Construction Contract

This agreement is made on the date written above our signatures between
Contractor Name: __________________________________ (Contractor) and
Owner Name: _____________________________________ (Owner).
Contractor
Contractor Name: __________________________________
Address __________________________________________
Address __________________________________________
City _________________________________________, State:_________ Zip:__________
Work Phone Number: ___________________________________________
Cell Phone Number: ____________________________________________
Fax Number: __________________________________________________
Email Address: ________________________________________________
License Number: _______________________________________________
Contractor Name: __________________________________ will be referred to as Contractor
throughout this agreement.
Owner
Owner Name: _____________________________________
Address: _________________________________________
Address: _________________________________________
City: ___________________________________, State: ___________ Zip: ___________
Day Phone Number: __________________________________________________
Cell Phone Number: __________________________________________________
Fax Number: __________________________________________________
Email Address: __________________________________________________
Owner Name: _____________________________________ will be referred to as Owner throughout
this agreement.
The Construction Site
Address: _________________________________________
Address: _________________________________________
City: __________________________________________, Alabama Zip: ___________
I.

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 II. Project Description
A. For a price identified below, Contractor agrees to complete home improvements (identified as the
Project in this agreement) for Owner.
III. Contract Price
A. In addition to any other charges specified in this agreement, Owner agrees to pay Contractor
$____________________ for completing the Work described as the Project.
IV. Allowances
A. This Contract Price includes an allowance for an item to be selected later by Owner.
1. $___________________ for ___________________________________________________.
Installation will be by Contractor at a cost included in the Contract Price.
The allowance price covers the cost of:
Materials
Taxes
Delivery
Handling on the Job Site
V. Scheduled Start of Construction
A. Work under this agreement will begin within _______ Calendar Days after the following
contingencies have been met.
1. Complete Plans and Specifications have been approved and initialed by both Owner and
Contractor.
2. Owner has obtained a construction loan or other financing acceptable to Contractor.
3. Owner has obtained all architectural approvals from subdivision or neighborhood authorities.
4. All appropriate building permits have been issued.
VI. Scheduled Completion of Construction
A. Work under this agreement will be Substantially Complete within _______ Calendar Days after
the date construction begins.
VII. Documents Incorporated
A. This agreement incorporates by reference certain disclosures and notices required by federal and
state law. The following documents are incorporated as though included in full as part of this agreement.
1. Notice of Right to Cancel under Regulation Z (in duplicate)
B. This agreement incorporates by reference certain documents which define and describe the Work
to be done. The following documents are incorporated as though included in full as part of this
agreement.
1. Plans
Plans dated ___/___/_____
Consisting of _____ sheet(s)
Prepared by ___________________________________________
Last changed on ___/___/_____
And further identified as ______________________________________

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2. Specifications
Specifications dated ___/___/_____
Consisting of ____ sheet(s)
Prepared by _________________________________________
Last changed on ___/___/_____
And further identified as ___________________________________
3. Proposal (Estimate or Bid)
Proposal (Estimate or Bid) dated ___/___/_____
Consisting of ____ sheet(s)
For the amount of $__________________
Entitled _______________________________________________
And further identified as ____________________________________________
Reference to Contractor's proposal dated ___/___/_____ is for convenience only. Other Contract
Documents identify the Work to be completed under this agreement.
VIII. Ownership of Plans
A. Plans, Drawings, Specifications and copies prepared for use in construction under this agreement
are the property of Contractor. Contractor retains all common Law and statutory rights to these Plans,
Drawings and Specifications. Owner agrees that these documents will not be used on any other project
and, with the exception of one record set to be retained by Owner, will be returned to Contractor on
request.
IX. Scope of Work
A. Contractor shall supervise and direct the Work and accepts responsibility for construction means,
methods, techniques, sequences and procedures required to complete the Project in compliance with the
Contract Documents.
X. Cutting and Patching
A. The color, texture and planes between existing and new materials might not match exactly.
Contractor will use due diligence to create the best match possible. Owner acknowledges that patched
surfaces may be detectable when construction is complete.
XI. Compliance with Law
A. Contractor and Owner mutually commit to use reasonable care to meet the Requirements of
state, federal and local Law when discharging their responsibilities under this agreement.
B. If Law enacted after the Contract Date changes the Scope of Work under this agreement,
Contractor and Owner will execute a Change Order adjusting the Contract Price and Contract Time to
accommodate the change in the Scope of Work.
XII. Permits and Fees
A. Contractor shall secure all permits, licenses and renewals required by government authority to
complete construction of the Project. If permits are required for Subcontracted Work, Subcontractors
will secure those permits. Owner shall assist Contractor in responding to requests for information from
the permit-issuing authority. Contractor shall provide Owner a copy of each permit, license and renewal
issued by government authority for the Project.
B. Contractor will pay the building permit fee, Plan check fee, business license fees for Contractor
and Subcontractors, and charges levied by government for testing, Inspection and Re-Inspection of the

