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. Alternative Pricing Options
A. At the option of Owner, the following adjustments may be made to the Project:
1. Add $_________________ for
____________________________________________________________________________________
____________________________________________________________________________________
_____________________________________________________________.
2. Add $___________________ for
____________________________________________________________________________________
____________________________________________________________________________________
__________________.
V. Allowances
A. This Contract Price includes an allowance for an item to be selected later by Owner.
1. $___________________ for ___________________________________________________.
Installation will be by others at a cost included in the allowance price.
The allowance price covers the cost of:
Materials
Taxes
Delivery
Handling on the Job Site
Insurance
Markup
VI. Scheduled Start of Construction
A. Work under this agreement will begin on ___/___/_____.
VII. Scheduled Completion of Construction
A. Work under this agreement will be Substantially Complete within _____ Calendar Days after the
date construction begins.
VIII. 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.

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1. Plans
Plans dated ___/___/_____
Consisting of _____ sheet(s)
Prepared by ___________________________________________
Last changed on ___/___/_____
And further identified as ______________________________________
2. Specifications
Specifications dated ___/___/_____
Consisting of _____ sheet(s)
Prepared by _________________________________________
Last changed on ___/___/_____
And further identified as ___________________________________
3. Detailed Drawings
Detailed Drawings dated ___/___/_____
Consisting of _____ sheet(s)
Prepared by ___________________________________________________
Entitled ___________________________________________________
And further identified as ___________________________________________
4. Samples
Samples defined as
____________________________________________________________________________________
___________________________________
And further identified as
____________________________________________________________________
5. Schedule
Schedule dated ___/___/_____
Consisting of _____ sheet(s)
And further defined as ___________________________________________________________
IX. Ownership of Plans
A. All Plans, Drawings and Specifications created for Work under this contract are instruments of
service and remain the property of Owner. The use of these instruments of service on Work other than
provided in this contract without permission of Owner is prohibited. All copies of Drawings and
Specifications other than a single record copy shall be returned to Owner upon request after completion
of the Work.
X. Plans on Site
A. Contractor will maintain at the construction site a copy of all Plans, Addenda, Change Orders,
supplemental Drawings, written directives, approved Submittals, Inspection reports and an updated
Contract Schedule. At all reasonable times, these documents will be made available for review by
authorized personnel.
XI. Documents Supplied to Contractor
A. Owner will furnish to Contractor at no cost:
1. One full set of Plans and Specifications for all trades, on paper.
If Contractor needs additional Plan sets, Owner will furnish those Plan sets to Contractor at the actual

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cost of reproduction plus delivery.
2. Contractor will distribute Contract Documents as required by Subcontractors.
XII. Scope of Work
A. The intent of this contract is to provide for the construction, complete in every detail, of the
Work described in or reasonably inferred from the Contract Documents, at the Contract Price and within
the time established in the Contract Schedule. Contractor has the duty to determine the means, methods,
techniques, sequences and procedures required to complete the Project as described and inferred.
B. Except for materials expressly designated otherwise in the Contract Documents, Contractor
warrants that all materials and equipment furnished under this contract shall be of good quality and new.
C. Contractor is responsible for coordination of the various trades and deliveries of equipment,
materials and supplies to minimize interference which could delay the Work or pose a hazard to life or
property. Contractor shall be responsible for allocation of tasks between trades and will be the final
authority on location and routing of equipment and storage of materials on the Job Site.
D. Contractor will ensure that Subcontractors, their agents, and employees adhere to these Contract
Documents. Contractor accepts responsibility for all Work performed under this contract, including
Work performed by employees of Subcontractors. Contractor will settle disputes among Subcontractors
and between Contractor and Subcontractors so that disagreements do not delay completion of the Work
or affect quality of the Work.
XIII. Cutting and Patching
A. Contractor will ensure that cutting and patching required to make building parts fit together
properly is done by those skilled in the trade. Work completed by Contractor will have the neatly
finished appearance characteristic of professional grade construction.
B. Contractor will ensure that alteration Work done on existing building components does no
damage either to the property of Owner or to Work done by others.
C. Except as illustrated on building Plans or described in Contract Documents, Contractor will not
alter existing building components without consent of Owner. Contractor will not alter or interfere with
the Work of any Separate Contractor without prior consent of the Separate Contractor involved.
XIV. Compliance with Law
A. Contractor and Subcontractors working for Contractor shall comply with state, federal and local
Law when discharging their responsibilities under this agreement. All Work done under this agreement
will meet Requirements of state and federal Law, ordinances, regulations and codes adopted pursuant to
Law.
B. If Contractor observes that Drawings, Specifications, or other Contract Documents do not
comply with applicable Law, Contractor shall promptly notify Owner of the variance. Any changes
made to the Contract Documents as a result of this notice shall be handled in the form of a Change Order
under this agreement.
C. Contractor shall bear all cost of correcting Work that does not comply with Law if Contractor
knows or reasonably should have known that Plans or Contract Documents are Defective, and
Contractor fails to give notice of that Defect to Owner.
D. Contractor is licensed to do Work described in the Contract Documents. Contractor will notify
Owner of any change in that license status. Every Subcontractor working for Contractor will hold a

