Construction Contract Template
A residential and small commercial construction contract between an owner and a contractor. Enter the price and the payment percentages once — the deposit, each progress payment and the final balance are calculated, so the schedule always adds up to the contract price.
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Construction Contract
This Construction Contract (the “Contract”) is made on October 10, 2026 between the following parties:
Owner: Karen Whitfield
Address: 3914 S. Ridgeview Drive, Spokane, WA 99223
Contractor: Summit Line Builders LLC
Address: 1820 E. Sprague Avenue, Suite 4, Spokane, WA 99202
License or registration no.: SUMMILB812QN
Phone: (509) 555-0147 · Email: office@summitline.example.com
1. Project and Scope of Work
Contractor will perform the following work at 3914 S. Ridgeview Drive, Spokane, WA 99223 (the “Property”): remodel of the existing kitchen, including removal of the existing cabinets, countertops and flooring; new cabinets, quartz countertops and tile backsplash; luxury vinyl plank flooring; relocation of the sink and dishwasher; and new recessed lighting (the “Work”).
The Work is further described in Contractor's Estimate No. 2026-118 and the kitchen layout drawings prepared by Owner's designer (sheets K1 to K3), which are part of this Contract (the “Contract Documents”). If the Contract Documents conflict with this Contract, this Contract controls. Contractor will furnish all labor, materials, equipment and supervision needed to complete the Work in a good and workmanlike manner and in accordance with applicable building codes. Work not described in the Contract Documents is not included unless added by a written change order.
2. Contract Time
Contractor will begin the Work on or about October 24, 2026 and will achieve substantial completion by January 2, 2027. The Work is substantially complete when Owner can use it for its intended purpose, with only minor punch-list items remaining. The completion date is extended by change orders and by the delays described in Section 12.
3. Contract Price
Owner will pay Contractor the fixed price of $52,368.00 for the Work (the “Contract Price”), including all applicable sales tax and permit fees. The Contract Price may be changed only by a written change order signed by both parties.
4. Payment Schedule
Owner will pay the Contract Price as follows:
Payment | Due | Amount |
|---|---|---|
Deposit (10%) | on signing this Contract | $5,236.80 |
Progress payment 1 (25%) | upon completion of demolition and approval of the rough-in electrical and plumbing inspections | $13,092.00 |
Progress payment 2 (25%) | upon completion of drywall and delivery of the cabinets to the site | $13,092.00 |
Progress payment 3 (25%) | upon installation of the cabinets and countertops | $13,092.00 |
Final payment (balance) | upon substantial completion and a final walk-through | $7,855.20 |
Total | $52,368.00 |
Each payment is due within 5 days after Contractor's invoice for the completed milestone. Contractor will not request payment for work not yet performed or materials not yet delivered, other than the deposit. If state law limits the deposit or any payment for this type of work, the payment is reduced to the maximum the law allows and the difference is added to the next payment.
Amounts not paid when due bear interest at 12% per year, or the highest rate allowed by law if that is lower. If a payment is more than 10 days late, Contractor may stop the Work after giving Owner written notice, and the completion date is extended by the time the Work is stopped.
5. Change Orders
Any change to the Work, the Contract Price or the completion date must be set out in a written change order signed by Owner and Contractor before the changed work begins. Each change order states the change, the adjustment to the Contract Price and any adjustment to the completion date. Verbal requests and agreements are not binding on either party. In an emergency that threatens persons or property, Contractor may act without a change order and will notify Owner in writing as soon as possible.
6. Permits and Inspections
Contractor will obtain the building permits and arrange the inspections required for the Work; the permit fees are included in the Contract Price. Owner will obtain any approval required from a homeowners' association or other private body and will give the inspectors access to the Property.
7. Site Access and Concealed Conditions
Owner will give Contractor reasonable access to the Property during normal working hours and will provide water and electricity for the Work at no charge. Owner will remove personal property from the work area before the Work begins.
The Contract Price is based on the conditions visible when this Contract was signed. If Contractor finds concealed or unknown conditions that differ materially from those reasonably expected — such as rot, water damage, structural defects, buried utilities or work not built to code — Contractor will stop the affected work, notify Owner promptly in writing, and the parties will adjust the Contract Price and completion date by change order. Removal of asbestos, lead paint, mold or other hazardous materials is not included in the Work. If the home was built before 1978, Contractor will follow the EPA Lead Renovation, Repair and Painting Rule and give Owner the required lead hazard information pamphlet before the Work begins.