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Project.
XIII. Taxes
A. Except as provided otherwise in this agreement, Contractor shall pay all federal, state, county,
and municipal sales, use, consumer, gross receipts, and excise taxes which are levied or become payable
as a result of completing the Work. Owner will pay all tax on materials furnished by Owner and all
property taxes levied on the land which comprises the Job Site.
XIV. Owner's Responsibilities
A. Owner affirms that Owner has the right to enter into this agreement and has the right to contract
for construction of the Project on the Job Site. Owner shall pay all taxes and assessments due on the Job
Site during the period of construction and shall take all reasonable actions required to protect marketable
title to the Job Site.
B. On request of Contractor, Owner shall provide clear and convincing evidence that Owner has
access to funds committed to payment of the unpaid balance of the Contract Price. Owner shall inform
Contractor of any significant change in the availability of funds committed to make payments required
under the Contract Documents. Failure of Owner to comply with the terms of this paragraph shall
relieve Contractor of the obligation to begin or continue the Work.
C. Owner will not interfere with or permit others to interfere with, stop, hinder, or delay completion
of the Work by Contractor or Subcontractors except as provided under this agreement.
D. On written request from Contractor, Owner shall identify (1) The legal description of the
property being improved, (2) Whether there is a Surety Bond in effect on the improvement Project and,
if so, the name and last known address of the Surety and a copy of the Bond, and (3) Whether there are
any prior recorded liens or security interests on the real property being improved and, if so, the name
and address of the person having the lien or security interest.
XV. Construction by Others
A. Owner shall neither hire nor retain Separate Contractors, Subcontractors, employees or agents of
Owner to perform Work on the Job Site while Work is being done under this agreement by Contractor.
XVI. Representations by Contractor
A. Owner has reported to Contractor all conditions known to Owner which may not be apparent to
Contractor and which might significantly increase cost of the Work or delay completion. These
concealed conditions include, but are not limited to, hazards on the Job Site, unsuitable soil conditions,
prior Defective Work of others, latent Defects in the Plans or Specifications, earlier attempts to do
Similar or related Work, and obligations imposed by government.
XVII. Disclaimer by Owner, Reliance by Contractor
A. Owner has provided Contractor with information on subsurface or concealed conditions at the
Job Site. Except to the extent that Contractor knows this information to be false, Contractor is entitled to
rely on the accuracy of this information.
XVIII. Discrepancy Between Plans and Field Conditions
A. If any concealed structure, water, power, waste, drain or gas line is uncovered or revealed during
construction which is not as indicated in the Contract Documents or is inconsistent with information
provided by Owner, Contractor shall promptly, and before any such structure or line is disturbed or
damaged (except in an Emergency), notify Owner. Contractor shall submit a Claim for a Change Order

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which covers the additional cost incurred as a result of such structure, water, power, waste, drain, or gas
line uncovered or revealed during construction.
XIX. Differing Site Conditions
A. Contractor shall promptly, and before the conditions are disturbed, give a written notice to
Owner on encountering unforeseeable conditions adversely affecting the Work. Owner shall investigate
the site conditions promptly after receiving notice. If the conditions cause an increase in cost to
Contractor or the time required for performing any part of the Work and were not reasonably foreseeable
by an experienced Contractor, an equitable adjustment shall be made under this clause and the contract
modified in writing accordingly.
B. If concealed or unanticipated conditions require a change in the Plans or Specifications, Owner
will issue a Change Order modifying the Contract Documents, Contract Price and Contract Completion
Date, if any.
C. Anything in this contract notwithstanding, Contractor is entitled to rely on express or implied
representations concerning site conditions made by Owner and those employed by Owner regardless of
whether those representations are made in Contract Documents or otherwise.
XX. Payment Plan
A. Owner will pay to Contractor the Contract Price in installments consisting of an initial payment,
progress payments, and a final payment on completion of the Work.
XXI. Initial Payment
A. On initial delivery of materials to the Job Site, Owner shall pay to Contractor $______________.
B. The initial payment is refundable to Owner, less actual cost to Contractor, if Owner is not able to
obtain a commitment for construction financing in an amount adequate to complete the Work.
XXII. Progress Payments
A. Schedule of Progress Payments
1. Progress payments are due as each phase of the Work is completed.
a) Amount due when Job Phase 1 is complete: $_____________________
Job Phase 1 is complete when ____________________________________________________.
b) Amount due when Job Phase 2 is complete: $_____________________
Job Phase 2 is complete when _____________________________________________________.
c) Amount due when Job Phase 3 is complete: $_____________________
Job Phase 3 is complete when _____________________________________________.
d) Amount due when Job Phase 4 is complete: $_____________________
Job Phase 4 is complete when ___________________________________________.
e) Amount due when Job Phase 5 is complete: $_____________________
Job Phase 5 is complete when _____________________________________________________.
f) Amount due when Job Phase 6 is complete: $_____________________
Job Phase 6 is complete when _________________________________________________.
B. Processing of Progress Payments
1. No less than 2 Calendar Days before each progress payment is due under the terms of this
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contract, Contractor shall provide Owner with an application for payment (invoice) in a form which
complies with generally accepted trade practice.
2. Except as provided otherwise in this agreement, Owner shall pay the amount due within 2
calendar days after approval of any application for initial, progress or final payment.
3. Unless otherwise provided in the Contract Documents, applications for payment may include, at
the option of Contractor, itemized charges for materials and equipment not yet incorporated in the Work
but delivered and suitably stored on the Job Site. Application for payment for stored materials and
equipment shall include a bill of sale or other confirmation that stored materials and equipment are the
property of Owner.
XXIII. Contract Allowances
A. The Contract Price includes the sum of all contract allowance items identified in this agreement.
The price listed for each contract allowance item is a preliminary estimate made before actual selection
by Owner of the item to be installed. Contractor makes no representation that purchase and Installation
of any contract allowance item can be performed for the contract allowance price. Cost to Owner for any
contract allowance item may be more or less than the contract allowance price.
B. If the cost to Contractor for a contract allowance item is more or less than the allowance price,
the Contract Price shall be adjusted for the difference by a Change Order.
C. Selection by Owner of contract allowance items shall be submitted in writing to Contractor. At
the request of Contractor, Owner shall verify selection of each contract allowance item with the Material
Supplier and provide Contractor with confirmation that the order is correct.
D. If selection of any contract allowance item by Owner delays the Work, the Contract Completion
Date shall be extended by the equivalent of the delay and Contractor shall be entitled to recover for the
cost of delay, including liquidated damages, shutdown or startup expense, lost profits, or consequential
damages.
XXIV. Interest
A. Payments due and not paid under the Contract Documents shall bear interest from the date
payment is due at a monthly rate of _______ percent.
B. When payment is withheld pending settlement of a bona fide dispute on the quantity, quality, or
timeliness of the Work, interest shall accrue only on the amount ultimately paid.
C. Any interest which remains unpaid at the end of any 30-Calendar Day period shall be added to
the principal amount due and thereafter shall accrue interest at the same rate as the principal.
XXV. Liens and Waivers
A. Contractor will ensure that Subcontractors, tradesmen and Material Suppliers working under
direction of Contractor are paid when due to avoid the exercise of lien rights provided by state Law.
XXVI. Waivers of Lien
A. With each application for payment, Contractor shall provide to Owner (1) Conditional waivers of
lien from Contractor, from each Material Supplier, and from each Subcontractor to the Project
confirming payment for all Work and materials covered by the application, and (2) Certification from
each Material Supplier and Subcontractor covered in a prior application for payment that previous
conditional waivers of lien have become unconditional. Waivers of liens shall be in a form satisfactory
to Owner, title insurer, and lenders. Contractor shall furnish any supplemental waivers of lien as may be