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license appropriate for the Work performed.
XV. Permits and Fees
A. Owner shall secure all permits and licenses required by government authority to complete the
Project. Contractor shall assist Owner in responding to requests for information from the permit-issuing
authority. Owner shall provide Contractor with a copy of all permits, licenses and renewals issued by
government authority for the Project.
B. Owner will pay the building permit fee, Plan check fee, and charges levied by government for
testing, Inspection and Re-Inspection of the Project.
XVI. 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.
B. Contractor shall remit when due all federal, state and local withholding tax and payroll tax on
employee wages, premiums for unemployment and workers' compensation insurance, and retirement
contributions.
XVII. Temporary Utilities
A. Owner shall permit Contractor to use utility services, including water, electric power, heating and
cooling, without charge, as required to complete the Work. Contractor shall provide all required
connections to these services in a safe manner and in accord with applicable codes. Contractor shall
ensure that utility services furnished by Owner are not wasted. Before Final Completion, Contractor will
remove all temporary connections and return the existing water, electric, heating and cooling systems to
a condition at least as serviceable as prior to the Date of Commencement. Use by Contractor of water
and electricity provided by Owner constitutes a release by Contractor of all Claims and of all liability to
Owner for damages which may result from power and water outages or voltage variations.
B. Unless agreed to in advance by Owner, construction personnel shall use temporary toilet
facilities provided by Contractor, and none other.
XVIII. Job Cleanup
A. Contractor shall regularly remove from the Job Site and storage areas all surplus material, waste
and debris resulting from the Work. Construction debris shall be removed to a legal refuse collection site
with disposal or recycling fees paid by Contractor. At completion of the Work, Contractor shall, in
addition, remove from the Job Site all tools, equipment and scaffolding brought to the Job Site by
Contractor or Subcontractors. At Substantial Completion, exposed finishes of windows, doors, floors,
walls, ceilings, fixtures and trim shall be cleaned and free of grime, stains, over spray, dirt and dust.
B. Contractor shall provide a trash disposal facility on the Job Site for use by construction
personnel. The on-site trash facility provided by Contractor shall be of an appropriate size for the Project
and placed in a location approved by Owner. All construction debris shall either be placed in the trash
facility provided by Contractor or hauled to a legal disposal site, at the discretion of Contractor. When
any trash container provided by Contractor is full, contents shall be removed to a legal disposal facility
at the expense of Contractor.
C. If Contractor fails to comply with Requirements in the Contract Documents for progressive or
final Job Site cleanup, Owner may deliver a written notice to Contractor directing that the Job Site and

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adjacent area be cleaned of construction debris within no more than 4 days. If, in the sole opinion of
Owner, Contractor has not complied with this written directive, no matter the source of debris or
Subcontractor responsible, Owner may retain a Separate Contractor to clean the Job Site to the condition
required under Contract Documents. If construction is nearly complete, the Separate Contractor may do
all cleaning and removal required before Substantial Completion. Owner may deduct from payments due
Contractor the actual amount paid to this Separate Contractor.
XIX. Project Sign
A. Owner grants to Contractor the right to display a small sign (2' x 3' maximum) listing the
company name, address, logotype, phone number, and website address of Contractor.
XX. Owner's Responsibilities
A. Owner will respond in writing and with reasonable promptness to written requests from
Contractor for information relevant to completion of the Work. Owner will identify a Representative
qualified to respond to questions from Contractor when Owner is not available. Contractor is authorized
to rely on written responses from Owner and the identified Representative.
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.
XXI. Construction by Others
A. Owner reserves the right to use one or more Separate Contractors on the Job Site or on adjacent
sites while Work is being done under this agreement. This right shall extend to portions of the Work
which have been deleted from the Contract Documents by Change Order.
B. Owner reserves the right to employ construction crews of Owner on the Job Site or on adjacent
sites while Work is being done under this agreement. This right shall extend to portions of the Work
which have been deleted from the Contract Documents by Change Order. Except as provided elsewhere
in the Contract Documents, Owner shall be responsible for coordinating the activities of Contractor with
any construction crews of Owner. When requested by Owner, Contractor shall coordinate Schedules
with the crews of Owner to reduce or eliminate potential conflicts. Except as otherwise provided in the
Contract Documents, crews of Owner shall have the same rights and obligations to Contractor as would
a Separate Contractor.
C. Contractor shall allow access to the Job Site, storage of materials and equipment, and
performance of Work on the Job Site by Separate Contractors or crews of Owner. Contractor shall not
commit or permit any act which would interfere with the performance of Work by any Separate
Contractor or employee of Owner.
D. By connecting with, covering, relying on, or using an element or portion of Work installed or
performed by crews of Owner or a Separate Contractor, Contractor accepts the condition of such
construction or operations as being suitable, except for conditions not reasonably discoverable by
Contractor. If Contractor discovers any condition in the Work of others that is Defective or not suitable
for proper performance of the Work, Contractor shall stop Work on that portion of the Project and notify
Owner.
E. Owner shall give Contractor written notice at least 2 Work Days before any Separate Contractor
or crew of Owner begins Work on the Job Site.

