FREE Canadian New Home Construction Agreement at Fixed Price
This free New Home Construction Agreement at a fixed price is designed for use in Canada. It specifes the important terms for this type of tranaction.
Disclaimer:This was not drafted by a attorney & should not be used as a legal document.
NEW HOME CONSTRUCTION AGREEMENT- FIXED PRICE
This New Home Construction Agreement ("Agreement") is made on [Date of Agreement] by and between:
[Name of Owner], having his residence at [Address], ("Owner");
[Name of Contractor], having his residence at [Address], ("Contractor").
WHEREAS: The Owner owns a piece of land("Property) described below and the Owner wishes to retain the Contractor to build a new home on the Property;
NOW THEREFORE, in consideration of the mutual covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
Construction of Home: The Owner agrees to engage the Contractor and the Contractor agrees to build the Home on the Property in accordance with the terms and conditions of this Agreement and in the manner provided for in this Agreement. The Contractor will use his best efforts in professional and workmanlike manner to achieve Substantial Completion of the Home within [Number of Months it is expected to take to Complete Construction of Home] months after the Commencement Date being [Date].
Specifications of Home: The Home shall be constructed in accordance with the layout specified in schedule "A" hereto and the details and finishes specified in Schedule "B" hereto, and shall be constructed in accordance with the plans and drawings mutually approved by the parties hereto.
Changes: It is agreed between both the parties that there shall be no changes to the layout, details, specifications, drawings or finishes of the Home unless such changes have been mutually agreed to in writing by the parties hereto, with such appropriate adjustments to the Contract Price being CAD $ [Amount] as the parties hereto may mutually agree upon in writing.
Access to Home: The Owner shall have access to the Home during construction at reasonable times, provided that the Owner gives the Contractor reasonably prior notice requiring any such access.
Control over Construction: The Contractor shall have total control over the construction of the Home and shall effectively direct and supervise the construction of the Home so as to ensure conformity with this Agreement. It is further agreed between both the parties that, the Contractor shall be solely responsible for construction means, methods, techniques, sequences, and procedures and for coordinating the various parts of the construction of the Home under this Agreement.
Contract Price: The Owner shall pay to the Contractor an amount of CAD $ [Amount] as the Contract Price for the performance of the obligations undertaken by the Contractor. If Owner fails to make payments, as they become due under the terms of this Agreement, interest at the rate of [percentage] percent (___%) per annum on such unpaid amounts shall also become due and payable until payment. Such interest shall be compounded on a monthly basis.
Unavoidable Delay: If Contractor is delayed in the completion of the construction of the Home by labour disputes, strikes, lock-outs (including lock-outs decreed or recommended for its members by a recognized contractors' association, of which Contractor is a member or to which Contractor is otherwise bound), fire, unusual delay by common carriers or unavoidable casualties, or without limit to any of the foregoing, by a cause beyond Contractor's control, then the Term shall be extended for such reasonable time as may be required by Contractor. The extension of time shall not be less than the time lost as the result of the event causing the delay, unless Contractor agrees to a shorter extension. Contractor shall not be entitled to payment for costs incurred by such delays unless such delays result from actions by Owner.
Insolvency of Owner: If Owner should be adjudged bankrupt, or makes a general assignment for the benefit of creditors because of Owner's insolvency, or if a receiver is appointed because of Owner's insolvency, Contractor may, without prejudice to any other right or remedy Contractor may have, by giving Owner or receiver or trustee in bankruptcy notice in writing, terminate this Agreement. In such conditions, the Contractor shall be entitled to his due Contract Price along with such expenses incurred by the Contractor.
Failure to Pay: The Contractor may notify Owner in writing that Owner is in default of Owner's contractual obligations if the Owner fails to pay Contractor when due any amount sowing under this Agreement.
Compliance with the Applicable Laws: The Contractor shall comply with the laws, ordinances, rules, regulations, or codes which are or become in force during the performance of this Agreement and which relate to the construction, to the preservation of the public health, and to construction safety.
Insurance: Contractor shall obtain and maintain, at its own expense, general contractor’s liability insurance in connection with the construction of the Home.
Waiver: Except as otherwise expressly set out herein, no waiver of any provision of this Agreement shall be binding unless it is in writing.
Counterparts: This Agreement may be signed in one or more counterparts, each of which so signed shall be deemed to be an original, and such counterparts together shall constitute one and the same instrument. Notwithstanding the date of execution of any counterpart, each counterpart shall be deemed to bear the effective date set forth above.
Governing Law: This Agreement shall be governed by and construed in accordance with the laws of [State], Canada.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the date first written above.