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reasonably required by Owner, title insurer, or lenders. Conditional waivers of lien become
unconditional on receipt of the payment which is requested.
XXVII. Details on Lien Claims
A. On request of Contractor, Owner shall provide to Contractor a legal description of the Site and
all information about the Project as may be required by Contractor, Subcontractors, Material Suppliers,
or tradesmen to enforce lien rights in Alabama.
XXVIII. Final Payment
A. Contractor will submit an application for final payment to Owner when the Work has been
completed in compliance with the Contract Documents. If Owner agrees that Work has been completed,
payment is due Contractor for the entire unpaid balance of the contract amount (including any
Retainage).
B. Making of final payment constitutes waiver of all Claims by Owner against Contractor except
those Claims previously made in writing and delivered to Contractor and those obligations otherwise
provided by this agreement or by operation of Law.
C. The acceptance of final payment by Contractor shall constitute a release by Contractor of known
Claims against Owner arising out of this contract except those Claims which (1) Have been made in
writing and identified by Contractor as not having been settled at that time, or (2) Are based on fraud or
misconduct by Owner.
D. Owner will notify Contractor of the date when notice of Final Completion is recorded.
E. If completion of the Work is delayed unreasonably at no fault of Contractor, Contractor shall be
entitled to final payment for all Work completed (including Retainage) without prejudice to the right of
Contractor to complete the Project at a later date and without prejudice to the right of Owner to make
Claims against Contractor for Defects in Work completed.
XXIX. Changes in the Work
A. Except as provided elsewhere in this agreement, no change to this contract (including
Modification, clarification, interpretation or correction of the Plans or Specifications) shall be made
without mutual agreement and a written Change Order signed by Contractor and Owner identifying the
change, the cost of the change, and the effect on Project Schedule, if any.
B. Contractor is authorized to make minor changes in the Work which are in the interest of Owner,
do not materially alter the quality or performance of the Work, and do not affect the cost or time of
performance, and comply with applicable Laws, codes, ordinances and regulations. Contractor will
inform Owner of each minor change made in the Work.
C. Other clauses in this agreement notwithstanding, there will be no reduction in the value of the
Work without a written Change Order.
XXX. Defective Work
A. General Requirements
1. On written notice from Owner, Contractor shall promptly remove from the Job Site all Work or
materials not in compliance with the Contract Documents, whether or not such rejected Work or
materials are incorporated in the Project. Contractor shall promptly repair or replace such rejected Work
or materials at no cost to Owner.