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 XXII. Representations by Contractor
A. The Contract Price is based on Contractor's careful evaluation of Plans, Specifications, Contract
Documents, local conditions, including availability of labor, material, equipment, and transportation, the
kind and character of soil and terrain, all available reports and tests on soil conditions, Work to be
performed by Owner or Separate Contractors, environmental and historic preservation considerations,
applicable Code Requirements, climatic conditions, and other local conditions that may affect cost to
Contractor or duration of construction.
B. Contractor shall use skill and attention to complete the Work in a timely manner consistent with
the Contract Documents.
C. Contractor has reported to Owner all errors, inconsistencies, ambiguities, and omissions found in
the Plans and Specifications and has concluded that the Contract Documents define the Work required
with enough detail to allow Contractor to complete the Project.
D. Based on a thorough evaluation of the Contract Documents, the Job Site, and all conditions that
may affect construction cost and duration, Contractor affirms that the Contract Price and Contract Time
are fair and reasonable for completion of the Project.
E. Contractor affirms that the company is financially solvent, licensed, experienced, competent, and
has resources necessary to complete the Work in compliance with the Contract Documents.
F. Contractor affirms that all Subcontractors will be financially solvent, licensed, experienced,
competent, and will have resources necessary to complete the Work assigned in compliance with the
Contract Documents.
XXIII. Discrepancy Between Plans and Field Conditions
A. Contractor shall compare conditions at the Job Site with representations and Requirements in the
Contract Documents. If Contractor discovers a discrepancy between Job Site conditions and
representations or Requirements in the Contract Documents, Contractor shall promptly report the
discrepancy to Owner, and provide a detailed explanation.
XXIV. Differing Site Conditions
A. Contractor shall promptly, and before the conditions are disturbed, give a written notice to
Owner of subsurface or latent physical conditions at or near the Job Site which differ materially from
those indicated in the Contract Documents. Owner shall investigate the site conditions promptly after
receiving notice. If the conditions do materially so differ and cause an increase or decrease in the cost to
Contractor or the time required for performing any part of the Work, whether or not changed as a result
of the conditions, an equitable adjustment shall be made under this clause and the contract modified in
writing accordingly.
B. Contractor shall make no Claim for equitable adjustment due to differing site condition if the site
condition was known to Contractor at the time this contract was signed or would have been known to
Contractor had Contractor made a reasonable investigation of conditions on and near the Job Site,
including all available reports and tests, environmental considerations, Code Requirements, climatic
conditions, and other local conditions that could affect cost to Contractor or duration of construction.
C. No request by Contractor for an equitable adjustment to the contract under this clause shall be
allowed unless Contractor has given the written notice as required. In no case will a request by
Contractor for an equitable adjustment to the contract for differing site conditions be allowed if made
after final payment under this contract.