8. Insurance
Contractor will maintain, until the Work is complete, commercial general liability insurance with limits of at least $1,000,000 per occurrence and workers' compensation insurance as required by the law of the state where the Property is located, and will provide certificates of insurance on Owner's request. Owner will keep the Property insured under a homeowner's or property insurance policy while the Work is performed.
9. Warranty
Contractor warrants that the Work will be free from defects in workmanship and in materials supplied by Contractor for one (1) year from substantial completion. Contractor will correct any such defect at no cost to Owner after receiving written notice of it within the warranty period. Manufacturers' warranties on products and equipment are passed through to Owner. This warranty does not cover damage caused by misuse, lack of maintenance, normal wear, or work performed by others, and it does not limit any warranty that state law provides.
10. Cleanup
Contractor will keep the work area reasonably clean, remove construction debris regularly and leave the work area broom-clean at the end of each working week. On completion, Contractor will remove all debris, surplus materials, tools and equipment from the Property.
11. Subcontractors
Contractor may use subcontractors and remains responsible to Owner for their work. Any work that requires a specialty license, such as electrical or plumbing work, will be performed by properly licensed persons.
12. Delays
Contractor is not responsible for delays caused by Owner, by change orders, by concealed conditions, or by events beyond Contractor's reasonable control, including severe weather, unavailability of materials, labor disputes, fire, epidemics, and acts or delays of government authorities or utilities. Contractor will notify Owner in writing of any such delay, and the completion date will be extended by the time reasonably lost.
13. Liens and Required Notices
Under the law of most states, a contractor, subcontractor, laborer or material supplier who is not paid for work on the Property may have the right to record a lien (often called a mechanic's or construction lien) against the Property — in some cases even if Owner has paid Contractor in full. Contractor will pay its subcontractors and suppliers when due and, on Owner's request, will provide lien releases with each payment received.
State law may require a contractor to give the owner a lien notice, a disclosure statement or other notices before this Contract is signed or before the Work begins. Contractor has given Owner every such notice required for this project, and those notices are part of this Contract.
14. Dispute Resolution
The parties will first try to resolve any dispute through good-faith discussion. If the dispute is not resolved within 30 days, either party may request mediation, with the mediator's fee shared equally. If mediation does not resolve the dispute, either party may file suit in the courts of the county where the Property is located. If state law requires notice and an opportunity to repair before a construction defect claim is filed, the parties will follow that procedure. The prevailing party in any lawsuit is entitled to recover reasonable attorneys' fees and costs.
15. Termination
Either party may terminate this Contract by written notice if the other party materially breaches it and does not cure the breach within 10 days after receiving written notice describing it. On any termination, Owner will pay Contractor for the Work properly performed through the termination date and for materials delivered or specially ordered that cannot be returned, less payments already made and the reasonable cost of correcting any defective Work.
16. General Provisions
This Contract is governed by the laws of the State of Washington. This Contract, together with the Contract Documents and any signed change orders, is the entire agreement between the parties and replaces all prior proposals and discussions. It may be amended only in a writing signed by both parties. If any provision is found unenforceable, the rest of the Contract remains in effect. Notices must be in writing and delivered by hand, by mail or by email to the addresses stated above. Neither party may assign this Contract without the other party's written consent.
Signatures
The parties have signed this Contract on the date first written above.
You, the buyer, may cancel this transaction at any time prior to midnight of the third business day after the date of this transaction. See the attached notice of cancellation form for an explanation of this right. (This notice applies when this Contract is signed at Owner's home or at another location that is not Contractor's permanent place of business.)
Owner:
______________________________
Karen Whitfield
Date: ____________________
Contractor: Summit Line Builders LLC
______________________________
By: Michael Reyes, Managing Member
Date: ____________________
Notice of Cancellation
(Give Owner two completed copies of this notice when this Contract is signed at Owner's home or at another location that is not Contractor's permanent place of business.)
October 10, 2026
(Date)
You may CANCEL this transaction, without any Penalty or Obligation, within THREE BUSINESS DAYS from the above date.