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 B. Rejected Work - Contractor's Rights
1. If Contractor disagrees with a decision on rejection of Work or materials, Contractor is entitled to
an expedited resolution of the issue under the provisions of this agreement which cover dispute
resolution. Pending resolution of this dispute, the obligation of Contractor to make correction is
suspended. The Contract Time, if any, is extended for the period the dispute remains unresolved.
2. Owner acknowledges and agrees that it may be inappropriate or unreasonably expensive to
replace, refabricate or refinish building components with minor Defects or which are damaged slightly
due to wear and tear commonly associated with the construction process. Contractor may, at the sole
discretion of Contractor, (1) Correct minor Defects using procedures commonly accepted as good
construction practice, or (2) Conclude that a cosmetic Defect is acceptable under good construction
practice and take no corrective action.
XXXI. Call-Backs
A. On written notice from Owner within 30 Calendar Days after Substantial Completion (the call-
back period), Contractor shall promptly repair or replace any portion of the Work which becomes
Defective due to faulty materials or workmanship.
B. The obligation of Contractor to repair or replace Defects due to faulty materials or workmanship
during the call-back period is in addition to and does not limit any other remedy Owner may have under
the Contract Documents, Law, or any warranty provided by Contractor or others. This call-back remedy
does not limit the liability of Contractor for Defective Work or limit the time within which proceedings
may be commenced to enforce rights and obligations under this agreement.
C. Failure of Owner to give notice of a Defect within the call-back period constitutes a waiver of
rights to repair or replacement of that Defect.
XXXII. Warranty
Contractor warrants that the Work shall be free of Defects identified in this agreement for the period
specified in this agreement.
A. General Requirements
1. Except as otherwise provided in this agreement, the warranty period shall begin from the date of
Substantial Completion.
2. Work done by Contractor in compliance with warranty provisions of this agreement does not
extend the period of the warranty.
3. Contractor shall deliver to Owner all warranties provided by vendors and manufacturers of
materials and equipment used to complete the Project. Contractor shall have no obligation under
warranties provided by others except to render any assistance that Owner may require in enforcing the
terms of those warranties.
4. Except as provided in this agreement, and to the extent permitted by Law, Contractor disclaims
all warranties, whether express or implied, whether of fitness for purpose, merchantability, habitability
or workmanlike completion.
5. Failure of Owner to give notice of a breach of warranty within the warranty period constitutes a
waiver of the right to repair or replacement by Contractor.
6. To make a warranty Claim under this agreement, Owner must send a clear and specific written
complaint to Contractor at the following address within 60 Calendar Days of discovering Defects, unless

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otherwise specified in the list of items covered under this warranty. Contractor shall make repairs,
replacements and corrections promptly and at no expense to Owner.
Contractor Name: __________________________________
Address __________________________________________
Address __________________________________________
City _________________________________________, Zip:__________ State:_________
7. Upon receipt of written notification, Contractor must notify Owner within 30 Calendar Days of a
disputed Claim. Contractor and Owner agree to a dispute resolution process as specified in the Contract
Documents. Under the Magnuson-Moss Warranty Act and under this warranty, suit may not be filed
against Contractor until the Claim has been submitted for informal dispute settlement and a decision has
been reached, or a waiting period of 40 Calendar Days has been exceeded for a decision, following the
submission of a request for warranty repair, whichever comes first. State or federal Laws may permit
filing a suit without the waiting period, despite the terms of this agreement.
8. Owner must provide Contractor with reasonable access during the Work Day to perform
obligations created by this warranty. If Owner fails to provide access, Contractor is relieved of the
obligation to make repairs for which access has been denied.
9. Upon repair or replacement of the Defect, Owner must sign and deliver to Contractor a full
release of all legal obligations with respect to the Defect.
B. Exclusions from Warranty
1. The warranty provided by this contract does not cover any of the following items or conditions:
a) Damages or Defects that result from circumstances beyond the control of Contractor including,
but not limited to, accidents, fire, explosion, smoke, falling objects, damage from aircraft, vehicles,
lightning, windstorm, hail, flood, mudslide, earthquake, volcanic eruption, wind-driven water, or
unforeseeable change in the underground water table.
b) Damage or Defects in materials or workmanship supplied by anyone other than Contractor,
employees of Contractor, agents or those working under the direction of Contractor, including
Subcontractors.
c) Damages or losses that result from water leakage.
d) Dampness, condensation or standing water due to failure of Owner to maintain adequate
ventilation or other cause beyond the control of Contractor.
e) Any Claim for warranty that is not filed in compliance with the terms required by the Contract
Documents.
f) Claimed Defects that are obvious, apparent and accepted at the time of completion.
g) Damages caused or made worse by:
(1) Failure of Owner or anyone other than Contractor, employees of Contractor, agents or
Subcontractors to comply with the warranty Requirements of the manufacturer.
(2) Failure of Owner to give Contractor notice of Defects within a reasonable time.
(3) Loss that results from failure of Owner to take timely action to mitigate or minimize damage.
2. Contractor has no liability for incidental or consequential damages from breach of any warranty
provided by this agreement insofar as the loss claimed is covered by insurance of Owner or for which
Owner has a right of recovery from any other party.
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 C. Basic Warranty Coverage
1. Warranty on Cabinets
a) It is a breach of warranty if cabinet doors or drawers bind or stick during the first 180 days.
Occasional adjustment of doors and drawers is necessary as part of routine building maintenance.
Defects due to abuse, impact, modification, or improper maintenance are not covered under this
warranty.
b) Cabinet materials shrink as they dry. It is a breach of warranty if, during the first 180 days,
cabinet doors or drawer fronts are found to have visible cracks in excess of 1/8 inch by 2 inches. Defects
due to abuse, impact, modification, or improper maintenance are not covered under this warranty.
c) It is a breach of warranty if cabinet doors or drawer faces warp more than 1/4 inch in 12 inches
during the first 180 days. Some movement can be expected when natural wood products adjust to
moisture levels within a building. Cabinets that warp due to abuse or prolonged contact with moisture
are not covered under this warranty.
d) It is a breach of warranty if closed cabinet doors have gaps in excess of 1/4 inches by 2 inches
during the first 180 days. Cabinet doors that become misaligned due to abuse or improper loading are
not covered under this warranty.
e) It is a breach of warranty if, during the first 180 days, cabinet doors do not stay closed when
shut. Frequent use of cabinet doors can result in misalignment. Occasional adjustment of cabinet
hardware is a part of routine building maintenance.
f) Cabinet materials shrink as they dry. It is a breach of warranty if, during the first 180 days,
visible gaps greater than 1/4 inch by 3 inches open between the wall or ceiling and any cabinet. Smaller
gaps are not covered under this warranty.
g) It is a breach of warranty if a cabinet, a cabinet corner or a cabinet face is found to be more than
1/4 inch out of alignment during the first 180 days unless the Defect is caused by abuse, impact,
modification or improper loading.
2. Warranty on Carpentry, Interior Finish
a) It is a breach of warranty if a shelf fails due to Defective workmanship during the first 180 days.
Shelves should be supported by brackets fastened securely to framing. Any shelf is subject to
overloading. Defects due to overloading, modification, or improper maintenance are not covered under
this warranty.
3. Warranty on Resilient Flooring
a) It is a breach of warranty if vinyl flooring develops surface bubbles more than 1/16 inch higher
than adjacent surfaces during the first 180 days. Contractor may puncture vinyl flooring material to
release trapped air as part of the repair. Defects that result from abuse, impact, modification, normal
wear, or improper maintenance are not covered under this warranty. Fading, slip resistance, abrasion
resistance, stain resistance, freeze-thaw stability, durability, compressive strength, moisture sensitivity
and texture retention of vinyl or resilient flooring may be covered under the manufacturer's warranty, but
are not covered under this warranty. Removing mold from vinyl floor materials is a part of normal
building maintenance and is not covered under this warranty.
b) Joints are required in resilient sheet flooring when room dimensions exceed roll widths. It is a
breach of warranty if, during the first 180 days, joints in resilient flooring leave a gap between pieces of
more than 1/8 inch and more than 12 inches long. The visibility of joints in resilient flooring may be