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 XXV. 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.
XXVI. Initial Payment
A. On initial delivery of materials to the Job Site, Owner shall pay to Contractor $______________.
XXVII. 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 7 Calendar Days before each progress payment is due under the terms of this
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 7
calendar days after approval of any application for initial, progress or final payment.
3. Title to all Work done during the payment period shall pass to Owner upon payment in full of the
invoice. At the request of Owner, Contractor shall prepare and execute all documents necessary to effect
and perfect such transfer of title.
4. Applications for payment shall include amounts due for changes only if approved as Change
Orders or required as changes by Owner and shall exclude any amounts which are in dispute with
Subcontractors or Material Suppliers.
5. With each application for payment, Contractor shall certify that: (1) Contractor has applied the
proceeds of prior payments, if any, to discharge all prior mechanics' and materialmen's liens outstanding
as of the date of application, (2) There are no new mechanics' or materialmen's liens outstanding as of
the date of application, (3) All due and payable bills with respect to Work completed in the payment
period have been paid or are included in the amount requested in the current application, (4) Except for
such bills not paid, there is no known basis for the filing of any mechanics' or materialmen's liens on the
Work, and (5) Waivers from all Subcontractors and materialmen have been obtained to constitute an
effective waiver of lien under the Laws of Alabama.
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6. Payments to Contractor do not constitute a waiver of any Claim that Owner may have for
Defective or inadequate workmanship or materials installed on the Project.
7. Owner may withhold payment while Contractor is in material breach of this contract.
8. The check issued by Owner to Contractor may include one or more Subcontractors or Material
Suppliers as joint payees.
XXVIII. 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.
XXIX. 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. No interest shall accrue on funds properly retained under the terms of this contract.
XXX. 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.
XXXI. 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
reasonably required by Owner, title insurer, or lenders. Conditional waivers of lien become
unconditional on receipt of the payment which is requested.
B. Contractor agrees to include in each Subcontract agreement for the Project a provision requiring
(1) A conditional waiver of lien from each Subcontractor to the Project confirming payment for all Work
and materials covered by each application for payment, and (2) Certification from each 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.
C. Upon receipt of payment, Contractor shall furnish to Owner a full and unconditional release of
lien for that portion of the Work covered by a prior conditional release of lien.
XXXII. Settlement of Lien Claims
A. Owner may withhold from money due Contractor a sum sufficient to cover lien Claims filed
under state Law by any Subcontractor, tradesman or Material Supplier working under direction of
Contractor. Any amount paid by Owner to satisfy such lien Claim shall be credited against the amount
due Contractor.
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B. Providing Owner is not in default on any payment due Contractor, Contractor agrees to
reimburse Owner for the cost to Owner (including Bond cost and reasonable attorney's fees) of settling
or discharging any lien Claim filed on the Project by a Subcontractor, Material Supplier or tradesman of
Contractor.
XXXIII. Details on Lien Claims
A. By making application for payment, Contractor certifies that Contractor is unaware of any lien or
property rights claimed on the Project made or threatened under state Law by Subcontractors, Material
Suppliers or tradesmen except as specified in the application for payment. Owner is entitled to withhold
payment to Contractor until such time as Contractor makes full disclosure of all details concerning lien
or property right Claims made or threatened on the Project by Subcontractors, Suppliers or tradesmen.
B. 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.
XXXIV. Grounds for Withholding Payment
A. Owner may withhold payment due Contractor for Defective Work which has not been corrected
in compliance with terms of this agreement.
B. Owner may withhold payment due Contractor for failure by Contractor to meet financial
obligations to Subcontractors, tradesmen or Material Suppliers on the Project. Failure to meet financial
obligations shall not constitute cause to withhold payment if Contractor has provided a Payment Bond
from a licensed Surety, guaranteeing payment of Subcontractors, Material Suppliers, and tradesmen.
C. Owner may withhold payment due Contractor when reasonable evidence exists that the Project
cannot be completed for the unpaid balance of the contract amount. Inability to complete the Project for
the unpaid balance shall not constitute grounds to withhold payment if Contractor has provided a
completion Bond from a licensed Surety guaranteeing completion of the Project.
D. Owner may withhold from payments due Contractor a sum adequate to reimburse Owner for any
damage suffered by Owner or for which Owner may be liable and which was caused by an act or neglect
of Contractor or by anyone for whom Contractor may be liable. Damage to Owner shall not constitute
grounds to withhold payment if Contractor has insurance coverage which would prevent loss to Owner
from the damage claimed.
E. Owner may withhold payment due Contractor when it is reasonable to believe that liquidated
damages due Owner upon completion will exceed the balance due Contractor upon completion.
F. Owner may withhold payment due Contractor for unauthorized deviations from the Contract
Documents or persistent failure to observe Requirements of the Contract Documents.
G. Owner may withhold payment due Contractor for neglect of Contractor to obtain a required
permit or license or to comply with applicable Law, ordinance, code, or regulation, providing such
neglect of Contractor has a material impact on satisfactory completion of the Project in compliance with
the Contract Documents.
H. Owner may withhold payment due Contractor for failure to keep Work progressing in an orderly
manner consistent with a reasonable time schedule.
I. If Owner withholds any payment under terms of this agreement, Owner will notify Contractor in
writing of the amount being withheld, the reason why payment is withheld, and what must be done to
release the payment otherwise due.

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J. Owner may withhold from the current payment an amount which could have been withheld from
an earlier payment had a latent Defect or failure by Contractor been discovered before the earlier
payment was made.
K. Withholding of payment by Owner under the terms of this agreement does not constitute either
breach of contract or default by Owner.
XXXV. 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:
(1) Outstanding lien Claims or Claims for liens, (2) Claims for Defective Work specifically identified
before the making of final payment, (3) Defects which result from failure by Contractor to perform the
Work in strict accordance with the Contract Documents, (4) Any warranty or guarantee required by the
Contract Documents, (5) Any Claim for which Contractor was specifically given notice before final
payment, and (6) Any right Owner has as a matter of Law.
C. The acceptance of final payment by Contractor constitutes a complete and unconditional waiver
and release of any and all Claims by Contractor of whatever nature, and regardless of whether they are
then known or unknown, and a complete and unconditional release of Owner, and every person for
whom Owner is responsible, for any and all matters related to the contract or otherwise, except those
Claims which have been made in writing and identified by Contractor as not having been settled at that
time.
D. Owner has no obligation to make final payment until unconditional waivers of lien in a form
satisfactory to Owner, lenders and Sureties have been received from Contractor, Subcontractors,
vendors, tradesmen, and all Material Suppliers with lien rights on the Project. Contractor may furnish a
Bond satisfactory to Owner in lieu of waivers of lien.
E. Owner has no obligation to make final payment until all Punch List items have been
satisfactorily completed unless Owner agrees to accept a certified check equal to the value of any
uncompleted Work.
F. Application for final payment constitutes affirmation by Contractor that all payrolls, bills for
materials, equipment charges, and other obligations of Contractor in connection with the Work have
been paid or otherwise satisfied.
G. Owner will notify Contractor of the date when notice of Final Completion is recorded.
H. Any other provision of this agreement notwithstanding, Owner may deduct from the final
payment funds sufficient to cover liquidated damages, mechanics' lien Claims, back charges from Owner
and other Claims made against Contractor on the Project unless Contractor posts a Bond from a licensed
Surety sufficient to guarantee satisfaction of any such Claims.
XXXVI. Changes in the Work
A. Without invalidating the terms of this agreement, Owner may direct Contractor to make changes
to the Work which are within the general scope of the contract, including changes in the Plans and
Specifications and changes which add, delete or revise portions of the Work. Changes ordered by Owner
shall be in writing and shall result in a revision of the Contract Price and the Contract Time as provided
by this agreement.
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B. On receipt of any instruction or information which Contractor interprets as requiring Extra Work,
Contractor shall prepare and submit to Owner a proposal describing the change in the Work using
(where appropriate) Drawings, Specifications, narrative, the cost to Owner for making the change, and
the proposed revision in the Contract Completion Date, if any.
C. When a change in the Work has been proposed by Owner, Contractor shall halt Work in the area
of the proposed change and take steps to minimize any loss or waste which might result from
implementing the proposed change.
D. Acceptance by Contractor of payment for a Change Order shall constitute a waiver by Contractor
of all other Claims by Contractor based on Work described in the Change Order.
E. If Owner directs a change in the Work, the change shall be incorporated into this contract by a
Change Order. Contractor shall proceed with Work identified in the Change Order even without
agreement on the change in the Contract Price or the Contract Time, if any.
F. Failure of Contractor and Owner to agree on the terms of a Change Order shall be resolved under
the provisions of this agreement which cover Claims and disputes.
G. Should Contractor and Owner fail to agree promptly on the cost of a Change Order, Contractor
shall maintain separate accounts, by job order or other suitable accounting procedure, of all incurred
segregable, direct costs (less allocable credits) of Work allocable to the change. Contractor shall
maintain such accounts until Contractor and Owner agree on the cost of change or until the issue is
resolved under provisions of this contract relating to disputes.
XXXVII. Defective Work
A. General Requirements
1. On written notice from Owner, Contractor shall promptly remove from the Job Site all Work or
materials found to be either unsatisfactory or 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.
B. Rejected Work - Contractor's Obligations
1. Contractor shall bear all expenses related to the correction of rejected Work and replacing
rejected materials, including the expense of making good all Work of Contractor, Owner and Separate
Contractors destroyed or damaged by the corrections and replacements.
2. The value of rejected Work and rejected materials shall not be included in any application for
payment by Contractor or, if previously included, shall be deducted from the next application for
payment submitted by Contractor.
C. Rejected Work - Contractor's Rights
1. If Contractor disagrees with a decision on rejection of Work or rejection of materials, Contractor
may proceed with corrections under protest and invoke the provisions of this agreement which cover
dispute resolution. If such rejection of Work or materials is found to be without merit or with no
adequate foundation, Contractor shall be entitled to a Change Order for Extra Work and Owner shall pay
all costs associated with corrections completed under protest.
XXXVIII. 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

