Construction Contract template

Free construction contract template

A construction contract is an agreement that gets a contractor and client aligned before the first nail is hammered. This legal document outlines everything from the scope of work and materials to payment schedules and project deadlines. By getting everything in writing, both contractor and client can protect themselves and have a shared understanding of the goals of the construction or renovation project.

Docusign makes drafting this agreement straightforward. Our free, editable construction contract template takes the guesswork out of the paperwork. It provides a clear structure that you can fill out and customize online with your project's unique details. So when you're ready to break ground, you can use Docusign to get the agreement securely signed. Once complete, you can download and print it out. Start by clicking on the construction agreement example below: 

In order to ensure your project runs smoothly from start to finish, a detailed construction contract is non-negotiable. Docusign’s template helps you create a clear, legally enforceable agreement efficiently and securely. Ready to start your next build? Get started with a free construction contract and free Docusign account.

What is a construction contract?

A construction contract is a legally enforceable agreement between a property owner and a contractor that outlines the terms, responsibilities, and obligations for a construction project. It defines the project scope, timelines, payment schedules, quality standards, and responsibilities for each party. Construction contracts help prevent disputes by clearly defining expectations before work begins.

When do you need a construction contract?

You should use a construction contract whenever you are:

• Hiring a general contractor or subcontractor for building or renovation projects

• Engaging in commercial construction, residential construction, or remodeling

• Working on projects with significant financial investment or multiple stakeholders

• Requiring a clear plan for scope, deadlines, materials, and payments

Construction contracts can help manage risk, reduce misunderstandings, and ensure that all parties are legally protected (American Bar Association).

Key elements of a construction contract

A construction contract should include the following essential components:

• Project description and location: Clear identification of the project and its site.

• Scope of work: Detailed list of all work and tasks to be performed.

• Payment terms: Total contract price, deposit, payment schedule, and timing of payments.

• Change orders: Process for handling changes to the work, including written approvals.

• Project schedule: Start date, estimated completion date, and provisions for delays.

• Permits and approvals: Responsibility for obtaining necessary permits and inspections.

• Insurance and liability: Requirements for contractor insurance coverage.

• Warranties: Coverage for work performed and materials used.

• Inspection and acceptance: Owner’s right to inspect and process for final acceptance.

• Termination: Rights and procedures for ending the contract.

• Dispute resolution: Method for resolving disagreements (mediation, arbitration, court, etc.).

• Entire agreement: Statement that the contract represents the full agreement.

Additional (optional) provisions

Although not required, the following clauses may be added to further enhance the template:

• Liquidated damages: Penalties for delays beyond the scheduled completion date.

• Retainage: Withholding a portion of payment until project completion.

• Subcontractors: Requirements for the use and approval of subcontractors.

• Indemnification: Protection against third-party claims.

• Force majeure: Handling of unforeseen events (natural disasters, strikes, etc.).

• Cleanup and site maintenance: Responsibilities for maintaining and cleaning the site.

• Materials and substitutions: Standards for materials and how substitutions are handled.