _______________________ (hereinafter referred
to as the “Owner and/or Client”) for services in connection with Construction of the
following described property: ____________________________________.
WHEREAS the Contractor desires to provide Construction services to the Owner/Client,
and the Owner/Client desires to obtain the said construction services from the
Contractor.
THEREFORE, in consideration of the mutual promises set forth below, the Contractor
and the Owner/Client shall agree to the terms and conditions herein contained in this
Contract and enumerated as follows:
1. Services.
The Contractor agrees to perform in a good and workmanlike manner and shall provide
all services, materials and labor for the construction of ________________________ on
the property located at ________________________ hereinafter referred to as the
"Worksite."
The Construction services shall include but not limited to the following; –
i. ____________________
ii. ____________________
2. Documents.
Any related documents, such as designs, drawings, or descriptions of work that relate to
the construction service to be provided shall be supplied by the Owner/Client unless the
Owner/Client explicitly instructs the Contractor to obtain the same on their behalf.
3. Payment Terms.
In consideration of the performance of the Agreement, the Owner/Client agrees to pay
to the Contractor in current funds ________________ as compensation for his services
as follows:
Twenty-five percent (25%) of the total cost of the project at the
beginning of the construction as a down payment.
Fifteen percent (15%) of the total cost of the project when in the
middle of the construction.
Fifteen percent (15%) of the total cost of the project when in the
middle of the construction.
Forty-five percent (45%) of the total cost of the project after
completion of the construction.
For delays in the Project, not the responsibility of the Contractor, there will be an
equitable adjustment in the fee to compensate the Contractor for his increased
expenses.
4. Schedule.
The parties herein agree that the Contractor will commence the contracted services on
________________ (hereinafter referred to as the “Effective date”) and complete the
work on __________________ (hereinafter referred to as the “Completion date”).
The Owner/Client agrees that the dates mentioned above are subject to changes in the
event of additional services of force majeure events.
5. Modifications.
Any party herein can request for any changes to the terms in the agreement and/or the
scope of work or service being performed as well as any cost associated with change
requests upon a written request (which will not be unreasonably withheld) and parties
will prepare an addendum to this contract.
6. Subcontracts.
A Subcontractor is a person or entity who has a direct contract with the Contractor to
perform any Work in connection with the Project. The term Subcontractor does not
include any separate contractor employed by the Owner/Client or the separate
contractors’ subcontractors.
All portions of the Work that the Contractor does not perform with his forces shall be
performed under subcontract.
No contractual relationship shall exist between the Owner/Client and any Subcontractor.
The Contractor shall be responsible for the management of the Subcontractors in the
performance of their work.
7. Termination.
The Owner/Client has the right to terminate this Agreement, without any penalty or
obligation within seven (7) business days after signing the contract by ordinary posted
mail or certified mail, not later than midnight of the seventh business day of the signing
of this agreement.
If the Owner/Client terminates the Agreement without any cause, he shall reimburse the
Contractor for any unpaid Cost of the Project due to him, plus any unpaid balance of the
Contractor’s Fee. In case of such termination of this Agreement, the Owner/Client shall
further assume and become liable for obligations, commitments, and unsettled claims
that the Contractor has previously undertaken or incurred in good faith in connection
with said Work.
8. Insurance.
The Contractor agrees to procure and maintain in full force and effect during the term of
this Contract, at its own cost, the following coverage:
Worker’s Compensation Insurance as required by the Labor Code of the State of
Pennsylvania and Employer’s Liability Insurance.
The Contractor shall procure and maintain, and shall cause any Subcontractor of
the Contractor to procure and maintain, the minimum insurance coverage listed
herein.
The parties hereto understand and agree that the contractor, its officers, and its
employees, are relying on, and do not waive or intend to waive by any provision
of this Contract, the monetary limitation or any other rights, immunities, and
protections provided by state and federal laws.
9. Permits.
The following construction-related permits will be necessary to complete the scope of
the work included in this Agreement:
______________________________
______________________________
The Contractor, in accordance with current state and federal laws, shall be required to
apply for and obtain all construction-related permits. The contractor shall not be deemed
responsible for delays in the work described in this Agreement caused by regulatory,
permit granting, or inspection agencies, authorities, or individuals.
10. Warranties.
The Contractor agrees to warrant the finished project for one year beginning from the
date of completion for one year following. The Contractor agrees to correct any defect
during the one (1) year period in a prompt manner from the time the Contractor is
notified. The Owner/Client shall notify the Contractor of a defect as soon as the defect is
discovered. All notices of defect shall be in writing and shall state with specificity, the
defect discovered.
No employee, agent, or subcontractor is authorized to make any representation or
warranty on behalf of the Contractor other than those contained in this Agreement. This
warranty is non-transferable.
11. Dispute Resolution.
The Contractor and the Owner/Client hereby mutually agree to have mutual
negotiations if there arises a dispute concerning this contract. If the negotiations fail,
parties may resolve the issue through Arbitration. The decision and award of the
arbitrator shall be final. The costs of such proceedings shall be borne equally by both
parties.
12. Indemnification.
The Owner/Client agrees to indemnify and hold harmless the Contractor and its
employees, from and against all liability, claims, demands, and expenses, including
court costs and attorney fees, on account of any injury, loss, or damage, which may
arise out of or are in any manner connected with the work to be performed under this
Contract, if any such injury, loss or damage is caused in whole or in part by or is
claimed to be caused in whole or in part by, the negligent acts, errors, or omissions of
the Contractor, any Subcontractor of the Contractor, or any officer, employee, or agent
of the Contractor.
The obligations of this Section shall not apply to damages which the Contractor shall
become liable by final judgment to pay to a third party as the result of the negligent act,
error, or omission of the Contractor.
13. Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the
state of Pennsylvania.
14. Force Majeure.
Force Majeure means an event which a diligent party could not have reasonably
avoided in the circumstances, which is beyond the control of a party and includes but is
not limited to, war, riots, civil disorder, earthquake, storm, flood, or adverse weather
conditions, strikes, lockouts or other industrial action, terrorist acts, confiscation, or any
other action by government agencies.
A Party’s failure to fulfill its obligations due to Force Majeure, shall not be considered a
breach of this agreement provided that the party has taken all reasonable precautions,
due care, reasonable alternative measures, and minimal delay all to carry out the terms
of this agreement.
15. Severability.
If any term, clause, or provision hereof is held invalid or unenforceable by a court of
competent jurisdiction, such invalidity shall not affect the validity or operation of any
other term, clause, or provision, and such invalid term, clause, or provision shall be
deemed to be severed from the Agreement.
IN WITNESS WHEREOF, each of the Parties has executed this Contract; –
Signed by the CONTRACTOR; Signed by the OWNER;
Signature:
____________________________
Signature:
___________________________
Name:
________________________________
Name:
_______________________________
Date:
_________________________________
Date:
_______________________________
Telephone:
____________________________
Telephone:
___________________________
Email Address:
________________________
Email Address:
_______________________
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