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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.
XXXIX. 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
Final Completion.
B. Basic Warranty Coverage
1. Warranty on Carpentry, Rough Framing
a) It is a breach of warranty if framed walls bow out of alignment in excess of 1/2 inch in any 32
inches horizontal inches or in excess of 1/2 inch in any 8 vertical feet during the first year. Bowing that
is a result of shrinkage of materials during drying after construction is not covered under this warranty.
Small variations in the finished surface can be exaggerated by lighting conditions and are not covered
under this warranty. Defects that result from abuse, impact, or unanticipated loads are not covered under
this warranty.
b) It is a breach of warranty if any rafter, ridge board, ceiling joist, or truss bows in excess of 1 inch
in 8 feet during the first year, due to a Defect in workmanship or failure of Contractor to (1) comply with
the applicable building code, or (2) comply with the building Plans and Specifications, or (3) use the
wood grade and species required by the Plans, Specifications and building code. Maintaining reasonable
roof loads is a part of normal building maintenance. A roof can be damaged by a large accumulation of
ice or snow. Defects that result from abuse, unanticipated loads, subsidence, earthquake, fire, flood, high
winds, modification, or improper maintenance are not covered under this warranty.
c) It is a breach of warranty if, during the first year, any ceiling or floor joist or truss is found to be
sized, installed or fastened out of compliance with the building code or not in compliance with the
building Plans. Generally, deflection of floor joists should not exceed 1/360 of the joist span (1/3 inch in
10 feet) under the design load.
2. Warranty on Carpentry, Sheathing
a) Any subflooring more than 1/8 inch above or below the surface of adjacent subflooring due to
delaminating or swelling of the subfloor is in breach of warranty during the first year if the Defect is
plainly visible through the finish floor covering when viewed in ordinary light from a distance of 10
feet. Defects in subflooring that result from abuse, modification, improper maintenance, or prolonged
exposure to moisture are not covered under this warranty. Repaired areas might not match adjacent
nonrepaired areas.
3. Warranty on Cast-In-Place Concrete
a) Poured concrete will always have minor irregularities. Exterior portions of foundation walls
exposed to view above grade are in breach of warranty during the first year if they develop
honeycombing, spalling, or holes in excess of 2 inches in diameter or 1 inch in depth. Repaired areas
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might not match the surrounding concrete color or texture.
b) It is a breach of warranty if a concrete footing, foundation, or wall develops a crack in excess of
1/4 inch wide by 4 inches deep by 12 inches long during the first year. Smaller cracks are not covered
under this warranty. Cracks and displacement in concrete caused by excessive loads, abuse, improper
maintenance, or invasion of tree roots are not covered under this warranty.
4. Warranty on Electrical Systems
a) Electrical wiring that frequently trips circuit breakers should be inspected for appliances that are
overloading the system. It is a breach of warranty if any portion of the electrical system installed by
Contractor is found during the first year to be out of compliance with the electrical code enforced at the
time of Installation, or out of compliance with the Plans and Specifications. This warranty does not
cover any modification of the electrical system by Owner and does not cover damage that results from
improper maintenance or connection of unusual or excessive loads.
b) It is a breach of warranty if any electric receptacle or switch fails to operate normally during the
first year. Inspect the electrical service panel for a tripped breaker if a receptacle or switch does not
work. Any Defect that results from abuse, modification, or improper maintenance of the electrical
system is not covered under this warranty.
5. Warranty on Plumbing Systems
a) It is a breach of warranty if, during the first year, 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.
b) 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.
c) It is a breach of warranty if a Defect in workmanship by Contractor results in a failure of the
water supply system during the first year. Abuse, modification, improper maintenance, or a disruption in
the water supply system due to circumstances beyond the control of Contractor are not covered under
this warranty.
6. Warranty on Walls
a) It is a breach of warranty if, during the first year, gypsum drywall is found to be installed out of
compliance with the building code, or if gypsum drywall develops blemishes, or Defects plainly visible
from 10 feet away. Blemishes can include: (1) Nail or screw pops, (2) Blisters in taped joints, (3)
Flaking joint compound, (4) Cracks or fissures, (5) Delamination, or (6) Joints that protrude or buckle.
Generally, it is best to wait several months until the moisture content of construction materials has
stabilized before making repairs to gypsum drywall. Normal drywall repair is to remove and reinstall
materials in the area affected, tape, texture, then repaint. The area repaired might not match exactly the
color and texture of adjacent nonrepaired areas. Defects resulting from abuse, impact, modification,
improper maintenance, or prolonged contact with moisture are not covered under this warranty.
b) A wall finished with gypsum wallboard will include joints and areas with varying receptivity to
paint. The result can leave joints visible through the finish coating. Proper joint finishing and application