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exaggerated by the color, pattern, and texture of the material, and by reflected light, such as from a large
window. Defects that result from abuse, modification, or improper maintenance are not covered under
this warranty.
c) It is a breach of warranty if, during the first 180 days, resilient flooring is found to be installed
with stains, discoloration or faded colors. Stain resistance does not mean that resilient flooring won't
stain. Staining and loss of gloss can result from normal use and is not necessarily an indicator of
Defective material or workmanship. It is normal for resilient flooring to vary slightly from display
Samples in color and texture. Display Samples come from different dye lots and may be used for many
years. Over time, color, texture, and feel of the Sample may change with handling. The color and gloss
of resilient flooring can fade under sunlight and traffic. Slight variations are common within a specified
color or pattern. Variations will be greater when material is selected from differing dye lots.
Manufacturing Defects may be covered under the manufacturer's warranty, but are not covered under
this warranty.
d) It is a breach of warranty if resilient flooring is found to be installed out of compliance with the
recommendations of the manufacturer during the first 180 days. All manufacturers recommend that the
surface on which resilient flooring is laid be free of bumps, protrusions, or irregularities such as
fasteners, loose knots, or free aggregate. Defects that result from sharp objects such as spike heel shoes
or roller blades, moisture, hydrostatic pressure, alkali in the subfloor, heavy sunlight penetration,
ultraviolet ray exposure, pallet jack or fork lift traffic, or contact with caustic or corrosive liquids, are
not covered under this warranty. The flooring manufacturer may offer a warranty against premature wear
or fading. Premature wear and fading are not covered under this warranty.
4. Warranty on Lighting
a) It is a breach of warranty if, during the first 180 days, a lighting fixture becomes discolored or
fails to operate normally due to faulty Installation by Contractor. Defects in lighting fixtures caused by
abuse, improper maintenance, or exceeding the recommended maximum bulb wattage are not covered
under this warranty.
5. Warranty on Plumbing Systems
a) It is a breach of warranty if a water supply, drain, or vent line to a plumbing fixture develops a
leak during the first 180 days due to a Defect in materials or workmanship. It is a breach of warranty if,
during the first 180 days, a plumbing fixture is found to be installed out of compliance with either the
recommendations of the manufacturer or the building Plans or Requirements of the building code.
Inspection and maintenance of caulking and sealants around plumbing fixtures is a part of normal
building maintenance, and is not covered under this warranty. Defects that result from abuse,
condensation, modification, the shrinkage of materials as they age, or improper maintenance are not
covered under this warranty.
b) It is a breach of warranty if, during the first 180 days, any part of the plumbing system fails to
deliver water or discharge wastes due to a Defect in materials or workmanship or failure of Contractor to
comply with the applicable plumbing code or building Plans. Any plumbing vent or waste line can be
obstructed by frost or debris. Removing frost and debris from vent lines is a part of normal building
maintenance, and is not covered under this warranty. Defects in plumbing supply, waste, or vent lines
that result from abuse, modification, or improper maintenance are not covered under this warranty.
c) It is a breach of warranty if, during the first 180 days, a faucet, plumbing fixture or valve runs or
drips when fully closed or turned off. Defects that result from abuse, modification, or improper
maintenance are not covered under this warranty.

