Take the Stress Out of Creating a Residential Construction Contract

Standardized Legal Documents Take the Stress Out of Creating a Residential Construction Contract

How To Get a First-Rate Residential Construction Contract by Doing Less

If you are planning to participate in a construction project as a contractor or property owner, some of the primary aspects to consider are the collaboration terms and conditions. Signing a residential construction contract helps the parties shield their rights, and it should always be a crucial part of the procedure.

Writing this type of contract may be tricky. You may get lost in the sea of legal terms you aren’t familiar with or get stuck with inaccurate online templates. The good news is—with our guide, it doesn’t have to be rocket science! We will introduce you to the essentials of residential construction contracts and share the secret to drafting legal documents fast and with zero effort!

Residential Construction Contract in a Nutshell

A residential construction contract is a legal document between a contractor and a residence owner that outlines the details of the specific construction project. By signing it, the contractor confirms they will perform construction works on the property under specific conditions and at a specific price.

A solid residential construction contract should:

  • List the responsibilities and expectations of both parties
  • Contain precise information about the agreed-upon amount and payment details
  • State all potential risks the project brings to prevent miscommunication and future disputes between signing entities
  • Provide solutions for controlling potential changes during the project and defining the consequences of those modifications

What Types of Residential Construction Contracts Exist?

Depending on your case and personal preferences, you can opt for one of the following four types of residential construction contracts:

Type of Construction Contracts


  • State the costs of both labor and materials
  • May include a guaranteed maximum price
  • Protect the contractor if there are uncertainties or if the property owner omits some details
  • Define a fixed amount that should be given to the contractor after they complete the job
  • May include liquidated damage clauses or the penalties that may emerge if the contractor finishes the project later than expected
Time and material
  • Are valuable in the projects that are considered slightly uncertain
  • Specify hourly or daily payments, excluding the fixed fee or percentage
  • May contain the maximum guaranteed price to give the residence owner peace of mind
  • Are used when bidding for federal projects
  • Inform the residence owner that the contractor will charge them excluding a markup for the units the project involves

Sections You Should Not Skip When Composing a Construction Contract

Besides understanding what a residential construction contract serves for, you must be familiar with some fundamental clauses this agreement should cover. You can be as specific as you want while writing it and add any clause you consider necessary, but make sure you include the following:

  1. Information about the contractor and property owner, including:
    • Full legal names
    • Phone numbers
    • Email addresses
    • Physical addresses
  2. Legal description of the property
  3. Project description, including:
    • Scope of work
    • Work methods
    • Required permissions
    • Materials and equipment
    • Estimated date of completion
  4. Payment terms
    • Amount
    • Due dates
    • Potential exceeding costs
  5. Construction responsibilities
  6. Unforeseen circumstances and acts of God
  7. Damages and limitation to liability
  8. Disposal of materials after the completion of the project
  9. Effective date
  10. Signatures of both signing parties

Not Proficient in Writing Contracts? Let DoNotPay Do It for You

Having your contract drawn up by a lawyer is the safest but the least affordable option. Depending on the document you need, you may have to set aside hundreds or thousands of dollars. If you decide to compose the agreement yourself but aren’t familiar with the law, you may end up with dozens of failed drafts.

Why spend time and money on dissatisfying solutions when you can and get a complete personalized contract in under five minutes? Our database boasts the best customizable templates you can modify and turn into a convenient agreement. You don’t need to keep up with laws—each contract we create for you complies with applicable regulations in your state. In other words, we do all the grunt work, and you get a ready-made document ready for signing!

We offer numerous standardized legal documents, including:

How To Generate a Contract With DoNotPay

To create your customized legal document, follow the steps below:

  1. from any web browser
  2. Search for the desired document by entering its name in the search box
  3. Provide more details you want to cover in your contract

Once you submit all the details, all we need is a couple of moments to create a clear and concise agreement tailored to your preferences. Note that you must sign it with the other party or have it notarized if the local legislature imposes it. 

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