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of adequate coatings will result in a smooth, uniform appearance. It is a breach of warranty if, during the
first year, gypsum wallboard is not properly finished to have a generally uniform appearance when
viewed from eye level at a distance of 10 feet. Defects due to abuse, impact, modification, improper
maintenance, or prolonged exposure to moisture are not covered under this warranty. Unfinished
gypsum wallboard is not designed to hide joints and is not covered under this warranty.
XL. Contractor Claims
A. 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.
XLI. Notice of Claims
A. No Claim by Contractor shall be considered unless Contractor provides Owner with a notice that
there will be a Claim for additional compensation or an extension of time. This notice of Claim shall be
made no less than 5 Calendar Days after Contractor recognizes or should have recognized that
circumstances exist which support such a Claim. The notice of Claim shall include: (1) The date of the
notice, (2) The date the basis for the Claim was discovered, (3) The circumstances that support the
Claim, and (4) The estimated additional cost to Owner or additional time required to complete the
Project.
B. All Claims of any nature are barred if asserted after final payment has been made under this
contract.
C. Contractor agrees and understands that no oral approval, either express or implied, of any Claim
shall be binding upon Owner unless and until such approval is ratified by execution of a written Change
Order.
XLII. Dispute Resolution
A. Except as provided elsewhere in this agreement, all Claims and disputes between Contractor and
Owner arising out of or relating to the Contract Documents or contract warranty or the breach thereof,
except for Claims which have been waived by the making or acceptance of final payment, shall be
decided by courts of competent jurisdiction in the county where the Project is located.
B. Should either Party bring suit in court to enforce the terms of this agreement, any judgment
awarded shall include court costs and reasonable attorney's fees to the successful Party plus interest at
the legal rate.
XLIII. Insurance
A. Certificates of Insurance
1. Contractor shall provide to Owner a certificate of insurance for each insurance policy required by
this agreement. These certificates shall list Owner as the certificate holder.
2. Each certificate of insurance required by this contract shall provide: (1) The name of the
insurance company, (2) The name, address, phone number and signature of the authorized agent of the
insurance company, (3) A description of the policy in force and limits of liability, (4) The policy number
and effective dates, (5) The name and address of the insured, and (6) Acknowledgment that Owner will
receive notice 30 Calendar Days before any cancellation, expiration or significant change in coverage.