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d) It is a breach of warranty if, during the first 180 days, plumbing fixtures, fittings or trim are
found to be installed out of compliance with recommendations of the manufacturer or out of compliance
with the plumbing code. Flaws in the appearance or performance of plumbing fixtures, fittings or trim
may be covered under the manufacturer's warranty, but are not covered under this warranty. Defects that
result from abuse, improper maintenance, or modification are not covered under this warranty.
e) It is a breach of warranty if plumbing supply lines are found to be out of compliance with
approved Plans or the building code during the first 180 days. Severe weather can cause any plumbing
supply line to freeze and burst. Defects in plumbing supply lines caused by cold weather are not covered
under this warranty. When temperature of the building envelope is not controlled during cold weather,
it's a normal part of building maintenance to close the main supply value and drain water from the
supply system. Exterior hose bibs should have garden hoses disconnected and drained. Valves for
exterior hose bibs should be left open. Interior valves should be shut off. Defects in plumbing supply
lines caused by abuse, modification, or improper maintenance are not covered under this warranty.
f) Certain combinations of temperature and indoor humidity may naturally cause condensation to
accumulate on pipes and plumbing fixtures. Eliminate excess condensation by increasing ventilation,
controlling humidity, or insulating the pipes affected. Accumulation of condensation on plumbing pipes
and fixtures is not a Defect and is not covered under this warranty.
g) All plumbing drain and waste lines can be obstructed by excessively large or dense objects, by
the invasion of roots, or by backup of the public or private sewer. Keeping plumbing drain and waste
lines free of obstructions is a part of normal building maintenance, and is not covered under this
warranty. It is a breach of warranty if plumbing drain, waste, or vent lines are found to be installed out
of compliance with the applicable plumbing code or out of compliance with the building Plans during
the first 180 days. The following constitute abuse or improper maintenance of plumbing drain or waste
lines, and are not covered under this warranty: (1) Use that exceeds that design standards of the system,
(2) Disposing of non-biodegradable items through the system, (3) Connecting the system to a sump
pump, roof drain, or backwash from a water conditioner or pool filter, (4) Covering a leach field with a
surface that is impermeable to water, (5) Driving or parking vehicles over the leach field, and (6) Failing
to periodically pump the septic tank.
h) It is normal to hear the sound of water flowing through drain and supply pipes. It is also normal
to hear the sound of pipe expanding or contracting slightly in response to heat or cold. Water hammer is
a sudden thump or banging in water supply lines that occurs when water flow to a faucet or fixture stops
abruptly. Water hammer can do serious damage to a plumbing system, especially when water at high
pressure is shut off very quickly, such as with an automatic valve. A plumbing system subject to water
hammer should be designed with a pressure-regulating valve or an air chamber to reduce the noise and
potential for damage from water hammer. Failure to install a pressure-regulating valve or an air chamber
is not a breach of warranty if the valve or chamber is not part of the contract and is not required by the
building code. The sound of water hammer will be obvious to anyone present in the building.
Progressive damage from an obvious water hammer problem is not covered under this warranty. On
request, Contractor will suggest a remedy for water hammer and quote a price for taking preventative
measures.
i) It is a breach of warranty if a faucet, shower head, or plumbing fixture is found to be installed
out of compliance with the applicable code or the building Plans during the first 180 days. Low water
pressure may cause reduced flow through any plumbing fixture. Water pressure varies in public water
systems and may be low at times of peak demand or when flow is reduced in water mains. Some
municipal codes require that plumbing fixtures, including faucets and shower heads, be equipped with
flow control devices to conserve water. Inadequate water flow at points of supply due to either low water

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pressure at the main or government regulation is not covered under this warranty.
j) It is a breach of warranty if, during the first 180 days, a bathtub or shower enclosure is found to
be installed out of compliance with either the building code or the manufacturer's recommendations.
Ensure that bathtub and shower enclosures are free of any chip, crack, scratch, blemish, or Defect at
Installation, and document any concerns. After Substantial Completion, only Defects resulting from
faulty workmanship of Contractor are covered under this warranty. Manufacturing Defects in bathtubs
and shower enclosures may be covered under the manufacturer's warranty, but are not covered under this
warranty. Bathtubs are heavy when filled and may cause the framing to flex and creak, even when
installed in compliance with both the manufacturer's instructions and the building code. Flexing and
creaking are not signs of failure, and are not covered under this warranty.
XXXIII. Contractor Claims
A. If Contractor claims that any instruction, Drawing, act or omission of Owner or any
representative of Owner, or any agency of government, increases costs to Contractor, requires extra time
or changes the Scope of Work, Contractor shall have the right to assert a Claim for such costs or time.
B. Unresolved Claims or disputes shall not cause Contractor to delay or suspend Work or for Owner
to delay or suspend payments as provided by this agreement. Continued performance by Contractor shall
not be deemed a waiver of any Claim for additional compensation or an extension of Time for
Completion. Contractor shall cooperate with Owner and representatives of Owner to mitigate potential
damages, delay and other adverse consequences arising out of the condition which is the subject of the
Claim.
XXXIV. Arbitration
A. Any controversy or Claim arising out of or relating to this contract or contract warranty or the
breach thereof which cannot be resolved by mediations shall be settled by arbitration administered by
the American Arbitration Association under its Construction Industry Arbitration Rules, and judgment
on the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof.
1. Any controversy or Claim arising out of or relating to this contract or contract warranty or the
breach thereof or a Change Order or addendum to this contract which cannot be resolved by mediations
shall be settled by arbitration administered by the American Arbitration Association under its
Construction Industry Arbitration Rules, and judgment on the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction thereof.
B. The location of arbitration hearings held under this agreement shall be the county in which the
Project is located unless agreed to otherwise by all Parties to the arbitration.
XXXV. Insurance
A. General Requirements
1. Contractor shall carry workers' compensation insurance and public liability insurance as required
by Law and regulation for the protection of Contractor and Owner during progress of the Work.
XXXVI. Interpretation of the Contract
A. Words and abbreviations defined in this contract are capitalized and should be understood as
defined. Words commonly used in the construction industry are to be understood in their recognized
technical or construction industry context. Any word not defined in this contract and which does not
have a well-known technical or construction industry meaning is to be understood as defined in the most
recent edition of the Merriam-Webster Collegiate Dictionary.

