When should I use a residential construction agreement?

Use it to hire a builder for a new home. For work on a house that already exists, use a home improvement agreement.

What if the home is in Maine?

The agreement says Maine has its own home-construction requirements and that those requirements control. It does not replace a Maine form the law requires.

Can I download this residential construction agreement template?

Yes. Use Download .docx to get a Word file with placeholders such as [Party A] and [Effective Date]. You can edit it in Word or Google Docs, or create a filled-in version in the free contract creator (https://www.formabledocs.com/contract-creator/residential-construction-agreement).

Is the sample legally binding as shown?

No. Placeholder sample text is a starting point. It becomes an agreement for your deal after you fill in the details—manually or in the free contract creator—and the parties sign.

When should I use the free contract creator instead of editing the file?

Use the free contract creator if you want guided choices for the property, the home, price, allowances, financing, and warranty, without hunting through every blank yourself.

Residential Construction Agreement

New-home terms for plans, allowances, substantial completion, and local requirements.

Create contract for free

What this contract contains

Preamble and parties. Names the agreement and each party.

Property. Names the address and the state where the new home will be built.

New home. Describes the home the builder will construct. The plans and specifications control what is included.

Price. Sets a fixed contract price by default. A change in scope changes the price only through a written change order.

Allowances and selections. No allowances are included unless you add them. Selections that are not in the plans are a change.

Payment. No deposit is due unless the parties agree later. Later payments follow a draw schedule, and the duty to pay does not depend on a loan.

Schedule. Sets the start and the expected substantial completion. Time extends for weather, a change, or a delay in a homeowner selection.

Permits and site. The builder obtains permits and schedules inspections. The homeowner gives access to the lot and keeps selections moving.

Changes. A change in the work, price, or time binds only if both parties sign a written change order first.

Substantial completion. The home is substantially complete when it can be lived in. The parties walk it and write a punch list.

Warranty. For 12 months after substantial completion, the builder repairs defects in its workmanship and the materials it supplied.

Insurance. During construction the builder carries general liability, workers' compensation, and builder's risk unless the lender requires the homeowner to carry the property policy.

Termination. Either party may end the agreement if a material breach is not cured within 15 days. The homeowner pays for work properly performed through the stop date.

Governing law. Sets the state law that governs the residential construction agreement and where disputes must be brought. Choose the jurisdiction in the creator.

General. Covers assignment limits, waiver rules, severability, entire agreement language, notices, and counterpart or electronic-signature execution language.

Signature blocks. Authorized signatory and title lines for each party, ready for wet-ink or e-signature fields.

RESIDENTIAL CONSTRUCTION AGREEMENT

This Residential Construction Agreement (the "Agreement") is entered into as of [Effective Date] (the "Effective Date"), by and between:

[Party A], a corporation ("Homeowner"), and

[Party B], a corporation ("Builder").

The Homeowner engages the Builder to construct a new home, and the Builder agrees to construct it, on the terms of this Agreement.

1. Property. The home will be built at [property address], in California.

2. New home. The Builder will construct [description of the new home]. The attached plans and specifications describe the home. The Builder will supply labor and materials except items the plans say the Homeowner supplies.

3. Price. The contract price is [contract price]. That price covers the scope in this agreement. A change in scope changes the price only through a written change order.

4. Allowances and selections. No allowances are included. Selections that are not in the plans are a change.

5. Payment. No deposit is due at signing unless the parties later agree in writing. Later payments follow the stages in a written draw schedule, or monthly progress on work in place if there is no schedule. Final payment is due at handover, less unfinished punch-list items. The Homeowner's duty to pay does not depend on obtaining a loan.

6. Schedule. Work starts [start]. Substantial completion is expected [completion]. Time is extended for events the Builder did not cause, including weather, a change, or a delay in a homeowner selection, if the Builder gives notice.

7. Permits and site. The Builder will obtain the building permits for the new home and schedule required inspections. The Homeowner will give access to the lot and keep financing and selections moving so the Builder is not idle.

8. Changes. A change in the work, price, or time is binding only if both parties sign a written change order before the changed work starts, unless waiting would create an immediate safety risk. A verbal request is not a change order.

9. Substantial completion and punch list. Substantial completion is when the home can be lived in for its intended use, even if minor items remain. The Homeowner and Builder will walk the home and write a punch list. The Builder will finish that list within a reasonable time. Handover includes keys, manuals, and as-built information the Builder has.

10. Warranty. For 12 months after substantial completion, the Builder will repair defects in its workmanship and the materials it supplied, after written notice. Manufacturer warranties pass through to the Homeowner. A warranty required by the state where the home is built still applies if it is longer or cannot be waived.

11. Insurance. The Builder will carry general liability and workers' compensation as the law requires during construction, and builder's risk or an equivalent property policy unless the Homeowner's lender requires the Homeowner to carry it.

12. Termination. Either party may terminate if the other does not cure a material breach within 15 days after written notice. The Homeowner pays for work properly performed through the stop date. The Builder leaves the site safe.

13. Governing Law. This Agreement is governed by the laws of Delaware, without regard to conflict of laws principles. Any legal suit, action, or proceeding relating to this Agreement must be instituted in the state or federal courts located in Delaware, and each Party irrevocably submits to the exclusive jurisdiction of those courts.

14. General. This Agreement is the entire agreement on its subject. It may be amended only in a writing signed by the Parties, and it may be signed in counterparts, including electronic copies. If a part is unenforceable, the rest stays in effect.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

Homeowner: [Party A]

By: ________________________________

Name: [Signatory]

Title: [Title]

Builder: [Party B]