An owner contractor agreement is a crucial document that outlines the terms and conditions of a construction project between the owner of the property and the contractor hired to complete the construction work. This agreement is essential in ensuring that both parties understand their obligations, responsibilities, and liabilities throughout the construction process.
If you are an owner or contractor looking to draft an owner contractor agreement, it is essential to have a sample to guide you. In this article, we will take a closer look at the elements that make up an owner contractor agreement and provide you with a sample to help you get started.
Key Elements of an Owner Contractor Agreement
1. Scope of Work: This section should outline in detail the scope of work to be performed by the contractor, including the specific tasks to be completed, materials to be used, and any other requirements necessary to complete the project.
2. Project Schedule: This section should outline a detailed project schedule that includes start and completion dates, project milestones, and any other deadlines that must be met.
3. Payment Terms: This section should outline the payment terms, including the total project cost, payment milestones, and how and when payments will be made.
4. Warranties and Representations: This section should outline any warranties or guarantees provided by the contractor regarding the quality of materials used, workmanship, and fitness for purpose.
5. Liability and Insurance: This section should outline the liability and insurance requirements for both parties, including the type and amount of insurance required and who is responsible for any damages or injuries that occur during the project.
6. Termination: This section should outline the circumstances under which either party may terminate the agreement, including breach of contract, non-performance, or other reasons.
Sample Owner Contractor Agreement
[Insert Date]
[Insert Owner Name]
[Insert Contractor Name]
[Insert Project Name]
This Owner Contractor Agreement (“Agreement”) is made and entered into on the date set forth above by and between [Insert Owner Name] (“Owner”) and [Insert Contractor Name] (“Contractor”).
Scope of Work
The Contractor shall perform all labor, materials, and equipment necessary to complete the project in accordance with the project plan and specifications attached as Schedule A. The Contractor shall complete the work within [Insert Timeframe].
Project Schedule
The project shall commence on [Insert Start Date] and shall be completed by [Insert Completion Date]. Project milestones shall be as set forth in Schedule B.
Payment Terms
The total project cost shall be [Insert Project Cost]. Payment shall be due as follows: [Insert Payment Milestones and Due Dates].
Warranties and Representations
The Contractor warrants and represents that all materials used will be of good quality and free from defects, and that workmanship shall conform to industry standards. The Contractor further warrants that all work performed shall be fit for the purpose intended.
Liability and Insurance
The Contractor shall maintain, at its own expense, liability insurance in an amount not less than $[Insert Amount] and shall provide proof of insurance to the Owner before commencing work. The Owner shall maintain property insurance in an amount sufficient to cover the replacement value of the property. The Contractor shall indemnify and hold the Owner harmless for any damages or injuries resulting from the Contractor`s work.
Termination
Either party may terminate this Agreement upon [Insert Termination Clause].
This Owner Contractor Agreement sets forth the entire understanding between the parties and supersedes all prior negotiations, understandings, and agreements. This Agreement shall be binding upon and inure to the benefit of the parties, their heirs, executors, administrators, successors, and assigns.
In Witness Whereof, the parties have executed this Agreement as of the date first above written.
[Insert Owner Signature] [Insert Contractor Signature]
[Insert Owner Name] [Insert Contractor Name]