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B. Nothing in the Contract Documents shall be interpreted as requiring Contractor to violate any
Law or regulation imposed by government.
XXXVII. No Waiver of Contract Provisions
A. The failure of either Party to insist on strict performance of terms, covenants and conditions in
the Contract Documents shall not be construed as waiver of any term, covenant or condition in the
Contract Documents. Nor shall any custom or practice which may evolve between Contractor and
Owner be construed to waive or lessen the right of either Party to insist upon performance in strict
compliance with the Contract Documents.
XXXVIII. Dealing With Plan Defects
A. Contractor will rely on the Contract Documents as the final authority on what is included in the
Project. The Contract Documents were created to identify the labor, material and equipment required for
proper completion of the Project. The Contract Documents are defective if a reasonably skilled
construction contractor doing Similar Work in the community and following generally accepted trade
practice could not use the Contract Documents to identify each labor, material and equipment cost
required to complete the Project. Contractor bears no responsibility for defects in the Contract
Documents.
B. If inconsistent, the construction Drawings take precedence over the Specifications.
C. Except as specifically provided elsewhere in this agreement, inconsistencies shall be resolved by
giving precedence to the less restrictive, standard quality, less demanding provision in codes, safety
orders, Contract Documents, referenced manufacturers' specifications, and industry standards.
D. Pending clarification by Owner, Contractor shall perform no Work on any portion of the Project
requiring an interpretation of the Contract Documents. Contractor has no liability for Work done before
discovering the need for interpretation so long as that Work was done in good faith reliance on one of
the Contract Documents.
XXXIX. Severability
A. If any provision of this contract is interpreted or rendered invalid and unenforceable, then the
remainder of this contract shall remain in full force and effect.
XL. Cumulative Remedies
A. All rights and remedies provided to Contractor by the Contract Documents are cumulative and in
addition to and not in limitation of rights and remedies available to Contractor at Law or in equity.

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 Signatures
This contract is for immediate acceptance. Any delay in acceptance beyond ___/___/_____ will require
renegotiation of the terms of this agreement.
This agreement is entered into as of the date written below.
Owner Name: _____________________________________, Owner
______________________________ ______________________
(Signature) (Date)
______________________________
(Printed Name)
______________________________ ______________________
(Signature) (Date)
______________________________
(Printed Name)
Contractor Name: __________________________________, Contractor
______________________________ ________________
(Signature) (Date)
______________________________
(Printed Name and Title)

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 NOTICE OF RIGHT TO CANCEL UNDER REGULATION Z
(12 CFR 226.15(b) requires that each owner receive two copies of this notice.)
To: Owner
Re: Your right to cancel Project
You are entering into a transaction that will result in a security interest being placed on your home. You
have a legal right under federal law to cancel this transaction, without cost, within three business days
from whichever of the following events occurs last:
(1) The date of the transaction, which is _________________________________, or
(2) The date you receive your Truth in Lending disclosures, or
(3) The date you receive this notice of your right to cancel.
If you cancel this transaction, the security interest is also cancelled. Within 20 calendar days after we
receive your notice, we must take the steps necessary to reflect the fact that the security interest on your
home has been cancelled, and we must return to you any money or property you have given us or to
anyone else in connection with this transaction.
You may keep any money or property we have given you until we have done the things mentioned
above, but you must then offer to return the money or property. If it is impractical or unfair for you to
return the property, you must offer its reasonable value. You may offer to return the property at your
home or at the location of the property. Money must be returned to the address below. If we do not take
possession of the money or property within 20 calendar days of your offer, you may keep it without
further obligation.
How to cancel:
If you decide to cancel this transaction, you may do so by notifying us in writing at:
Contractor Name: __________________________________
Address __________________________________________
Address __________________________________________
City _________________________________________, State:_________ Zip:__________
___________________________________________
You may use any written statement that is signed and dated by you and states your intention to cancel, or
you may use this notice by dating and signing below. Keep one copy of this notice because it contains
important information about your rights.
If you cancel by mail or telegram, you must send the notice no later than midnight of
_______________________ (midnight of the third business day following the latest of the three events
listed above). If you send or deliver your written notice to cancel some other way, it must be delivered to
the above address no later than that time.
I WISH TO CANCEL.
______________________________ ________________
Signature Date
See the next page for important information about what happens if this agreement is cancelled.