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 B. Insurance Details
1. Insurance provided by Contractor or Subcontractors pursuant to this contract shall apply on a
primary basis. Any other insurance or self-insurance maintained by Owner shall be in excess of and not
contributing with the insurance provided by or on behalf of Contractor or Subcontractors. Coverage
maintained by Contractor or Subcontractors shall apply on a first dollar basis without application of a
deductible or self-insured retention unless otherwise specifically agreed to by Owner. Such agreement
shall not relieve Contractor from payment of any deductible or self-insured retention.
2. If Owner is damaged by the failure or neglect of Contractor to maintain insurance as required by
this contract, Contractor shall be liable for all costs and damages properly attributable thereto.
3. Contractor shall report promptly to Owner each loss which may result in an insurance Claim.
Owner is authorized to negotiate and settle with insurers all losses on the Project unless Contractor
objects in writing within 30 Calendar Days after the occurrence of the loss.
4. Listing of Owner as an additional insured under any policy required by this contract shall not
relieve Contractor from the obligation to pay insurance premiums.
5. Except as specifically provided elsewhere in this contract, liability insurance may be written as
either on occurrence or Claims-made coverage. If the policy is on a Claims-made basis, an extended
reporting endorsement (tail) for a period of not less than 3 years after the end of the contract term must
also be provided.
C. Liability Insurance
1. Contractor shall maintain comprehensive general liability and property damage insurance
protecting Contractor from all Claims for bodily injury, including death, and all Claims for destruction
of or damage to property, arising out of or in connection with, any operations under this contract,
whether such operations be by Contractor or a Subcontractor to Contractor, or by anyone directly or
indirectly employed by Contractor or a Subcontractor. Owner and consultants to Owner shall be named
as additional insureds under this policy, but only in proportion to and to the extent Claims, costs,
injuries, or damages are caused by or result from the negligent acts or omissions of Contractor or a
Subcontractor performing obligations under this agreement. General liability insurance shall be written
on a comprehensive policy form (excluding professional liability) with coverage for: (1) Work
performed by Contractor (premises/operations), (2) Work performed by Subcontractors (Contractor's
protective liability), (3) Liability assumed under Indemnity agreements (contractual liability), (4) The
finished building (completed operations/products liability), (5) Broad form property damage, and (6)
Personal injury liability.
2. Minimum Contractor's liability coverage shall be: $1,000,000 combined bodily injury and
property damage single occurrence limit, annual aggregate limit of $2,000,000, products and completed
operations aggregate limit of $1,000,000, personal and advertising injury aggregate limit of $1,000,000.
XLIV. Liability for Damages
A. Owner's Liability for Damages
1. Contractor shall replace or repair all damage done by Contractor to existing improvements on the
Job Site during the Contract Time. Existing improvements may include walks, curbs, driveways, septic
systems, sewer lines, water lines, gas lines, shrubs, lawn, trees, communication lines, electric lines,
existing buildings, equipment, embankments, drainage structures, and stored materials not included in
the Project. If Contractor fails or refuses to make such repair or replacement, Owner may deduct from
any payment due Contractor the amount required to make the repair or replacement. Anything in this

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contract notwithstanding, Contractor shall have no liability for damage to existing improvements on the
Job Site if damage is the direct result of an error in the Contract Documents.
2. Contractor shall bear the risk of loss, damage, disappearance, theft, or misappropriation of
materials, equipment and tools delivered to and intended for use by Contractor on the Job Site unless
such loss, damage, disappearance, theft or misappropriation is covered by insurance.
3. Contractor shall be liable to Owner for any uninsured loss or damage to the Work or to existing
site improvements or to adjacent property which results from an act or omission of any Subcontractor or
Material Supplier to Contractor, or from an act or omission of any employee or agent of a Subcontractor
or Supplier to Contractor.
XLV. Dealing With Plan Defects
A. At any time, Contractor may request an interpretation or clarification of the Contract Documents
from Owner. Owner shall reply with a written interpretation, clarification, or detailed instructions within
a reasonable time.
B. Unless an item shown or described in the Contract Documents is specifically identified as not a
part of the contract or is identified as being furnished or installed by anyone other than Contractor, the
obligation of Contractor shall be to furnish, assemble, install, finish and connect each item identified in
the Contract Documents. Work not described in the Contract Documents is not part of the Project unless
it is: (1) Consistent with the purpose of the Contract Documents, (2) Reasonably inferable from the
Contract Documents, and (3) Necessary to produce a functionally complete structure ready for the
anticipated use in all respects.
C. Unless Contractor has asked for and received a written clarification from Owner in time to
prevent delay in the Work, any omission or ambiguity in the Contract Documents shall be interpreted as
requiring the material or construction technique necessary to produce the greater quantity and better
quality of Work.
D. Anything described in one of the Contract Documents shall be considered required by all
Contract Documents.
E. If inconsistent, approved changes to the Contract Documents take precedence over the original
Contract Documents. Subsequent changes to the Contract Documents take precedence over prior
changes to the Contract Documents.
F. If inconsistent, the Specifications take precedence over the construction Drawings.
G. If anything in the construction Specifications is inconsistent with anything else in the
construction Specifications: (1) A product performance Requirement takes precedence over a named
product or manufacturer, and (2) Other clauses in the Specifications take precedence over anything
incorporated by reference into the Specifications.
H. Except as specifically provided elsewhere in this agreement, inconsistencies shall be resolved by
giving precedence to the more restrictive, higher quality, more demanding provision in codes, safety
orders, Contract Documents, referenced manufacturers' specifications, and industry standards.
XLVI. The Construction Schedule
A. Contractor shall prepare and submit to Owner for review and approval an estimated progress
Schedule for the Work showing completion within the Contract Time. This progress Schedule shall
identify expected starting and completion dates for each part of the job and identify tasks critical to
timely completion of the Work.