If you cancel, any property traded in, any payments made by you under the contract or sale, and any negotiable instrument executed by you will be returned within TEN BUSINESS DAYS following receipt by the seller of your cancellation notice, and any security interest arising out of the transaction will be cancelled.
If you cancel, you must make available to the seller at your residence, in substantially as good condition as when received, any goods delivered to you under this contract or sale, or you may, if you wish, comply with the instructions of the seller regarding the return shipment of the goods at the seller's expense and risk.
If you do make the goods available to the seller and the seller does not pick them up within 20 days of the date of your Notice of Cancellation, you may retain or dispose of the goods without any further obligation. If you fail to make the goods available to the seller, or if you agree to return the goods to the seller and fail to do so, then you remain liable for performance of all obligations under the contract.
To cancel this transaction, mail or deliver a signed and dated copy of this Cancellation Notice or any other written notice, or send a telegram, to Summit Line Builders LLC, at 1820 E. Sprague Avenue, Suite 4, Spokane, WA 99202 NOT LATER THAN MIDNIGHT OF October 15, 2026.
I HEREBY CANCEL THIS TRANSACTION.
______________________________
(Date)
______________________________
(Buyer's signature)
What it's for
A construction contract sets out who does what, by when and for how much: the scope of work, the schedule, the price and how it is paid, and what happens when something changes. Most disputes between owners and contractors start with an unclear scope, verbal changes or a payment schedule that runs ahead of the work — this template addresses each of them in writing.
There is no single federal construction contract law; state law governs. Many states have home improvement statutes that dictate deposits, required notices and contract wording, plus licensing and mechanic's lien laws — check your state's requirements before you use the contract. Two federal rules apply everywhere: the FTC Cooling-Off Rule (16 CFR Part 429) when a consumer signs at home, and the EPA Lead Renovation, Repair and Painting Rule (40 CFR Part 745) for work on homes built before 1978.
The template is pre-written for a kitchen remodel by a small contractor, with a deposit, three progress payments tied to milestones and a final payment on substantial completion. It includes the federal three-day cancellation notice and form for contracts signed at the owner's home. Change the scope and milestones for any residential or light commercial project; the estimate and change order templates use the same owner, contractor and project fields, so one project holds the whole job.
What it should include
- names and addresses of the owner and the contractor, and the contractor's license or registration number
- the project address and a clear scope of work, referring to the plans, specifications or estimate
- start date and substantial completion date
- the contract price and a payment schedule tied to completed work
- a written change order procedure and how concealed conditions are handled
- who obtains permits, and the contractor's liability and workers' compensation insurance
- warranty, delays, lien rights, dispute resolution and termination
- the three-day cancellation notice and form when it is signed at the owner's home, any notices your state requires, and both parties' signatures
How it works
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Frequently asked questions
How much can a contractor charge as a deposit?
It depends on the state. California caps the down payment on a home improvement contract at $1,000 or 10% of the contract price, whichever is less, and Maryland limits a home improvement deposit to one-third of the contract price. Many other states set no cap, so the contract decides. Whatever the law allows, keep progress payments in step with the work actually done — the template ties each one to a milestone.
Does a homeowner have three days to cancel a construction contract?
Under the FTC Cooling-Off Rule, a consumer who signs a contract for $25 or more at their home (or $130 or more at a temporary location) can cancel until midnight of the third business day after signing. The contractor must state that right next to the signatures and give two copies of a notice of cancellation form — the template includes both; fill in the cancellation deadline. The rule does not cover a contract negotiated at the contractor's permanent place of business, and a homeowner can waive it in writing for a genuine emergency repair. Many states have their own home-solicitation laws with additional requirements.
Does a contractor need a license to sign a construction contract?
Rules vary widely. Some states license general contractors statewide (California, Arizona and Florida, for example), Washington requires registration with its Department of Labor & Industries, and others such as Colorado and Texas leave general contractor licensing to cities, while still licensing electricians and plumbers. In many states an unlicensed contractor cannot sue to collect payment or record a lien, so check the requirements where the project is located.
This template is a general starting point. Draftmill is not a law firm and does not provide legal advice; using a template creates no attorney–client relationship, and we do not guarantee that it is correct or suitable for your situation. Laws differ from state to state — adapt it to your situation, and have important contracts reviewed by an attorney licensed in your state. Terms of Service
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