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 Notice Required by 12 Code of Federal Regulation Section 226.15(d), Effects of Rescission
(1) When a consumer rescinds a transaction, the security interest giving rise to the right of rescission
becomes void, and the consumer shall not be liable for any amount, including any finance charge.
(2) Within 20 calendar days after receipt of a notice of rescission, the creditor shall return any money or
property that has been given to anyone in connection with the transaction and shall take any action
necessary to reflect the termination of the security interest.
(3) If the creditor has delivered any money or property, the consumer may retain possession until the
creditor has met its obligation under paragraph (d)(2) of this section. When the creditor has complied
with that paragraph, the consumer shall tender the money or property to the creditor or, where the latter
would be impracticable or inequitable, tender its reasonable value. At the consumer's option, tender of
property may be made at the location of the property or at the consumer's residence. Tender of money
must be made at the creditor's designated place of business. If the creditor does not take possession of
the money or property within 20 calendar days after the consumer's tender, the consumer may keep it
without further obligation.

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 NOTICE OF RIGHT TO CANCEL UNDER REGULATION Z
(12 CFR 226.15(b) requires that each owner receive two copies of this notice.)
To: Owner
Re: Your right to cancel Project
You are entering into a transaction that will result in a security interest being placed on your home. You
have a legal right under federal law to cancel this transaction, without cost, within three business days
from whichever of the following events occurs last:
(1) The date of the transaction, which is _________________________________, or
(2) The date you receive your Truth in Lending disclosures, or
(3) The date you receive this notice of your right to cancel.
If you cancel this transaction, the security interest is also cancelled. Within 20 calendar days after we
receive your notice, we must take the steps necessary to reflect the fact that the security interest on your
home has been cancelled, and we must return to you any money or property you have given us or to
anyone else in connection with this transaction.
You may keep any money or property we have given you until we have done the things mentioned
above, but you must then offer to return the money or property. If it is impractical or unfair for you to
return the property, you must offer its reasonable value. You may offer to return the property at your
home or at the location of the property. Money must be returned to the address below. If we do not take
possession of the money or property within 20 calendar days of your offer, you may keep it without
further obligation.
How to cancel:
If you decide to cancel this transaction, you may do so by notifying us in writing at:
Contractor Name: __________________________________
Address __________________________________________
Address __________________________________________
City _________________________________________, State:_________ Zip:__________
___________________________________________
You may use any written statement that is signed and dated by you and states your intention to cancel, or
you may use this notice by dating and signing below. Keep one copy of this notice because it contains
important information about your rights.
If you cancel by mail or telegram, you must send the notice no later than midnight of
_______________________ (midnight of the third business day following the latest of the three events
listed above). If you send or deliver your written notice to cancel some other way, it must be delivered to
the above address no later than that time.
I WISH TO CANCEL.
______________________________ ________________
Signature Date
See the next page for important information about what happens if this agreement is cancelled.

Page 18
 Notice Required by 12 Code of Federal Regulation Section 226.15(d), Effects of Rescission
(1) When a consumer rescinds a transaction, the security interest giving rise to the right of rescission
becomes void, and the consumer shall not be liable for any amount, including any finance charge.
(2) Within 20 calendar days after receipt of a notice of rescission, the creditor shall return any money or
property that has been given to anyone in connection with the transaction and shall take any action
necessary to reflect the termination of the security interest.
(3) If the creditor has delivered any money or property, the consumer may retain possession until the
creditor has met its obligation under paragraph (d)(2) of this section. When the creditor has complied
with that paragraph, the consumer shall tender the money or property to the creditor or, where the latter
would be impracticable or inequitable, tender its reasonable value. At the consumer's option, tender of
property may be made at the location of the property or at the consumer's residence. Tender of money
must be made at the creditor's designated place of business. If the creditor does not take possession of
the money or property within 20 calendar days after the consumer's tender, the consumer may keep it
without further obligation.

Page 19
 Change Order Agreement
Today's Date _____________________ Original contract date _____________________
Job Address _____________________ Original contract price $ ___________________
Job Address _____________________ Sum of previous changes $ _________________
City, ST, ZIP _____________________ Cost of this change $ ______________________
Contractor ______________________ Revised contract price $ ____________________
Description of this change __________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
A. Material and supplies cost: $ ________________
B. Taxes and fees $ ________________
C. Direct labor: $ ________________
D. Indirect labor costs: $ ________________
E. Equipment and tools: $ ________________
F. Subtotal: ........................................................................ $ ________________
G. Overhead at _____ % of line F: $ ________________
H. Subcontracts: $ ________________
I. Overhead at _____ % of line H: $ ________________
J. Subtotal: ............................................................................ $ ________________
K. Profit at _____ % of lines F and J: $ ________________
L. Subtotal: ............................................................................ $ ________________
M. Total cost, lines F, J and L: [ ] Add [ ] Deduct $ ________________
N. Items specifically excluded from this change: __________________________________________
_______________________________________________________________________________
Q. This proposal is valid for _____ days.
R. We require _____ days extension of the contract time.
[ ] We are proceeding with this work per your authorization.
[ ] Please return a signed copy of this agreement as your acknowledgment of this change.
This Change Order incorporates by reference the terms and conditions of the original contract and all
change orders approved prior to the acceptance of this agreement.
This Change Order is accepted by_____________________________ Date________________

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