Page 17
B. Contractor may select any type of Schedule which: (1) Is suitable for monitoring progress of the
Work, (2) Provides easy access to information about the timing of decisions Owner must make and acts
Owner must perform, (3) Includes sufficient detail to demonstrate adequate planning for the Work, and
(4) Presents a practical plan to complete the Work in an acceptable time period.
C. Contractor shall plan, develop, supervise, control, and coordinate the performance of the Work so
that job progress, sequence and timing conform to the construction Schedule. If Contractor falls
materially behind the currently approved construction Schedule, Owner may require Contractor to
prepare and submit for approval, at no cost to Owner, a plan for completing the Project within the
Contract Time. Failure to submit a plan meeting this Requirement shall constitute grounds for
termination under the terms of this agreement.
D. The Schedule shall allow for and depict the following: (1) Beginning and Completion Dates of
each significant task (Work breakdown structure) in the job, (2) Delivery and approval of each
Submittal, Sample and Shop Drawing, (3) Inspections and tests, (4) The Work of Subcontactors and
Separate Contractors, and (5) Order dates and delivery dates of significant equipment and key materials.
The construction Schedule shall include a legend which identifies the meaning of each symbol and
abbreviation.
XLVII. Contractor Claims for Delay
A. Extension of the Contract Time shall be the sole remedy for suspension, delay or interruption of
the Work unless caused by acts constituting intentional interference with performance of the Work or
fraud or bad faith by Owner or agents of Owner. No act of Owner shall constitute intentional
interference with performance of the Work unless continued after notice by Contractor that a Claim will
be asserted for delay. Exercise by Owner of any right or remedy provided under this agreement shall not
constitute intentional interference with performance of the Work. Nothing in this paragraph shall limit
the right of Contractor to terminate this agreement under the terms of this agreement.
XLVIII. Liquidated Damages
A. Time is of the essence with regard to this contract. The Schedule for completion and provisions
in this contract for extension of the Contract Time are considered reasonable by Owner and Contractor.
Any neglect, refusal or failure of Contractor to reach Substantial Completion within the Contract Time,
plus approved extensions of that time, will result in damage to Owner impossible to estimate accurately
in advance, and difficult to calculate after the occurrence. In lieu of actual damages for delay, Owner
shall deduct from money due Contractor or which may become due Contractor the sum of
$_______________ as liquidated damages for each Calendar Day that Substantial Completion is
delayed beyond the Contract Time, plus approved extensions of that time. This daily rate for liquidated
damages is reasonable, is our best estimate of actual damages, and is not a penalty.
B. Except as provided elsewhere in this contract, liquidated damages are the exclusive damage
remedy for Owner for any failure of Contractor to complete Work according to Schedule. No damages
of any other type or description shall be awarded Owner for failure of Contractor to comply with the
construction Schedule.
C. Any extension of time or remission of charges or liquidated damages shall, in no other manner,
affect the rights or obligations of the parties under this contract, nor be construed to prevent termination
of this contract by Owner.

XLIX. Consequential Damages

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A. Contractor and Owner waive all Claims for consequential damages against each other, their
respective officers, directors, partners, employees, agents, consultants and Subcontractors, arising out of
or relating to this contract or the termination of this contract, except those consequential damages
covered by insurance or specifically provided elsewhere in this agreement.
B. Contractor shall require each Subcontractor and Sub-subcontractor on the Project to execute a
waiver of consequential damages in favor of Owner with provisions coextensive with the waiver of
consequential damages that appears in this contract.
L. Suspension of Work by Owner
A. Owner may, without cause, direct Contractor in writing to suspend all or any part of the Work for
a period of up to 30 Calendar Days. Contractor shall halt construction as directed and resume Work at
expiration of the suspension period. The Contract Price and Contract Time shall be adjusted by a Change
Order for excusable and compensable delay during the period of suspension. Contractor may elect to
terminate this contract under conditions provided in this agreement if suspensions of any substantial
portion of the Work exceeds, in aggregate, 60 Calendar Days.
LI. Substantial Completion
A. When, in the opinion of Contractor, the Work is Substantially Complete, Contractor shall request
acknowledgment of Substantial Completion by Owner. If Owner knows of nothing that prevents the
Work from being Substantially Complete, Owner shall conduct an Inspection of the Work to evaluate
compliance with the Contract Documents.
B. Before Owner takes possession or occupancy of the Project, Contractor shall receive a
comprehensive Punch List of discrepancies to be corrected or Work to be finished by Contractor and a
date for completing this Work. Contractor shall complete and correct items on the Punch List by the
designated date.
C. Failure of Owner to note Defective or incomplete Work on the Punch List does not constitute
waiver of any Requirement of the Contract Documents and does not relieve Contractor of warranty or
call-back obligations.

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 Signatures
By signing this agreement, Contractor confirms Inspection of the Job Site and signifies familiarity with
all local conditions, Laws, and regulations under which the Work is to be performed.
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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 Insulation Disclosure (In Compliance with 16 CFR Section 460)
Contractor makes the following disclosures in compliance with 16 Code of Federal Regulation Section
460. The Project includes installation of the following thermal insulation:
Exterior wall insulation
Material type: ___________________
Thickness of insulation: _____________________
R-value of that thickness: _____________________
Approximate coverage area in square feet: _____________________
Coverage area includes framing members but not doors, windows or other large openings in the exterior
frame. R-values may be less where building components limit placement of insulation. For example, it
may not be possible to place insulation at building corners, at fireplaces and around the perimeter of
doors and windows. Listed R-values are based on information supplied by the insulation manufacturer.
Contractor may have to substitute other materials but will maintain the R-values described here.

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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 24
 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 25
 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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