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Construction of Buildings Contract Template

Construction of Buildings · NAICS 236 · Construction Contract

This Construction of Buildings Contract template is tailored for contractors and owners in NAICS 236, covering new construction, additions, and major renovations of residential and commercial buildings. It goes beyond a generic agreement by addressing industry-specific issues such as construction lien waivers, retainage, OSHA safety compliance, and milestone-based payment schedules. Use this template to establish clear expectations, reduce disputes, and protect your rights—whether you are a general contractor or a property owner hiring a builder.

When you need this document

When a property owner hires a general contractor for a new home or commercial building
When a contractor is engaged for a major addition or structural renovation
When a developer contracts with a builder for multiple similar structures (e.g., townhouses)
When a contractor needs to formalize a project with a detailed scope, payment schedule, and lien protections

What the generated draft includes

Detailed scope of work and project specifications
Payment terms with milestone schedule and retainage
Change order procedure requiring written approval
Lien waiver requirements and progress payment conditions
Insurance and safety compliance obligations (OSHA)
Warranty provisions for workmanship and materials
Dispute resolution and notice clauses

Frequently asked questions

Is this contract legally binding in all states?

Yes, a construction contract is legally binding if it includes an offer, acceptance, and consideration. However, state laws vary regarding licensing, lien waivers, and required disclosures. We recommend consulting a local attorney to ensure compliance with your state's specific requirements.

What is retainage and why is it included?

Retainage is a percentage (often 5-10%) withheld from each payment until the project is substantially complete, protecting the owner against defects or unfinished work. State laws may limit the amount and require it to be released promptly.

How do change orders work?

Any change to the scope, price, or schedule must be documented in a written change order signed by both parties. This prevents disputes and ensures you get paid for extra work. The template includes a clear procedure for this.

Self-help document generator: you get a structured draft based on the facts you provide. It is not legal, tax, or financial advice; verify jurisdiction-specific rules before sending.

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